Stocks & Equities
We’re in another Tech Craze, similar to the one in 2000, by the look of things
The last two years have seen a number of high profile Tech IPOs for businesses that are barely profitable or have never turned a profit. Indeed, of the tech firms that went public in 2013 so far, 73% have never turned a profit (compare that to just 27% of the tech IPOs that were unprofitable in 1999).
However, this is not to say that this Fed intervention is not creating tremendous opportunities for stock pickers. After all with the Fed juicing stocks to this degree, there is no shortage of mis-pricings in high quality companies.
To take out an annual subscription to Cigar Butts & Moats…
Best Regards
Phoenix Capital Research
Despite Janet Yellen’s commitment to continue supporting the economic recovery the transmission system of government interventions is clearly broken. As STA Wealth Management’s Lance Robertss hows in the simple chart below, it has taken $35.17 of government intervention to generate $1 of economic growth over the past 5 years. More importantly, the rate of diminishing returns is increasing. In other words, it is taking consistently more dollars of intervention to create an incremental increase in economic growth.
In the meantime, as shown below, the continued liquidity programs from the Federal Reserve continue to boost asset markets towards more exuberant levels.
However, despite signs of a potential market “bubble” Janet Yellen clearly sees no such thing…
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Stock market continue its momentum from yesterday but struggled to climb. More weak comments from Fed Chair nominee Janet Yellen suggested that she would likely see QE continue for a while to help the US economy get back up on its feet.
QE liquidity has been one of the main forces driving the stock rally over the past year and today was…
Read Full Report: http://www.thegoldandoilguy.com/articles/etf-trading-strategies/
Ed Note: Very good, clear video
Chris Vermeulen