Friday, March 6, 2015
Economy Looks Strong
CERR Investments: It looks like the governments around the world have figured out to keep their economies strong just print more money. Quantitative Easing will be the strategy for a long time to come. Why? Because it seems to work as long as you keep lowering interest rates. First the US, then Japan and China, next Europe. It also helps to have a job market that is rebounding and oil prices tanking. It is interesting you don't hear a lot of the economist with predictions like you used to. Because the government has gotten so involved, technicals and fundamentals don't seem to work all the time as expected. Now the game is wait till the Feds speaks to see how the markets react and how much money the government will supply with Quantitative Easing. It always surprises me that when the market drops over about three days the Feds comes out and speaks and wow the market rebounds. However now it is a time to be concerned because the market is so high now that you wonder can you keep up with the same strategy. Does the markets have room to continue to makes it run? I am hoping yes till May.