Bernanke is Clear on Triggers for QE3, and We Aren’t Close to Them


Author Larry Berman

Posted: 31 Mar 2012 reposted from etfcm

The next top that is likely to develop over the coming months will likely serve to suck in any remaining sideline cash while the smart money continues to distribute shares to the late to the party lemmings.

Of course, we are only correct here if the real economy is not improving and we are only getting the benefit from Bernanke stimulus. If the economy is really improving, which we doubt, then earnings are just fine and valuations remain relatively cheap. Is that the case or not? We think not, but we’ve been wrong before.

We are at a key point of inflection, so we have reduced client exposure to half the maximum for our US large cap and small cap portfolios. At this point, we see the glass as half full, so we are half in. If the glass breaks, leaks, or fractures, we’ll turn exposure to zero. Otherwise, we are waiting for higher levels to feed the quacking ducks on TV as to how wonderful the recovery is.

The Senate had the opportunity to pass important legislation to take unneeded subsidies from big oil (XOM made $50B+ EBIT) and channel them into renewable and other productive technologies—they failed!!!


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Comments

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