Dow At 14000 (Pt.2) - The Markets Are Going Higher!?!

You heard it here, the markets are going higher!  Okay that was in my best Jim Cramer voice.  In reality, I am actually a little nervous about the markets.  I guess I start to get nervous when family and friends usually begin to take more interest in stocks.  Usually by the time my sister is talking about the markets it means that its probably moved significantly HIGHER and she along with other non-investors are late to the party.  If you followed my last post on the Dow @ 14000 I gave you a video from billionaire investor, David Tepper.  That video was from September 24, 2010 and in that video he indicated WHY the markets were going to go up. Since September 2010 until now, the markets have soared up over 31%.  Yes believe it or not, I actually listened to this video when Tepper made his revelation that markets would go up because the Federal Reserve was continuing quantitative easing (QE). I won't bore you with what QE means, but my best analogy is he was saying the Fed is 'Making It Rain' in the club.  And think about what happens to the person that benefits when its raining money in the club...the next day they go shopping.  Well when the Fed 'Makes It Rain' on our economy guess what goes up, yes: STOCKS.  Which is why he was telling us to buy back then.  So in my mind...if you weren't picking up stocks back then you are a little late to the party and you do need to be mindful of this.

The next question is where do we go from here at Dow 14000.  Well listen to our friend David Tepper on December 17, 2012 about where he thinks the markets are headed now.


Listen for the following beginning at 2:02 in the video:
- He talks about tailwinds or good things going for the economy (Housing, Car Sales)
- There is 1 Trillion Dollars Worth of Stimulus Coming from the Fed
- The Fed will keep it up until the Unemployment (Jobs) Rate Drops to 6.5% Target

I would say he is in the camp of markets going higher until the Fed stops. And considering that the Job Rate is at 7.9%, maybe the markets go HIGHER.  But one thing I've learned is markets don't go straight up...so tread carefully.  But he's not alone, my ears perked up when I heard that Ray Dalio shared a similar point of view...stay tuned.