“If you buy stocks now, you have the Federal Reserve,
the European Central Bank (ECB), the Bank of Japan, and China’s central bank on
your side. They are basically providing an insurance that the markets will not
have a big decline. That’s a very good guarantee…until eventually it doesn’t
work anymore. But for now, it’s the best guarantee investors could ever hope
for….
“Japan announced that it will buy around
$78 billion of its own bonds per month. That means the globe is now seeing
perhaps $160 billion of fresh money created each month to swamp the financial
markets. That’s almost $2 TRILLION per year. It’s a ‘Wall of Liquidity.’
“The ECB just cut interest rates to 0.5%,
the lowest ever for them. China is already actively trying to patch over the
bad financial problems of its banks. As Europe and China struggle with
recessions, or at least weakening economies, their central banks will only
become more aggressive.” [Bert Dohmen,
5/4/13, www.dohmencapital.com]
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