Originally Posted By: SoCalGangs
Most of what goes on in the stock markets these days has to do with what the markets expect the federal reserve to do. The fed was acting as if rate hikes were coming and There will be no More QE due to a supposed recovery. That alone was enough to shake things up and make the markets go down. I highly doubt the Fed will actually hike rates meanwhile the market crashes.. I expect them to return to more QE and low interest rates. Flooding the market with easy money may very well prop things up all over again..but how long that will continue to work, there's really no way of knowing.


SoCal, I wouldn't read that much into QE when doing due dilligence on a stock and the stock exchanges. The reason why is because even before most people even heard of QE, US Corporations were already sitting on top of a mountain of 2 Trillon dollars in cold hard cash. Not equity, or capital gains. Cash. They simply refused to invest it for expansion.


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