"I am not leaving my wingman."
--Maverick (Top Gun)
Dave Rosenberg notes that markets are getting trained to put money to work (read: take risk) when they get liquidity (read: money) from central banks. This is consummate moral hazard--taking more risk than you otherwise would because you think someone else has your back.
Markets cannot be accurately assessed unless the moral hazard factor is appropriately considered.
position in SPX
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1 comment:
On FT.com, Rosenberg states:
“volume of dollars is going up as we get more quantitative easing” he sees gold at $3,000 per ounce.
“bullish view on gold and gold mining stocks."
it is about “stating how you view the world" and he warns that the major central banks are all going to print more money and keep real interest rates negative “as far as the eye can see.”
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