Have The Traditional Markets Become The Next House Of Cards?

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Jeff Sica posted a new Blog on FORBES discussing how the Fed uses the stock market to create the illusion that the economy is improving:

“The traditional market commenced its long road to ruin the moment it was seized by the Government, more specifically by the central bank in October 2011. The problem with the government achieving absolute power and constructing the “old stone building that stands forever,” was that the central bank was intended to be independent, that is until now.”

“The stock market is often considered a barometer of the economy and the economy is usually one of the reasons a candidate will get elected. The problem is what would happen if the vast majority of the surge in the market was Fake; a manifestation of an insanely inflated Fed balance sheet; the reflection of government propaganda of just how great the economy is doing? ” 

“What better way to achieve Frank Underwood’s type of power than to control the stock market through the central bank. In November of 2013 Janet Yellen gave a “Bernanke Style” answer, “the US stock Market is not in a bubble judging by traditional metrics.”  She was then asked if there was a federal role to support the stock market.  Her one word answer, “No.” The irony of “no” is if it was not a federal role to support the stock market than why would she say that “the US market is not in a bubble?”  Her statement was either intentionally or unintentionally designed to “obscure realty.” The reality is that the Fed has taken complete control of the stock market. The Fed gets to decide when asset prices are in A BUBBLE.”

To read the rest of this new blog post, please click here.

Jeffrey C. Sica is the President and Chief Investment Officer of Sica Wealth Management, LLC (“SWM”), an SEC registered investment adviser that maintains a principal place of business in the State of New Jersey. The information presented herein may not be suitable for all investors, and no portion of this commentary is to be construed as a solicitation to buy or sell a security, or the rendering of personalized investment, tax or legal advice. Past performance does not guarantee future results, as there can be no assurance the views and opinions expressed herein will come to pass. Investing involves risk, including the potential loss of principal. Please consult a financial professional prior to investing.