Chris Lau - Seeking Alpha

Saturday, January 10, 2009

Market Recovery in 2nd Half 2009

There have been some predictions from professional analysts who claim that there will be a recovery in the stock market. This is contingent on a "relief" plan by President-elect Obama to the tune of 1 Trillion dollars (I suddenly get a flashback of the Austin Powers scene where Dr. Evil asks for 1 Trillion zillion billion billion dollars).

There is no doubt that printing money will result in the stock markets moving higher. The money must be moved somewhere. The market cannot sustain having so much money flood the markets. This boost will be very short term. Perhaps 2009 is the year of a stock market rebound, but we should all know by now that nothing in life is free. If it is free, there is a catch to it.

If it's too good to be true, it probably is.

Peter Schiff has a very good argument on what will happen to the U.S. Treasury market (currently in a mini-bubble):

Another video. I wanted to post it because I like the music, too: