The recent rally in stocks is simply a symptom of Federal Reserve malfeasance. Take a look at The Phony Stock Market Rally from Jeremy Jones (no relation) on Youngresearch.com.
In the article Jones writes:
The S&P 500 has been on a tear since the Fed first started floating the idea of quantitative easing 2.0. Since August 31, the S&P is up more than 11%. The gains are of course nice to see, but the rally is a phony. Stock prices are not rising on improving fundamentals or cheap valuations. Stocks are rising simply because investors are anticipating that the Fed will print more money.
With the Fed cranking out dollars, look for this trend to continue. If the chart in Jones’ post is enough for you to believe that Fed policy is having a terrible distorting effect on U.S. markets, I’m not sure what could convince you.
We could be witnessing the dawn of a new currency war, created by Federal Reserve dollar devaluation.