THE EASY MONEY ANTE IS UPPED

“AND THE EASY MONEY ANTE IS UPPED”

 

By Gary Kaltbaum-July 14,2016

 

We just wanted to repeat what we just told you.

 

Do not shrug off an 18 month breakout of major indices. They typically work. Then combine the fact that mutual funds and pension funds have 11% cash, a gargantuan amount, and you have a lot of ammo that has to come off the sidelines as markets move higher. There is always a chance the breakout can fail and the market tucksits head in like a frightened turtle…but as of this second, that ain’t happening. Bears are scratching their forehead as to how this can be happening. We will give you the same answer we have been giving you for years…a renewed ramping up of maniacally easy monetary policy.

 

In case you did not know,

 

The Bank of England has announced more rate cuts…notice the S on the end of cut. But that is pedestrian because:

 

The ECB is buying up corporates, junk and even the cracks in the sidewalks. German 10 year yields are now negative. Who the hell would lend money for 10 years and get nothing? Well, those that believe the printing will continue and negative rates will get more negative. Keep in mind, these people are buying their own bonds with negative rates.

 

The BOJ, in the wake of Mr.Bubble’s visit, is now prepared for “HELICOPTER MONEY!” Frankly, that can mean anything at this point.

 

And lastly, a Fedhead with the last name Mester came out yesterday also saying that we can resort to “helicopter money” if need be. Unreal!

 

Bottom line…the ante has been upped and in ways unimaginable. We suggest not arguing unless the breakouts fail. So far earnings have been blah but as usual, better than expected. We get another gap to the upside this morning.