Lee Adler sees higher prices ahead for stocks, in a bubblish way.
Bernanke Wanted a Stock Price Bubble and Now He Has One
Courtesy of Lee Adler of the Wall Street Examiner
In November 2010, Ben Bernanke wrote in the Washington Post that “…higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.” Notice that he put stock prices first. Bernanke wanted a stock price bubble, and he’s gotten what he wanted. While a few screening measures weakened slightly today suggesting a possible pullback, cycle projections rose. They point to much higher levels over the next 4 months.
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