The Down Range Forum
Member Section => Down Range Cafe => Topic started by: rojawe on November 19, 2009, 04:40:42 PM
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"The Illusion of Prosperity": U.S. Destined to Lag Rest of the World, Peter Boockvar Says
Posted Nov 19, 2009 09:00am EST by Aaron Task in Investing
Related: FXI, PGJ, HAO, GLD, EEM, GDX, RTH
"It's dangerous to be short this market," says Peter Boockvar, equity strategist at Miller Tabak.
Despite a penchant for bearishness, Boockvar says the rally can continue as long as the Fed keeps rates at zero.
"When you cut rates to nothing you're encouraging people to take risk," Boockvar says. "As long as asset inflation is [the Fed's] goal, the market could go higher but there are obvious consequences," including inflation, as discussed here.
The Fed is trying to create "the illusion of prosperity" by fueling asset price appreciation, Boockvar says, staying true to his reputation as a deficit hawk. Even if the U.S. stock market keeps rallying, "non-dollar assets" like commodities and emerging markets will continue to outperform, he says.
Unlike the U.S., emerging markets are "not weighed down by enormous debt levels" and local consumers are "much better off" than their American counterparts, the strategist says, expressing a strong preference for China
:'( ???
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This is the result of breeding a welfare class, while wasting billions on a self defeating "war on drugs", more billions in "Aid" to countries that hate us while doing everything possible to drive manufacturing jobs out of the country and refusing to enforce our borders. In short, liberal stupidity.
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"The Illusion of Prosperity": U.S. Destined to Lag Rest of the World, Peter Boockvar Says
Posted Nov 19, 2009 09:00am EST by Aaron Task in Investing
Related: FXI, PGJ, HAO, GLD, EEM, GDX, RTH
"It's dangerous to be short this market," says Peter Boockvar, equity strategist at Miller Tabak.
Despite a penchant for bearishness, Boockvar says the rally can continue as long as the Fed keeps rates at zero.
"When you cut rates to nothing you're encouraging people to take risk," Boockvar says. "As long as asset inflation is [the Fed's] goal, the market could go higher but there are obvious consequences," including inflation, as discussed here.
The Fed is trying to create "the illusion of prosperity" by fueling asset price appreciation, Boockvar says, staying true to his reputation as a deficit hawk. Even if the U.S. stock market keeps rallying, "non-dollar assets" like commodities and emerging markets will continue to outperform, he says.
Unlike the U.S., emerging markets are "not weighed down by enormous debt levels" and local consumers are "much better off" than their American counterparts, the strategist says, expressing a strong preference for China
:'( ???
They are creating a bubble. Right now they are borrowing for zero and taking it overseas to get a greater then zero return. As soon as the rate rises, we are all screwed.
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This is the result of breeding a welfare class, while wasting billions on a self defeating "war on drugs", more billions in "Aid" to countries that hate us while doing everything possible to drive manufacturing jobs out of the country and refusing to enforce our borders. In short, liberal stupidity.
DITTO
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I don't want to rain on their parade either, I'd much rather piss on their graves ;D
Drink up, it's time to baptize the socialists. ;D