Higgenbotham wrote:> But I am surprised and puzzled as to why US stocks got over their
> 2011 highs.
I just posted an item on Germany's real estate prices -- going up to
bubble levels (just as everyone else's real estate bubble is bursting)
because Europeans are looking for safe havens for their money.
I think that's what's happening with both American stocks and
American bonds. When the Fed and the ECB pour liquidity into
the marketplace, it has to go somewhere, and those places are
German real estate, American stocks, and American bonds.
It's a real puzzle how this will end. What safe haven will
replace those three, and what will trigger the movement of
liquidity? I can guess, but I really don't know.