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The primary driver of stock prices over the last three years has been the<img class=”alignright size-thumbnail wp-image-40391″ title=”stockcrashimages-1″ src=”http://www.munknee.com/wp-content/uploads/2012/06/stockcrashimages-1-150×150.jpg” alt=”" width=”150″ height=”150″ /> anticipation of more monetary stimulus from Central Banks…[and if one] were to remove the market moves that occurred around Fed FOMC meetings (the times when the Fed announced new programs or hinted at doing so), the S&P 500 would be at 600 today. [As such,] by announcing a program that will be on going in nature, the Fed has removed the anticipation of future Central Bank intervention from investors’ psychologies. This could become highly problematic, especially if these latest announcements turn out to be duds. [Are you doing what needs to be done to protect yourself?] Words: 682
So says Graham Summers (www.gainspainscapital.com) in edited excerpts from his original article* entitled Could It Get Worse Than 2008?
Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.
Summers goes on to say, in part:
Looking around the economic and financial world today, I see countless negative developments and virtually no positive developments to speak of. Just off the cuff, I note that:
Against this backdrop, the one remotely positive development as far as the markets are concerned is the belief that Central banks will somehow solve these problems via endless liquidity. However, even this is now proving to be a false premise.