The Real Reason For the Post Election Market Sell Off

By: readtheticker | Tue, Nov 13, 2012
Print Email

The news media has blamed the fiscal cliff worries for the post election sell of. But maybe this is not the true reason, just maybe it has something to do with the US Federal Reserve.

The rumor is that Ben Bernanke is not keep for another term, this means he can do more of what he pleases without answering the demands from the White House (shock horror the FED is not independent).

Recent Bernanke speeches have called for more fiscal responses to stimulate the economy. Now ask yourself why has the stock market fallen -6.5% since the start of QE3?

Maybe the market sell off is due to FED NOT expanding its balance sheet. Maybe the FED wants to send a message that Washington that they must do more, and there is little the FED can do, maybe a 10% fall in the stock market is the 'scare' politicians need to act. Just maybe! Yes, this is a long bow to draw, but funny things have happened, so why not this scenario.

The test is: When the Fed balance resumes, so does the rise of stock prices. Funny that!

This video does not cover the above scenario. It does refer to the Fed Balance sheet and is on subject of Fed activity, us dollar and gold.

James Turk Capital Account Nov 9th 2012

 


 

readtheticker

Author: readtheticker

readtheticker
www.readtheticker.com/
www.readtheticker.com/Pages/Blog1.aspx

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

LEGAL DISCLAIMER: The material is presented for educational purposes only and may contain errors or omissions and are subject to change without notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible for any actions you may take on any comments, advice,annotations or advertisement presented in this content. This material is not presented to be a recommendation to buy or sell any financial instrument (including but not limited to stocks, forex, options, bonds or futures, on any exchange in the world) or as 'investment advice'. Readtheticker.com members may have a position in any company or security mentioned herein.

Copyright © 2011-2014 readtheticker.com

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/