I think anyone expecting the commencement of QE3 tomorrow will be sorely disappointed. Bernanke only needs to keep the option "on the table" at this stage and the market gets driven higher. Seems to me that QE3 will be broken out when the next major crisis hits - given that each round of QE has a diminishing effect you'd want to be pretty sure that you were breaking it out at the appropriate time. Even though things are shaky at the moment it's not blood in the streets!
Markets in the US are at their highest levels for 4 years - It's nearly been 4 years since the GFC hit! If I had more gumption I'd be liquidating and sitting on the sidelines for a potential meltdown in September or October. I'm not, instead I'm saving cash as hard as I can, keeping it ready to plough in to more shares if the opportunity arises.
CCU is a great company without the prospect of QE - let's look at the fundamentals as they stand - heading into full production with margins close to 200% at current prices. A lot of acreage to explore and plenty of scope to improve the JORC status from Inferred to Resource, with the facilities already in place to double production by plugging in another circuit into the process plant.
CCU Price at posting:
71.8¢ Sentiment: LT Buy Disclosure: Held
