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 9/9/2012.
After the ECB’s Draghi pulled out the big guns, the markets went into overdrive pushing the major indexes to multi-year highs. As I pointed out, nothing has actually been chiseled in stone; so far his ideas are merely promises and, as always, the devil will be in the details with Germany ultimately having the last word.
As we’ve witnessed over the past few months, neither the ECB nor the Fed really need to take any action to push the markets higher; the mere mention of the fact that new versions of QE still exist is enough to put a floor under equities.
It appears that current stock market levels are no longer a function of economics, but simply the result of central planning, as Wall Street has become addicted to the next fix from the Fed, whatever that will be.
Makes me wonder where the markets would be at, once the Fed runs out of ammunition and Wall Street has to face reality and accept the fact that either stimulus no longer exists or its effects have been negated. It will not be a pretty moment.
Over past week, we covered the following: