I had to say it although I do not know what is going to happen, but today’s move on the market was very surprising to me.
It wasn’t the “surprising” halt on tapering efforts from the FED, but the Wall Street reaction what shocked me. Are we really dealing with a bunch of idiots on the market these days? As long as I watch what’s going on as surprised and disgusted I am.
It looks like the investors are too fixed on FED’s moves that they are already blindfolded to see the reality.
So what has happened? Ben told us this early afternoon that the US economy stinks, it is bad, it doesn’t perform as expected. Therefore FED decided to keep its QE3 stimulus intact and continue buying bonds spending $85 billion of printed money.
And the market participants started buying everything what was available and pushed S&P 500 and other markets to new record highs.
Later a press conference was held and it moved the markets even higher.
Although I believe this frenzy run-up will correct tomorrow, the market may continue on its pumped march upwards. I am however skeptical and think these levels are artificial and unsustainable that I am going to take some steps to slow my buying and continue more in saving cash.
If this bubble busts, I will have a lot of cash available to buy all the stocks the same investors will start dumping when the music stops.