STOCK MARKET WATCH -- Thursday, 21 February 2013

[Hotler]

18. 10 big worries about this market

Can we rally on?


Over the past few weeks, I've been one of the few voices calling for caution and even cynicism in the face of the stock market's push to multiyear highs. It's patently obvious what's happening: Out of desperation, central bankers are using currency manipulation to bolster stocks in a last-ditch attempt to stave off a recession that's already hitting in much of Europe, Japan and, soon, the United Kingdom.

Why are they scared? Because the wounds from the last downturn have yet to heal, and government finances, which blunted the pain of the 2008 wipeout, are tapped out. Of course, this strategy won't work. There is already chatter of a 1930s-style "currency war," with the recriminations and trade protectionism that inevitably follow. And, as happened with cheap-money-fueled stock rallies in 2011 and 2012, the economy will buckle under the pressure of higher energy prices. Gasoline has already hit record levels for early February.

http://money.msn.com/investing/c_galleryregular.aspx?cp-documentid=250511453

Have a good day everyone. Snowy and shitty here in Denver.