AdvancingTime
Senior Member
- Feb 8, 2015
- 150
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Forces are converging to create a false loop further distorting and disconnecting Wall Street from the American economy. The market has been all a twitter as we continue in a "greed and stupidity loop" that can best be explained as follows, stocks are rising so why get out, not getting out is causing the stocks to rise. We are experiencing a double down and let it ride mentality that has been ratcheted higher by media hype, but more is behind the stock market move.
Just as important it must be noted that as the dollar gains strength cross border money flows have become a massive factor. While these cross border flows have been good for the market I caution it does not fundamentally change the economy. Most analysts agree that money from countries with weakening currencies is flowing out of the troubled areas and into America. The article below delves into why this should not be considered a good thing as much as a signal of global instability.
http://brucewilds.blogspot.com/2014/11/why-american-equities-are-rising.html
Just as important it must be noted that as the dollar gains strength cross border money flows have become a massive factor. While these cross border flows have been good for the market I caution it does not fundamentally change the economy. Most analysts agree that money from countries with weakening currencies is flowing out of the troubled areas and into America. The article below delves into why this should not be considered a good thing as much as a signal of global instability.
http://brucewilds.blogspot.com/2014/11/why-american-equities-are-rising.html