The Leaky Bucket, Trampoline, and Fundamental Disconnect

Lee Adler and Russ Winter discuss why the market has characteristics of both a trampoline and a leaky bucket. Russ illustrates and laments the disconnect between the fundamentals and the market action, calling it the worst he’s ever seen. He gives a time perspective for when he expects reality to bite, which Lee disagrees with and explains why. Subscribers, click player below (visible on Radio Free Wall Street main site only) to listen to podcast, or use this link to download.

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2 comments for “The Leaky Bucket, Trampoline, and Fundamental Disconnect

  1. Fillmorehagan
    December 7, 2010 at 8:34 am

    I think Russ and Lee may both have it wrong re: how long this rally will persist.

    Clearly a big market break is not imminent, but the idea that the Fed can continue pumping almost forever is even more mistaken IMHO.

    The key is commodity prices. If these rise high enough the Fed will come under huge political pressure to at least tap on the brakes. $100 crude might well be the tipping point.

  2. December 8, 2010 at 10:47 pm

    I agree. I never meant to imply that it would go on indefinitely. It will stop for exactly the reason you cite, or else something else will go wrong.

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