Next Week on Wall Street: Bad News is Good News

Published: October 08, 2010 | 4:58 PM

This week Jerry discusses the very clear change in sentiment of market investors that bad economic reports appear to be better than good economic reports because it solidifies the belief that another round of government intervention in the form of more Quantitative Easing is coming very soon.  This will continue to destroy the value of the US dollar and give the appearance of rising asset prices including stocks and commodities.  However the reality is these assets are priced in dollars so as the dollar declines those asset prices rise in nominal terms.  This is good for stock investors - but potentially devastating for the middle class.