Stocks High, A Market Bubble? Yes.. Yet Safe For Now
Is there a Market bubble that is going to bust? Not soon. LatestBuzz.info can tell you that there will be no bust, or major correction within 6 weeks from July 3, 2014. Safe for right now … (more details and actual point forecasts below):
The Dow Jones Industrial is at basically at a hefty 17000 points in this the beginning of July, 2014 and with stocks high many experts fear a market bubble is about to burst. Latest Buzz is going to fill you in that for at least a while your plenty safe. The Federal Reserve Central Banking Organization is still using digital billions in their asset purchasing program to continue stimulating the economy. At the same time “The Fed” is keeping interest loan rates at numbers that are approaching 0%. As long as this is in place, there is still a while to go before any artificial bubble actually pops.
The process by which the Federal Reserve is helping the stock market soar and in trying to stimulate the over all economy is being held by a form of something known as “Quantitative Easing”. Essentially this version of Quantitative Easing (QE), or as some call it “credit easing” is the process of creating cash to buy assets in order to hopefully entice investors/buyers. The Federal Reserve Central banking system orders the treasury to print new money (in this case, much of which is just a number). After the money is created it is used to buy government bonds and other other major assets.
The synopsis and primary objective is that the creation of something so easily liquid, is based in hope that the attainable asset supply will basically force some investors into buying, while enticing others to enter the financial markets. The possible downside is that in order to buy, someone must be willing to sell. In the long run ..will buyers out-number sellers or will sellers outnumber buyers is the major part of the equation in which many are concerned. That aspect, along with the controversial impression of printing currency based on no true need is what much of what opponents to the process fear.
Their argument is that not only is the money itself simply paper (in this case it is just as well simply digital figures) backed by nothing, but additionally it is not actually called upon by the state of economy itself. Instead it is injected without a real signal, or situation requiring that. Thus challengers argue that it is not in only artificial in a single sense, but two fold. The QE stimulation, aka “The Feds Bond Buying Program” is indeed a debated protocol these days.
The stimulation is often described as more-over just an artificial monetary circle. The counter points claim that an entity not entirely valid by not being fully part of the United States Government is ordering the printing of money from nothing. The assets are purchased in order to encourage investors to buy, partly based on the fact that billions are already being bought. However it is argued that it is an artificial loop not based on anything solid, or an authentic need. Several experts claim the market has to “correct” itself in coming down to what it should be without the artificial influence. For the most part this true. However even as some indicators are showing anything from a huge pull-back to an actual bubble burst, the cycle has not yet run it’s coarse. In addition, interest rates for borrowing are still at 0%. This is still keeping buyers interested enough in holding things steady enough at the front of the boat, while the Federal Reserve keeps the fires below lit enough.
Gross domestic Product shrunk more than the 1% forecast, to -2.9% in the first quarter of 2014. The release of the second quarter results will not be any sort of home run, but by analyzing world market activities that affect The United States and it’s foreign relations, the second quarter GDP report and will indicate stabilization.
As for the next six weeks from today (Wednesday ..July 2, 2014) there will be no crash, and no major pullback. Though many investors are wary, enough of them will more than likely hold. The market “may” dip to a small degree degree, but it shall be nothing strongly significant, much less catastrophic. In general, the market will remain relatively the same over the course of July and into the middle of August. If any sort of correction, or slide does happen to occur occur it will be by no more than 300 points over the period of a trading week and even that is not probable. Over the next six weeks expect roughly the same market activity. In the mid summer sun of 2014, the market shall continue to hold fairly well (at least for the next month and a half), though not entirely from it’s own accord.
LatestBuzz.info has researched the situation and does not feel the market bubble that some what exists, will bust any time relatively soon. However, many experts say the sharpened pin is already pressing .. See details and their opinions below:
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