If you look at the headlines of financial publications today, you will see a picture which at any other point would have created a crisis of biblical proportions in the markets. Geopolitical tension in the Middle East is breaking records, oil (CLK26) quotes are pricing in the risks of blocking key transport arteries, and the U.S. Federal Reserve is keeping interest rates at high levels.
At the same time, American stock indexes demonstrate striking stability. Any correction is bought up with phenomenal speed, and the bears have repeatedly found themselves ground up by algorithms and capital professing the “Buy the Dip” strategy. But here is the caveat: it is important to understand the psychological factor, as the markets found themselves literally infected by growth. Investors feel infallible, and therefore, the bears right now can do absolutely nothing with the American market.
