Tuesday, May 1, 2012

The Fix is In

A one track mind
You can't be saved
Oblivion is all you crave
If there's some left for you
You don't mind if you do
--Robert Palmer

Trying to wrap your head around the equity rally since last fall? Not sure you need more than the below chart to explain it.


This is a market dependent on Fed stimulus. Take away the stimulus, and prices fall.

The addict concludes that the process must perpetuate, and reaches for another fix of risk.

position in SPX

1 comment:

dgeorge12358 said...

Four of the world’s largest central banks have gone absolutely berserk, running the money printing presses like never before in history: Federal Reserve, Bank of Japan, Bank of England, European Central Bank.
~Martin Weiss