I would never have thought the bear rally would hang on so long ... then again ... never knew that the feds mandate was not just inflation stability (which was not at risk), and maximizing employment (QE2 has done nothing there nor will QE help), but also helping the stock market.

Those are the Encore's own assessment of the value of QE2 - in other words avoid the panic related to a market crash ... or should we say DEFER and hope the cancer goes away.

Ok ... so manipulating the stock market by the Fed was not part of something I would have believed ... anyone else surprised by the overwhelming manipulation by the bankers? Suppressing the gold price, facilitate the real estate bubble, move on to stoke yet another stock market bubble (albeit more directly this time).

SO WHAT IS THE TIPPING POINT????

IMO - it is very simple .... rising interest rates ... at that point PE-multiples of 13-14 will not be very attractive (and remember corporate profits are good)

When will interest rates rise ?????

When the Fed can no longer add position to their balance sheets .. that is they fund the US debt entirely or the dollar takes a major hit and people realize holding US$'s is a losing proposition ... this is not a sovereign debt issue like Europe, this is the surreptious facilitation of the loss of value of the world's reserve currency.

Herein lies the question ... at what point will the spin doctors indicate the US economy is overheating and interest rates begin a steep ascent .... watch for the signs unless an exogenous event (more likely) stirs the markets overvaluation point.

orgy