I get occasional questions about the quantitative easing (QE) programs that are being perpetuated by the world’s central bankers. Will it work? When? The idea of QE is to add some extra money-fuel to start the economic motor. This is really no different from priming an engine before you start it in cold weather. If… Continue reading Why QE fails to start the economic engine
Tag: Quantitative easing
QE is like free beer
We have recorded the first negative lunar green period of the year. The Nasdaq lost 59 points. Is this the start of a prolonged downturn in the stock markets? The current lunar red period will probably give us good clues going forward. Let’s take a look at the S&P 500 chart (click for larger image):… Continue reading QE is like free beer
What parabolic peak?
The recent advances in the stock market have led to an explosion in articles contending that we are in a new stock market bubble or mania. Some analysts are seeing a parabolic peak already. Almost everyone seems to agree that some market decline should come any day now. The number of references to “bubble” on… Continue reading What parabolic peak?