Propped Up

There's a room where the light won't find you
Holding hands while the walls come tumbling down
When they do
I'll be right behind you
--Tears for Fears

I continue to believe stock markets worldwide are being bought by central banks in order to keep prices high. We know some central banks (i.e., Swiss, China, Hong Kong, Japan) are doing so either directly or thru 'sovereign wealth funds.' But others, including the Fed, are surely involved as well.

It is my sense that central bankers view stock prices as a vital input for consumer (and voter) confidence. As worldwide economic engines sputter despite massive monetary and fiscal stimulus, these bureaucrats believe that if they lose stock prices here, they lose complete control of the system.

And you know what, they may be right.

position in SPX