American Equity Indices are breaking again record highs. European indices are also reaching new tops every day, and are targeting 2008 records. Japanese stock markets are up an awesome 70% since last summer. In the same time, base metals are reaching new... lows!
Surprising? Not that much I would say. Ben Bernanke and its dear fellow from the ECB and BOJ have been printing contiuously money which in turn flows into financial markets. The economy is not going much better than just 6 months ago. But we know that if anything goes bad, central banks will print money. If the economy recovers, they will print money as well. So why should we worry? You should be completely crazy to sell the market and play against all those piles of cash!
Actually, there are no less than 15 Central banks that cut their rest only in the month of May 2013. Yes, you read it properly. 15!!! And here is the list:
Now the question is how long will those injections of fresh cash last? Borrowing rates of "risk-free" countries are already shooting up!