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User Info The Pattern of The Market; entered at 2017-02-12 12:04:56
Sondergaard
Posts: 720
Registered: 2007-07-13 Big Trees
It seems the biggest wild card is the unprecedented involvement of central banking.

I know they can't print value. I know their ability to manipulate price discovery is not infinite. But when I see charts like this (published Feb 8 at http://www.fuw.ch/article/snb-haelt-fast.... I wonder how any sane person could bet against these issues?

Granted, a $1.7B position in Apple is small compared with its nearly $700B market cap. But these are just direct purchases. The ECB is buying corporate bonds, which could indirectly fund further stock buybacks. The BOJ holds 40% of the entire outstanding balance of JGBs and shows no sign of stopping.

One often hears that the central banks are "out of dry powder" as David Stockman's been saying for over a year. I'm not seeing it.

How much worse can fair price discovery get before it gets better? I'm guessing worse. Much worse.
2017-02-12 12:04:56