“Say it ain’t so Peter”, was the heading of an email I received from a reader after receiving my early Monday morning blog post that began with “Look for stocks to rally possibly into Labor Day…”
The reader wanted to know why I now felt the stock market could rally for the rest of the summer given all the bad fundamental factors I’ve pointed out.
It’s only fair I tell all what I told him:
“It’s become apparent that major Central Banks around the world are directly intervening in financial markets, including equities (Clearly this prevented any real lasting damage from the UK leaving the EU). While long-term it will be disastrous (with the combined insanity of literally throwing money out of helicopters and negative interest rates the new norm), the “Don’t Worry, Be Happy, crowd addiction to monetary easing’s (no matter how poor the economic results were from previous QEs), is all but certain to cause equity prices to rise in the short-term.”
I also told the reader that I remain out of the “prediction” racket and will not be providing regular market commentaries that can in any way be perceived as “market-timing”.
Personally, I remain quite comfortable in my foxhole with my head down despite what should be a relative short truce of the bombs going off all around.