Now that we have an effective Greenspan free money 1% Fed Funds rate, I think we’ll see enough cash deployed in November to keep this short term "Trade" rally alive. Consensus is on the other side of that idea. The bulls have guns, and the bear shorts are on the run. This is all good for stocks.
Bernanke has acknowledged that the economy has slowed "markedly" and that "risks to growth remain"… gee, thanks. Since he has been looking for inflation to slow for well over 2 years, I don’t think what he thinks on inflation matters.
At 1% interest rates, I don't get paid to be in cash. Every asset class has time and a price. Look for us to continue to decrease our position in US Cash, and increase our exposure elsewhere. The US Dollar is getting whacked again today. We remain short it via the UUP etf.
Our immediate "Trade" target for the S&P500 remains 1016.