NEW YORK ( TheStreet) -- July ended with a new all-time high for the Dow Industrial Average at 15,634.32 and with a new multi-year high on the Nasdaq at 3649.35. QE-induced bubbles continue to inflate the stock market and many individual stocks. The ValuEngine valuation warning continues with 76% of all stocks overvalued and with 43.5% overvalued by 20% or more. On the technical side, the weekly charts for the major averages are becoming overbought once again led by the Nasdaq and Russell 2000.Fed Chairman Bernanke's policy experiment with a 0% federal funds rate and continuing quantitative easing has created a zombie economy. Savers have no discretionary dollars to spend, consumers are taxed with high gasoline prices, the housing bubble is re-inflating, and banks are raising rates on credit cards, small business loans and mortgages. I discussed this in detail on July 31 in Fed Policy Hurts Main Street, Creates Bubble Stocks. I say raise the funds rate to 3% and stop the QE madness!
August Begins With New Highs and New Risky Levels
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