Here is an issue that government monkey business forces you to think about even if you have the right trading strategy: Chaos:
“Viewed objectively, the central banks are trying to push up asset prices using quantitative easing and the portfolio rebalancing effect. The resultant rise in asset prices based on this effect represented a potential bubble—or at least a liquidity-driven event—from the start. The question is whether the real economy can keep pace with asset prices formed in those liquidity-driven markets. If it cannot, higher asset prices will be considered a bubble and will collapse at some point. The resulting situation could be much more severe than if quantitative easing had never been implemented to begin with.”
I hope we don’t look back at all of this government intervention as having created a larger Ponzi scheme than without–what an awful thought.
