Money is cheap!!!

The 10 year treasury note yield is down to 2.6%. 

For 10 years!  The big money is putting their money out for 10 years, with a mere 2.6% interest. I think this is the most significant piece of data that tells the current economy: Money is cheap!

Cheap? It means that, there is too much supply but too little demand. Too much supply of money, because the governments are trying their best to boost the economy. Too little demand for money, because there has been an over production in many sectors. We do not need captal to build more. We do not need capital to manufacture more. We have had enough. In fact, we have had too much.

Of course, as an investor, the focus is: what would happen next?

What would happen next with too much money, but too little demand for capital?

I think those few enterprises making things that people still want would benefit substantially with the cheap money.

As for S&P 500, I think it would fructuate between 1040 and 1200 during the next 2 months. If it is closer to 1040, you should have more stocks than cash. If it is closer to 1200, you should have more cash than stocks.