Loading ...Fundamentally, very little has changed with the markets in the last few months. The equity market themselves have been overvalued for over two years, but with interest rates as low as they have been, the stretching for yields continue. The fear of raising rates makes fixed assets an undesirable investment. A storm appears to be forming at the horizon and caution is needed. The stock market has rebounded 80% from 2008 lows, all driven by government manipulation. The US balance sheet has expanded to support an equity rebound. Without TRAP, QE1, QE2, and QEinfinity, the market would have had a near total collapse. However, nothing lasts forever and the slight whisper in the reduction of quantitative easing causes market panic. Just imagine when the actual unwinding of quantitative easing takes place! […]