That's right, we now know that the reason most of us don't have crystal balls is that the FED is hoarding all of them. Bernanke sees "no bubbles". Yellen says Market is "not massively overvalued". Considering that the Fed completely missed the housing bubble (and in fact gave birth to it), we must deduce that they now have magic crystals in their possession. So obviously THE COAST IS CLEAR! Time to BUY BUY BUY! Just look at all the analysts climbing over each other to upgrade stocks after they have missed the first 50-200% climb (like the guy who upgraded XOM today because he heard Buffett was buying it). And since the Market seems to listen to these guys too, maybe they also now have crystal balls. Otherwise, why would anybody in their right mind listen to them, or for that matter, not do exactly the opposite of what they recommend?
I guess I could be wrong. Maybe Bernanke has just seen that ad on CNBC. You know the one:
Wimpy guy: "I bought the wrong stock AGAIN!"
Sultry honey: "Why don't you try trading commodities? You don't have to worry about PE ratios, CEO scandals..." (as in what could possibly go wrong when trading commodities??)
Wimpy guy: "What do I know about pork bellies?"
Sultry honey: " So trade what you know - you know about oil don't you???" (ditto)
As for Yellen, we only need to ask ourselves what is the next step below MASSIVELY overvalued? Egregiously overvalued? Disgustingly overvalued? Hugely overvalued? Or is it just really overvalued? Whatever, I don't think it is FAIRLY valued, much less UNDER valued...
I think it's time call on Bob... (Marley).
Ha! Thanks for the early morning dose of black coffee. Good stuff!
Posted by: Drew Andersen | Tuesday, November 17, 2009 at 10:47 AM