WHAT ARE RATES TELLING US ABOUT QE2?

During periods of BULL MARKETS, it is best to STAY invested, and ignore drawdowns as the market will meander its way higher to THE TOP and it is too hard ot time, being out of the market at certain times will destroy your returns.

Using market funds and ETF'S can give you exposure to exactly what the index you desire is doing.

Last 10 years stocks have gone nowhere suffering 2 bear markets, this has caused many to shun stocks. But with FED keeping Funds rate at 0%, savers are being punished with near zero returns......maybe 85% rally has lured some back.

I do not feel at these levels, with rising rates the market is no longer a good value. The market is underpinned by Fed money and MOMO, without the $TRILLIONS poured in the rally would not exist.

Last AUG stocks were suffering thru a 16% decline UNTIL the FED spoke of additional measures, saving the market.

I have warned of the 2 bear markets, instead of coming out of stocks 100%, the portfolio needed rebalancing for fear and stress. Bonds and commodities were the ticket and RAISE CASH to 40%, even a tad of inverse etf's but not for everyone.

IN 2009 after FED got hot and heavy, stocks bottomed, fear was high, bulls non existant....how do we know it would be a bottom?

WRONG QUESTION......stocks were on sale, go shopping. Because you raised cash you have money to buy stocks on cheap.....you know after 50% haircut, they will come back, BUY income producing stocks to lessen risk....Bear markets hurt people, but bear markets give you chances to buy cheap.

Stocks are NO LONGER cheap....but there is FEAR towards BONDS.....so far I agree....when stocks falter Bonds will catch a bid.

GOLD? under correction, but long term still in bull mkt.....unless certain Support levels give, probaly not.

There is news, then there is stock action. BUY CHEAP SELL HIGH....most do opposite. MACRO view tells me to be wary, that this is cyclical cull not new secular bull....so sure I have been top watching....easy money made IMHO.

I would be raising cash again....even a drop to 1150 many anticipate that level as BUY THE DIP....need cash to buy.

A higher bid, liqiudity and less fear build a bull market and rising prices.....and the stock market is the ULTIMATE PONZI SCHEME that is always looking for the NEXT GUY to pay MORE for the stocks...when they are scarce prices fall......in a true bull market you buy the dip...usually when 200 EMA is tested and holds.

There are lots of things I am watching, I will report as things develop.

D