Very, Very Important Information

I told you all that liquidity was in the stock market...or, you could call it inflation.

Apparently, the latest scheme is to buy your own stock to drive the price up...no conflict of interest there...no incentive problems at all...yup.

This article is a must read if you want to understand the markets bounce off the March 2009 lows.

http://www.marketwatch.com/story/the-real-story-behind-the-market-boom-2011-06-29

Man, this guy just answered a VERY important question: What was behind this latest stock market rally?

Turns out it was corporate America buying their own stock with borrowed money. (QE 1 & 2 hard at work - cheap govt $) This is fine if your stock isn't overvalued, but if it is (and insiders are not buying, so most of them see their own companies as overvalued!) you are SCREWED when the market corrects.

I had a hunch it was something like that, (because the fundamentals haven't changed & the market increase is not based on REAL growth) but this guy did the work, solved the puzzle, and has provided us all with free, valuable information-what a rare opportunity-take it!

Leverage increases risk, sometimes exponentially. This means the current risk in the stock market is HUGE.

Beware.