There is no one out there, or almost no one out there, who thinks that the current rise in the market is a reflection of a significantly improving economy.
When the bulls make their case they basically say—yeah we’re barely in recovery, but the Fed is going to print to buoy the markets. And they’ve been right.
Every time the markets looked like they were running out of QE steam the Fed has rushed in with more money. Now we have ongoing QE. Where will the ride stop?
How it will stop is an even more interesting question. Because it will stop.
But in the meantime how is this buoying happening? Charles Biderman thinks he knows.