Economic Charts

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Tuesday, September 28, 2010

Does QE Create Opportunity in the Markets?

David Tepper believes that their is opportunity in the government intervention in the markets.  He took advantage of the FED TBTF bank bailouts and made a bundle.  He believes that the FED tells you what you should do when it puts statements in writing (when in writing the FED cannot legally not do it).  He also states that QE will be the governments attempt, in the short run, to pump up the markets further, which will create opportunity.  Is this an environment to go in for the long haul, I don't think so and neither does he.  If you have the stomach for it and keep up with written FED statements and possible turning points, then you may do pretty well, if not you may lose a bundle when it turns.  For those not interested in this ride, just be aware of where the money is coming from that is bolstering the stock market.

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