This is a becoming a major concern for the Federal Reserve. Their massive stimulus is pushing the economy slightly higher but not to the extent that it could last without the stimulus. Housing is still at the dead lows, jobs continue to be scarce and not growing. The Federal Reserve is stuck between a rock and hard place. If they stop pumping money into the system, the U.S. and possibly the world will fall back into a deep recession and if they continue non stop pumping money, inflation will rip higher. There is no easy answer here and they are in trouble. Do they continue with QE-3, QE-4 and so on? Do they stop pumping the money into the system and have the market fall back down and consumers stop spending?
Talk about a mess and a half. The bottom line is this, as swing traders, we will be playing this market thousands of times in each direction over the next few years. It has been a great start to the new year, it will be a great year. Join the Research Center now. Take the free trial and make some money!
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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