DONT TAKE ANY ILL ADVISED FINANCIAL RISKS
DONT FOLLOW THE CROWD
BE Skeptical of QE3 providing huge stock market returns
Where is that money GOING - To buy up mortgage backed securities -- think about this
What is the problem with MANY of those MORTGAGES??
YES - they ARE UNDER WATER, and /or AN ASSET that is DECREASING OVER TIME
HOW is that going to work out?
First , it would appear as a BAD INVESTMENT
Then
IF the FED continues to PRINT MONEY as $40B/ month, eventually when we get a recovery
IT COULD INSPIRE RUNAWAY INFLATION, and just like in the 1980's they will have to PUSH INTEREST rates back up to 15% to take that MONEY OUT OF THE SYSTEM.
BOOM -BUST- BOOM & BUST-- which is JUST what the FED is SUPPOSED TO PREVENT.
Current graph shows the SUPPORT price levels for the SPX
IF the SPX drops to or under the 1395 level, then we are looking at a NEW 2 to 5 month LOWER DIRECTIONAL price move.
Stay tuned for further updates
Jay
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