How Ben Bernanke Is Literally Herding Investors Into Stocks

By Daniel at 6 November, 2009, 9:30 am

Link: http://www.businessinsider.com/how-ben-bernanke-is-literally-herding-investors-into-stocks-2009-11

“Bubbly Ben has engineered one of the most incredible liquidity driven rallies in the history of the stock market. The reflation trade, made famous by John Paulson, has been a huge winner for investors prescient enough to engage in it. The reflation trade has been primarily due to the prodding of monetary policy. After all, they don’t call it a “stock prod” for nothing. Ben Bernanke is literally herding investors into risk assets as they watch their cash produce less than lackluster returns at 0%. Investors remain over-allocated in cash and the obvious winner of this cattle prod market is equities (regardless of the fundamentals).”