Stocks keep going up no matter what. Every day practically we hit new highs. The Fed keeps dumping money into the financial system. The Bank of Japan is printing on a massive scale too. Housing prices and rents are up significantly in New York and in Washington DC, the 2 cities closest to the printing of new money.
Many of us have watched the climb of the stock market since March of 2009 with a general sense of of unease. We’ve watched our central bank, the Federal Reserve, do all that it could/can to move shares up. Every time the markets faltered the Fed came to the rescue and dumped piles of cash on Wall Street. Check out this chart of the correlation between the Fed’s printing efforts of the past few years and performance of the S&P.
The past few years have been hard. For many of us they have been the hardest years of our lives. For the stock brokers, it’s not been a fun ride to be sure.
But is that the sun peeking through? Some believe that the storm is breaking. As the Facebook hype takes hold (and is sticking to this point) and as the market rides some relatively good data there are actually a few smiles on Wall Street. We are approaching 13000 on the Dow.