Newsletters - Past Issues

Ugh this is not NORMAL!  But look for the Euro Central Bank to add even more soon, perhaps just a few days an announcement will come!

Marc’s Notes;

Warnings about a market fall but other than a brief correction I still am of the opinion the market will have one direction (with possible brief scary falls) and that direction is up. Until the Feds and the world’s central banks back off their QE (money printing) schemes, all those billions (if not trillions) will find its way into the stock market. Although our central bank is tapering BACK their QE, there are many issues still in play. Our Fed is tapering BUT countering some of the effect by swapping short term debt for longer term debt. It is complicated and hard to explain but the remaining “asset purchases” they are performing (the ‘untapered’ amounts) a “twist” of sorts similar to the “Operation Twist” you may have heard about. Although they are buying less amounts as they taper of debt, they are buying more LONG TERM debt, which affects interest rates more efficiently than the mix of short and long term debt they WERE buying. Yes, it is complicated, but know this: the Feds know every trick in the book, and are using them to counteract their taper. It is why we are not seeing a lot of market volatility as they taper. Meanwhile the Euro bank is set to do even more QE AND go negative on their interest rates. Since the central banks and the global economies are interconnected, when we taper, the Euro banks “untaper” and the net effect is zero.

Watch for Mario Draghi, the President of the European Central Bank to announce more QE and even lower interest rates. This he will do to offset our tapering here.

Net effect: when we taper here, they print more over there. A global game of monopoly money shenanigans.