Junk Glistens Under ‘Bernankecare’ as Worst Stocks Win

[n2doc]

By Nick Taborek & Mary Childs

Carl Giannone says he’s given up hunting for quality stocks. Now he’s simply riding the wave of upward momentum in the U.S. market.

“It’s a game of musical chairs,” said Giannone, who manages a team of stock pickers at T3 Trading Group LLC in New York. “You just want to make sure you can sit down.”

The Federal Reserve’s near-zero interest rate turns five years old next month, the longest period without an increase in history. Coupled with more than $3 trillion of asset purchases, it adds up to “Bernankecare,” said Joshua Brown, chief executive officer of Ritholtz Wealth Management in New York. And it’s causing parts of the market to behave strangely. Stocks of companies with weak balance sheets are rising twice as fast as stronger ones; junk borrowers get rates lower than their investment-grade counterparts did before the credit crisis; and initial public offerings are doubling on their first day of trading.

While in the minority, some investors say prices have climbed so high it’s possible to look ahead and see an ugly end. Laurence Fink, chief executive officer of BlackRock Inc., the biggest U.S. money manager, said in an interview with Bloomberg Television on Nov. 12 that he feared a bubble and the Fed ought to quit buying so many securities.

more

http://www.bloomberg.com/news/2013-11-19/junk-glistens-under-bernankecare-as-worst-win-in-stocks-bonds.html

[snooper2]

1. Don't even think you can start putting "care" at the end of names now...

Not going to happen, we already have to deal with everything turning into a "gate"-


Time to nip this right in the bud!