The market has soared over the last two months from a level of 1,040 on the S&P 500 to just under 1,190 as of yesterday. It seems deflation fears and double dip recession fears have been erased by better than expected economic and earnings data and an overwhelming confidence in the Federal Reserve's ability to generate inflation and a sustained economic recovery via quantitative easing (QE).
Our view at Brotelli Investments is the equity market will ultimately be disappointed to realize that QE has no inflationary impact on the markets. The dollar is currently pricing in what we believe is an overly optimistic outcome in terms of inflation and the markets currently believe QE will add liquidity and result in more inflation. If investors once again start to seek safety and the dollar readjusts in the coming months, it may serve as a substantial equity market headwind in 2011.
Tuesday, October 26, 2010
Our Executive Team
On the right is our Chief Investment Officer (CIO), Brian Brophy. In the middle is our Chief Financial Officer(CFO), Brett Castelli and I am on the right, our Chief Executive Officer (CEO).
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