Why Stocks May Keep Falling: 'The Sugar High Will End' - US Business News - CNBC
"The market has been propped up by these sugar highs," he said. "QE half-trillion a year is not sustainable in the long run. The sugar high is going to end because Barack Obama is going to raise revenue and cut entitlements. The combination of the two cannot be good for the economy."
"What's more for investors, the landscape could be changing in other ways.
Investors have watched stocks all rise or fall together — a trend called "correlation" — as Fed policy has shaped market behavior.
Now, that could be changing as stock-picking comes back in view and investing is no long as easy as picking the right index fund."
"The market has been propped up by these sugar highs," he said. "QE half-trillion a year is not sustainable in the long run. The sugar high is going to end because Barack Obama is going to raise revenue and cut entitlements. The combination of the two cannot be good for the economy."
"What's more for investors, the landscape could be changing in other ways.
Investors have watched stocks all rise or fall together — a trend called "correlation" — as Fed policy has shaped market behavior.
Now, that could be changing as stock-picking comes back in view and investing is no long as easy as picking the right index fund."
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