Are stocks bubbling over? Time to bail?
U-T EconoMeter panelists look at Wall Street prospects
Roger Showley, U-T SAN DIEGO
Sunday, December 1, 2013
Kelly Cunningham, National University System
"Since the Fed will not taper Quantitative Easing in the next few weeks, the market for stocks, real estate and bonds will continue to rise. However, with the only thing sustaining the markets being the Fed’s massive bond buying stimulus, without the injection of those dollars the markets would collapse. With China recently announcing suspension of their program to keep buying U.S. treasuries, the Fed’s stimulus program is significantly being further strained. This will dramatically undermine the demand for U.S. treasuries and dollars, and cause prices for consumer goods to dramatically rise. Higher interest rates will eventually crush U.S. markets."