By Chuck Gibson
I have to believe you are as tired of hearing about it as I am of speaking about it but once again this week’s news was all about the FED chairman.
All FED chairman news, all the time. I promise to move on to new topics next week.
It looks as if we can finally put this one in the books …. for now… and move on to other things but in case you didn’t hear, last week the FED chairman finally unleashed the Kraken . He spoke of the “U” word. I hoped that word would never be vocalized by a man with controls of the printing presses (also was it to thumb his nose to his Republican detractors) he has promised UNLIMITED money printing. Yup, UNLIMITED. The markets reacted as you would expect an addict would if given free drugs. Euphoria erupted and the markets did a moonshot northward. Precious metals outperformed but stocks also participated enthusiastically. So much so that they are in extreme overbought territory something that happens about once a year (4 times in the past 5 years excluding now). The chart below (click on chart for larger resolution image) shows those occurrences and what has happened subsequently; all were followed by declines, all but one was more than 10%.
