Daily we are pounded with contradicting messages, dulling the mind and senses. Nihilism and subjectivity are the orders of the day.
Attenuation
The (very) temporary lessening in volatility. I talked about it here. Since then, the risk markets have ground higher, giving us this latent cluster fuck:
As you see, I moved the green "2" to the right. Elliot Wave purists may disagree with this labelling, but the conclusion is the same - a low volume rally, wedging higher, with no underlying support. Look at volume in the bottom pane - no conviction. These are hedge funds that missed their year last year, and have to make up for it this year. The general consensus is go "all in" now, because if you don't, you may lose your investors, whereas if if the market tanks, you have 11 months to make up the losses. Like I said, a hedge fund is a giant call option - heads they win, tails you lose.
The low volume backs up the fact that the average (real) investor no longer trust the market, hence mutual fund outflows for multiple months in a row now.
Meanwhile, we have geopolitical risk at its highest level in history - across the globe, a tinderbox. We have politicians who lie non-stop and a general public that desperately wants to be lied to, about the future, the economy, the environment - basically anything requiring effort to fix. You see, the Baby Boomers are in their final approach to retirement, and they don't want anything, including reality, to delay their golden years. Meanwhile, the latest economic theories have been duly reconfigured to advise us that printing money really is the best way to fix the economy. I guess the Founding Fathers forgot to mention - "Fellow Americans, when in doubt, print more currency...the Constitution is hereby complete". Sounds really stupid, until you realize that it's what the Fucktards of the day have been doing and are now looking to increase.
Riskiest time in human history, bar none.
Yet for all that, Barry Ritholtz, tells all of us ("apocalyptic") bearish forecasters to stop blogging - we are too repetitive and more importantly it's a new bonus cycle i.e. time for Barry and his hedge fund brethren to Tebow another fat pay check. Therefore, all of us realists doomers, need to settle down and get with the program. Barry's claim to fame is riding around the Hampton's checking out all of the stores firsthand to see how the American economy is faring. It's hard to see how this guy could be out of touch with reality.
Ok Barry, I will make this deal - I will stop blogging until my market prediction bears out and the Ponzi collapses like a cheap tent. After which, I fully expect you and all of the other bloated 1% Comfort Seekers to run and hide away and shut the fuck up for good. Whether you want to, or not...
