For those that are totally confused about the market's continued climb, despite the headlines and negative economic news, please read and take to heart the following quote:
"There is nothing more important to the markets than what the Fed is doing and is going to do. Nothing. This is applicable to both the bond and equity markets and to all classes of risk assets. When you are the only American institution allowed to print money then you are the only American institution that cannot be denied and so today, I focus on what these people are doing."
- Mark J. Grant Chief Global Strategist, Fixed Income Managing Director B. Riley FBR Inc. & B. Riley Wealth Management Markgrant@Bloomberg.net
While this cannot continue forever, history strongly suggests that investors should not fight the Fed. And because of, not in spite of the current problems, including a potential new cold war with China, the Fed is very much involved in keeping the economy afloat. Printing money has always been a pretty good strategy for inflating the financial markets in the hope that they can provide a lifeline to the economy. It may not be pretty, but it looks like this rally has legs.