BTFD is not the ticker for a new Social Media IPO. It's what you need to do in this centrally planned stock "market". While the FED states full employment and price stability are their dual mandates, I beg to differ. Their sole mandate right now is asset price re-inflation. They think that inflating another bubble will somehow bring back all those jobs that we've lost to technology and over seas. They are wrong, but it doesn't matter seeing how they are hell bent on destroying the dollar and keeping interest rates at obscenely low levels.
What does this mean? It means stocks are the place to be, after all when stocks go up everything is ok..... right? The few Americans who have a decent job meet at the water cooler, and if stocks are up they are happy. They discuss how great a job Obama is doing, because if stocks are going up he must be doing a good job. They talk about the low interest rates and how they can refinance their mortgage for 4%. Stocks are up and cheap, easy money to be had? Life is good.
What they don't realize is those on fixed income are screwed. Savers are screwed. The FED is forcing everyone into risk assets. The CEO at Blackrock thinks that everyone should be 100% exposed to stocks. How is that an investment plan? The FED is once again wrong. Everyone loved and respected Greenspan when things were going well, just like Ben Bernacke now. Much like Greenspan, Bernacke is going to look like a complete fool down the road. But who cares about "down the road". Right now stocks are going higher and every dip must be bought, hence BTFD.
With the FED and its ZIRP until 2014, there is no sense fighting gravity.
Buy the F*cking DIP.
We trade what we see. Every day an hour in we see buying and why not buy there too. This Govt manipulated market is going higher and its either going to make us money or leave us behind. This will not end well, but there is zero sense fighting the trend. Just like QE1 and QE2, QE3 is going to lift the markets to new highs and surpass all-time highs. It won't be because of a healthy economy and full employment. It will be due to the Fed inflating the final bubble. We want to be buying puts before it bursts, but that time is not now. Just BTFD!!