Eveillard – This Fed Manipulation is Incredibly Dangerous
May 1, 2012
With most global stock markets moving higher, oil surging, and the Dow trading at the highest level since January of 2008, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds. Eveillard told KWN that the authorities should not be in the business of manipulating equity prices because it is extremely dangerous. He also discussed the gold market, but first, here is what Eveillard had to say about what is happening with stocks: “This has been artificial stimulation. Savers are being sacrificed today. With short-term interest rates basically down to zero, and long-term Treasury bonds yielding very little, the authorities are trying to push the savers into equities. That’s the wrong thing to do.”
Jean-Marie Eveillard continues:
“The authorities should not be in the business of manipulating equity prices or manipulating any prices for that matter. They should let the markets clear. The Federal Reserve has placed a floor under the equity market, so traders and investors are taking advantage of it.
If there is a floor under the equity market, well, it cannot really go down or at least not by much, it can only go up. Now, to some extent it’s a dangerous game because you don’t want the authorities to try to manipulate investors and traders into doing things they shouldn’t be doing….