It seems like the market has been trying to correct in the past week....but every day that the market opens lower, there is an incessant melt up as someone comes in to BTFD. Along with the typical FOMO of passive US investors, I believe that this is probably a combination of the Swiss National Bank directly buying US equities, and indirectly through the increase of central bank balance sheets across Europe and Asia.
A similar effect is happening in Japan, as hedge funds offload troubled assets to the Bank of Japan. Japan tried to turn off the faucet and slowed their ETF buying, but markets did not like that over the past couple of weeks and they've had to start up their ETF buying again. What happens when the US Fed tries to reduce the size of it's balance sheet and the SNB stops buying US equities?
Submitted November 15, 2017 at 12:10PM by WadeWatts2000 http://ift.tt/2hBwR0Z
