Here's Why the Market Can Keep Rising

We are in melt-up mode: another day, another record closing high for the Dow and the S&P 500. Even the Nasdaq Composite chart looks good, reaching its highest closing price since the bubble years. Clearly, some folks are learning the hard way that the market and the economy are two separate entities. Stocks can rally in a weak economy or fall in a strong one. They are pieces of companies, subject to many forces, influenced by more than just the economy.

For example, Japan is enacting an extremely powerful quantitative easing program, one that is twice as large as the U.S. version if we measure it as a percentage of GDP. The Bank of Japan is buying massive quantities of Japanese government bonds. This results in a flow of capital into the financial system at a rate of $75 billion per month....368 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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