In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 9/16/2012.
Not to be upstaged by Mario Draghi’s announcement that he will do “whatever it takes” to save the Euro during his prior week’s announcement, it was now Ben Bernanke’s turn to deliver the goods for the U.S.
His new QE-3 program is open-ended, which means it can run for as long as the Fed sees fit until the goal of lower unemployment has been achieved. Since none of the previous QE’s have helped in that respect, the Fed feels obliged to do more of the same.
Adding liquidity to the system is one thing, if that’s what the issue is. However, I still believe that the overriding concern continues to be too much debt (left over from the 2008 crisis) and more debt will not resolve this problem.
In the process of continuing to hit the Control+P button, the dollar will suffer as the instant gold rally has indicated. Yes, added liquidity may find its way into driving equities somewhat higher, but I have wonder for how long. We have now moved into unchartered territory, and there are bound to be unintended consequences lurking on the horizon.
Over past week, we covered the following: