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The whole world of fundamental and technical analysis seems to be in a state of
chronic confusion – confounded by this seemingly trendless stock market….[Usually] the stock market possesses the ability to forecast coming events but the periodic spates of Fed stimulation have thrown some sand into the stock market’s delicate machine….Thus, we see the stock market ‘up on Fed-created stilts’ and at the same time we see depressing economic news in the newspaper headlines. Meanwhile, Treasury yields are sitting on near-record lows. We’re seeing a strange paradox here.
So says Richard Russell in paraphrased comments from his recent interview with Eric King of King World News brought to you by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). This paragraph must be included in any article re-posting to avoid copyright infringement.
In further edited comments (the entire interview can be read here) Russell goes on to say, in part:
The Wilshire 5000, which includes almost all stocks traded on the NASDAQ, the Amex and the NYSE, is now below the 2011 peak reached in May, 2011 – caught in a standstill between two opposing forces:
- The positive force is the hope of additional Fed stimulative action.
- The negative force is the primary trend of deflation and over-production.
It is my opinion, however, that deflationary and deleveraging forces are still in command, and all the Fed’s manipulations are, and will, fail to turn the bear market into a new bull market.
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Editor’s Note: The above may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
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