World’s Central Bankers Fuel Risk-Off Market Sentiment

World’s Central Bankers Fuel Risk-Off Market Sentiment

$PG, $WHR, $GE, $GM, $SPY

“I’m most gloomy about the prospects of the global economy, but it does not mean that markets will go down,” Marc Faber says thanks to “mad professors at central banks” who will implement another round of QE (quantitative easing) in the near future and fuel more risk-off participation.

Mr. Faber said in in interview Thursday, that US stocks could soar to new highs, boosted by GE (NYSE:GE), and General Motors (NYSE:GM).

Mr. Faber is also Bullish about Indochinese countries such as Vietnam, Cambodia, Laos and Myanmar. “This region could grow at easily 6 to 8% per annum for the next 10 years, provided there is peace,” he said.

“You could have Zero interest rates and stocks go down (in the US),” Mr. Faber said. “So even at these very low interest rates, something can happen and dampen the enthusiasm for equities.”

Other prominent economic experts agree the government is to blame for driving the US economy in the fast lane to disaster. And that is because Washington does not understand what went wrong in Y’s 2007 and 2008, so the Fed, the White House and Congress are recreating the very same conditions for another financial bubble.

If it pops expect a replay the same traumatic effects as occurred during the Tech bubble in Y’s 1999 and 2000.

Government and politicians have no learning curve and continue to fuel the markets.

The conditions of financial wreckage are reappearing. This is why congressional Republicans must put up a fight on the debt ceiling by requiring more budget discipline as a condition of higher debt levels.

On the market

S&P 500 earnings for the frame are now expected to have declined a more modest 2.8%, compared with a decline of 4.9% forecast at the start of the reporting season, according to the data.

Among the gainers, Procter & Gamble (NYSE:PG) rose 2.9% to 77.03 after its profit beat estimates.

On the Southside

Not all of Friday’s earnings news was positive

Shares of Whirlpool (NYSE:WHR) dropped 8.7% to 145.90 after executives said currency would subtract $2.5-B from the appliance-maker’s annual revenue. Whirlpool lowered its Y 2015 expectations even as it posted higher-than-expected Q-3 earnings.

Overseas, the PBOC (China’s central bank) cut interest rates for the 6th time since November in another attempt to jump-start a slowing economy.

NYSE advancers outnumbered decliners 1,806 to 1,252, for a 1.44-to-1 ratio, on the NAS 100 1,872 issues rose and 956 fell, for a 1.96-to-1 ratio favoring advancers.

The S&P 500 posted 54 new 52-wk highs and 14 lows; the NASDAQ recorded 133 new highs and 65 lows.

Volume: About 7.6-B/shares changed hands on US exchanges, above the 7.3-B/share daily average for the past 20 trading days, according to the data.

Have a terrific weekend.

HeffX-LTN

Paul Ebeling

The post World’s Central Bankers Fuel Risk-Off Market Sentiment appeared first on Live Trading News.