Club Mulgoa

Thursday, September 15, 2011

Stock market rally

Seems the markets rally because central banks pump more money into the banks. Not because the stocks have become more profitable. Not because economies are doing well. All the basic problems are still there. Greeks in Greece don't want to work hard. US still spends like there is no tomorrow. Chinese yuan is still undervalued. Japan is still struggling after years of bad economy and recent natural disasters.

So markets jumped because banks got more money to lend? Hence gold fell. I am a patient investor.

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