Salient to Investors:

Ethan Harris at Bank of America Merrill Lynch said central bank actions have clearly been a major factor in the market rally.

Larry Kantor at Barclays said a modestly growing economy with depressed cyclically sensitive sectors is a relatively stable and safe environment, and when combined with a central bank committed to aggressively supporting growth through higher asset prices, makes for a very attractive environment for taking risk.

Lakshman Achuthanat the Economic Cycle Research Institute says the US is already in recession, and Fed actions won’t change that – the economy is going to have to ride out the business cycle. Achuthan said Fed actions have been increasingly ineffective and the relationship between the economy and the stock market is complex – it’s not always clear whether the market is predicting the economy, reacting to it, or responding to other factors.

Robert Rodriguez at FPA says the market is overextended and is reducing its stock exposure, and says another credit bubble is likely if the central banks persist in trying to prop up the global economy. Rodriguez says the fundamental problem in the US can’t be solved by the Fed.

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