Yesterday he summed up the situation:
Seasoned investors are not in love with the current bond or stock markets. The reason is that they know the markets are "rigged" or manipulated.
For instance, at present the Federal Reserve is --
(1) Manipulating the bond market by buying $85 billion worth of bonds a month.
(2) Manipulating interest rates -- keeping rates low -- by buying bonds, thereby boosting the price of bonds, which in turn, pressures interest rates to lower levels.
(3) By keeping rates low, the Fed is manipulating (pressuring) investors by forcing them to buy stocks (in buying stocks investors hope to capture dividends and at the same time create profits through rising stock prices).
Because of the widespread manipulation, many investors prefer to stay out of the markets (they fear the Fed might suddenly back out of its manipulation game). After all, the Fed's balance sheet is over $3 trillion dollars, and that must worry Bernanke and the Fed's voting members.
How long can they keep it up? Your guess is as good as anyone else’s. One thing is clear: you do not want to be holding any of these “assets” when the Fed takes away the juice.