Wednesday, January 18, 2012
I would like to thank Mike "Mish" Shedlock for these three charts. Look at the money the Fed has put back in the market in the past 5 years and where it's sitting, getting .25% interest and not being lent out. Banks take the money and park it at the Fed. There will be a day of reckoning in this country in 2013-2014. Here I would like to add the Q ratio of the replacement Value of the SP 500 and the market value of the SP 500. Here is a chart supplied by Doug Short to illustrate. What does the last chart suggest? I believe the market is overbought and due for a correction, but only time will tell if I'm right or wrong.
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