What
would you do if you were up 23% plus for the year and you were a major hedge
fund trader on Wall Street and 23% plus was the best return for your firm since
1997? In fact it was the best return since you started work on Wall Street over
10 years ago and your end of year bonus was looking very healthy indeed. You'd
give careful consideration to selling part of your positions to lock in some
profit, particularly when there is so much chatter amongst traders on just when
the US Fed will taper and you know the taper will destroy any further rally
higher in stocks. Play it safe I hear you say, sell down some money and lock it
away. That's exactly what many traders will be thinking and to sell a little
makes perfect sense. But I doubt they will.
Greed
is what drives Wall Street and this coming Friday many traders will be happy to
see a poor unemployment number in the US because it means their profitable
positions in the stock market will simply continue to rise in value whilst the
country continues to stubble along.
Whilst
millions of Americans still remain out of work or search for work, and the
official unemployment rate still remains over 7% Wall Street is cashing in with
the best year since 1997. Will they sell down some positions and give us a
correction on the stock market? Not while they are convinced the US Fed is
going to continue to inject the free cash that's been 100% responsible for
pushing up stock values to record highs. If stocks continue on this artificial
trend higher, supported only by the US Fed's free money the stock markets
around the world including Australia run the risk of a very big correction at
some point in 2014.
This snippet of a LTG GoldRock Review comes from the GoldRock Insider Report on Tuesday 5th of November, 2013
No comments:
Post a Comment