Needs and Wants 888

Why is the stock market so strong? Why is everybody so wrong year to date on their forecasts??...well first of all if your information source is the media....then of course you've got the wrong information.

The answer...its complicated...of course..but zero/ free interest rates always creates new bubbles.

The DJIA has not suffered a three-day losing streak in 87 days, the longest such run since 1958, said the WSJ today.

Stocks in general love a wall of worry....and the general stock market is shrinking from all the stock buy backs and dividend payments. Globally investors are cashing in Yen and buying USD and stocks. Bonds yield nothing. Yesterday the US Treasury issued $20,000,000,000 in new four week treasury bills..they paid zero for it....in other words the US Government is paying zero money to borrow money. NICE! Also, because the Fed has bought and continues to buy all the outstanding government debt up....there is now a shortage of bonds to buy.....NICE too!

Bears cry foul...and say volume is shrinking...yes..because available "stock" is shrinking. The Wilshire 5000 "index" can't even maintain enough companies to reach its namesake number....there are only 3,678 companies in their index!

The media talks about "new highs" in the various indexes....that is called nominal returns ....real (or adjusted) for inflation (devaluation of the dollar) we are not yet at new highs.... in the major indexes...

Just like housing....as inventory shrinks.....new buyers have to start paying up to entice current owners to sell....thus market cycles....shrinking and rising volumes..

If the stock markets move is for real...and has continued "legs" than it is suggesting the economy may be stronger than what "is reported" ....remember the underground economy maybe as large as it has ever been and growing because of all the record new rules and regulations being put forth.

Coca-Cola buys one of every six oranges grown world-wide for its world leading fruit juice production.

America's super blue chip branded companies remain the envy of the world as they are over capitalized and relatively inexpensive.

The new Australian visa's for wealthy Chinese is called the 888....a number Chinese associate with wealth.

Incredibly, Central banks are buying stocks/ equity in record numbers as bond yields plummet...we can't ever remember seeing headlines like that before.....they are also buying gold ..physical gold....in record numbers...are you?

Danny Boy seen here enjoying the winters last snow fall....time for change.