“As we can see with modern equity markets, common sense is taking a back seat to pump-priming. There is indeed a Wall Street Party going on, as we’ve pointed out, and the IPO market, in fact, is a large part of it. When markets are stuffed with money, volatility certainly becomes a concern. We recall the 1987 Crash was brutal, yet markets gradually climbed afterwards, culminating in the tech boom of the late 1990s. Loose money is generally a powerful support for higher averages and stronger numbers. And yes, this could continue for a while because the REAL economy has not yet felt the full impact of what’s going on in the stock market.”
http://www.thedailybell.com/news-analysis/34758/Why-Were-Not-Sneering-at-the-Averages/
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