“Loose monetary policy by central banks around the world has made us sick, according to Societe Generale's former strategist Dylan Grice, who says that cheap money has caused divisions in society and in some cases could even add to the risk of war...[The policies have] increased revenue for...governments, Grice added, but inflation and a lack of spending power will mean the people furthest away from this new money are the ones that will end up losing out.
"Deliberately impoverishing one group in society is a bad thing to
do. But impoverishing a group in such an opaque, clandestine and underhanded
way is worse. It is not only unjust but dangerous and potentially
destructive," he said. Full story
at...
http://www.cnbc.com/id/100544920
"I previously
posted Mike Shedlock’s summary of a paper by Emmanuel Saez and analysis of the
impact of QE Infinity. Mish
noted, “From 2009 to 2011, average real income per family grew modestly by 1.7%
but the gains were very uneven. Top 1% incomes grew by 11.2% while bottom 99%
incomes shrunk by 0.4%.
”For more see http://globaleconomicanalysis.blogspot.com/2013/02/top-1-received-121-of-income-gains.html
SOME ANECDOTAL EVIDENCE
“Lamborghini sales...according to
AP...[have] soared by 50% in the US and [are] up by 34% in the
recession-riddled Europe.” http://www.zerohedge.com/news/2013-03-12/what-recession-2012-lamborghini-deliveries-50-us-34-europe
At the same time, Food Stamp recipients hit an all-time record. 20% of Americans are on food stamps as of the close of 2012. (I sure am glad the economy is recovering; but if it is…why are more people on food stamps?)
http://www.zerohedge.com/news/2013-03-11/foodstamp-recipients-hit-record-alongside-record-dow-jones-and-record-debt-20-eligib
MARKET RECAP
Wednesday, the S&P 500 finished up 0.1% to 1555 (rounded). VIX fell about 3.6% to 11.83.
Wednesday, the S&P 500 finished up 0.1% to 1555 (rounded). VIX fell about 3.6% to 11.83.
NTSM
Tuesday, the NTSM analysis remained HOLD at the close.
Sentiment has fallen to 52%-bulls for the 5-day moving average (based on
closing amounts of dollars invested in select long/short mutual funds with Guggenheim
{formerly Rydex} mutual funds). That’s
the number I follow. 52% is a high number, but not extreme, and the market can improve because sentiment still has room to go up.
On the other hand, the S&P 500 is 9.5% above its 200-day moving
average as of Wednesday’s close. 10-15%
above the 200-dMA is probably about as far as the market can get before it goes
into correction so I doubt there is too much more upside. We’ll see.
MY INVESTED POSITION
With long-term funds, I remain about 20% invested in stocks as of 5
March, due to my risk tolerance rather than the numerical NTSM analysis. To put it bluntly, I currently have no
tolerance for risk. (If I were strictly
following the NTSM numbers, I'd still be heavily invested in stocks.) My
reasoning may be found at…http://navigatethestockmarket.blogspot.com/2013/03/why-i-got-mostly-out-of-stock-market.html
