None of the factors that could limit the stock market’s rise are in play right now
by Nigam Arora
The stock market is likely headed toward a new high fueled by borrowing and money printing, European leaders have agreed on a recovery plan that will cost $2.1 trillion. In the U. S., another stimulus package is likely ahead. It is out of fashion to consider how the borrowed money will be paid back. Central banks stand ready to print as much money as they want — there appear to be no constraints on the central bankers, who are not elected.
The momo (momentum) crowd is celebrating by increasingly aggressive buying of the momo stocks. Prudent investors are asking: “Is there a limit?” Let’s explore with the help of a chart.