Today's Market
by Dr Invest

More promises! First, Bernanke and then, Draghi reassure the markets that should signs of a weakness occur, they will be "johnnie-on-the-spot" with cash in hand. The Central banks are signaling, "let's keep doing business as usual". We will tell you that we are going to stimulate the market when we think it needs money and you just keep investing.

Doesn't this sound like a really good idea to you? I hope not. With your own investment money, you are paying to inflate stock prices that already have no basis in value. Who ever heard of stock prices rising 12% with economy in the negative. Eventhough the FED projects growth for 2012 at 2%, many economists are concluding that we have not reached real positive growth. The argument will continue, but even the FED acknowledges that at best our economy is weak.

Here is the report: Investor sentiment received a lift on Friday from U.S. Fed Chairman Ben Bernanke, who said the Fed has room to deliver additional monetary stimulus to boost the U.S. economy. This promise that "I got bullets in my gun." raised the DOW .77%. He didn't say he would use stimulus, but that if it was warranted he could use stimulus.

I suppose that we will see rise in the market, just as I had predicted a few day ago. And as I suggested, the promise of stimulus will contine to influence the market. For now, we continue to press forward into a market spurred higher by empty promises. Whether promises will return us to a bull market is questionable.

My guess is that we will begin a serious downturn in September, but who knows how powerful one little promise can be.

(Note:The above information is for entertainment purposes only and not to be used a investment advice.)