Here's an argument in favour of the Fed providing additional
monetary stimulus (new money printing) at their meeting this Thursday…this is
purely unbiased…I'm not in favour of or against further stimulus.
The
following two graphs show total percentages gained to date for 2012 (includes
September 11th closing data) for the six Major Indices and the nine Major
Sectors.
The next two graphs
show percentages gained/lost for only Q1 of 2012.
The next two graphs
show percentages gained/lost for only Q2 of 2012.
The next two
graphs show percentages gained/lost for only Q3 of 2012…of course Q3 is not
finished until the end of this month.
If you're a fund
manager who bought at the beginning of the year, sold at the worst levels of Q2
and have not participated in the Q3 rally, so far, your fund is underperforming
miserably. You're going to be praying for the Fed to provide additional monetary
stimulus at this next meeting so that you can jump in with both feet and buy at
inflated price levels and hope that everyone else does, too…otherwise, you're
probably preparing for chaos.
Accurate take on things? Only fund
managers in that position can answer that, especially after Thursday. We'll all
see the market's reaction for ourselves over the next days/weeks ahead.
