PAPER: Dow Jones Speeding On Fed Steroids, SocGen: Markets Set For ‘Watershed Moment’ When Investors Frontrun Fed Exit, Mark Hulbert: Too Many Investors Are Getting Carried Away And Overlooking A Depressing Fact, CNN: America’s Middle Class Is Losing Ground
March 5th, 2013
PAPER: Dow Jones speeding on Fed steroids
Like all good things, the performance-enhancing policies must come to an end.
Four years after the stock market hit bottom, it is flirting with an all-time high. On Monday, the Dow Jones industrial average enjoyed its second highest close ever and was just 37 points away from a new record — more than double its level during the dark days of March 2009.
The turnabout is testament to healthy corporate profits and the resilience of America’s free enterprise system. And it’s a huge relief to workers whose 401(k) plans are tied to equities. But the risky little secret of the rebound is that it is powered in significant part by the easy-money policies of the Federal Reserve, which must one day end…..
Markets set for ‘watershed moment’ when investors frontrun Fed exit: SocGen