The Day Ahead: And, Suddenly, the Sky Is Falling
Wow, if I didn't know any better I'd think the stock market was headed for an epic crash. Is the sky suddenly about to fall? These are just few of the thoughts that I gathered from sniffing around the market Monday. I am no whacked-out bull, but the tone of some pros was certainly interesting. It was almost as if they'd banded together in a closed-door weekend meeting and agreed to scare the weak hands, and then nibble at what those hands have dropped. Buy when everyone else is fearful and sell when there is a buying orgy, right? (This, of course, was in evidence after the Fed's announcement of a third round of quantitative easing.)
Welcome to the new reality. In an environment in which we are relying on an old friend for assistance -- the Federal Reserve -- there will be numerous attempts to shift investor attention to the next catalyst, whether good or bad. For the moment, there is an absence of a news-driven catalyst. All we're seeing are quiet monthly bond buys from the Fed and the renewed concern on the impact of fiscal cliff and corporate earnings....562 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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