Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Why QE2 Won't Be Enough

By

A look at how the markets have anticipated this second round of quantitative easing and what it will actually accomplish.

PrintPRINT
They call you lady luck
But there is room for doubt
At times you have a very un-lady-like way
Of running out

Your on this date with me
The pickin's have been lush
And yet before the evening is over
You might give me the brush

You might forget your manners
You might refuse to stay
And so the best that I can do is pray
-- Luck Be A Lady


I couldn't help but think of that song and those lyrics after my last article (see Bond Market Price Action Confirms Coming Period of Slow Growth) because for the past three weeks or so almost everything except the dollar has moved upward and onward, in a coordinated/correlated fashion. When you take a look at the run over the past month, it really has been something to behold:


Click to enlarge


What's more, the run in commodities, while partially driven by revisions in the USDA's grain production estimates and supply problems in Russia as they pertained to wheat, has also seen a spectacular run during the past two months:


Click to enlarge



Click to enlarge



Click to enlarge


I don't think I need to mention gold or even the recent action in crude oil because it all seems to mimic the bull run the other assets are having. In the meantime, the dollar has been on its own Bataan Death March:


Click to enlarge
< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE