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Richard's Remarks


 Question -- With so many potential disasters on the horizon, with Europe's recession and the Fiscal Cliff in the news daily, how do you explain the stock market's extraordinary calm and the market's ignoring of all the current potential troubles?


Answer -- The hedge funds, the mutual funds and the pros have had a difficult year -- with not much to show for their work, at least so far. Most fund managers can't afford to be out of a playable rally. So the funds and pros figure that they'll play this rally while the playing is good. But very importantly, they are quite aware of the so-called "Bernanke put." The players figure that if anything goes wrong, such as the stock market tanking, Bernanke will go into a printing frenzy, and perhaps the Fed will even buy Dow stocks in order to hold up the market. Bernanke is terrified of deflation or ... Log in or subscribe to continue reading.

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