correlationstonone:

Because QE is most likely to be realized as a marginal benefit to our heavily-indebted large corporations whereas the actual consumption that would lead to an inflationary environment in commodities won’t be there.

Corporate debt seems to be benefiting heavily from the new money, and it seems silly to bet against the stock market while the debt market is so cheery. You’ve got me there. However, commodities can and have been bid up without corresponding increases in consumption before. Heck, this is going on now. So you are asserting that one trend will break while another continues. Why prefer one inconsistency over another?

On a side note, I assume you’ve read many of the same reports going around about “sell the news.” Kind of a jerk move to make me defend an outside position you are familiar with. Also, can I assume you would not be surprised if a sell-off occurred?

There are fairly significant wildcards still outstanding. Germany just began the process of labeling the US a currency manipulator. Greece continues to do everything it can to resume its fall. An equal amount of liquidity from QE2 can be sucked up by foreclosuregate. A trillion here and a trillion there can really add up.

(Source: crazynutjob)