Bearish sentiment is at the lowest level in 27 years i.e. just prior to the 1987 crash
"MISSION ACCOMPLISHED"
PEAK BUFFOONS: The Silence of the Bears
The age of the buffoon is reaching its apex. A buffoon is someone who talks constantly and knows everything. The buffoon speaks with certainty about uncertain things and uncertainty about certain things. They talk constantly, but they never listen and never learn. They never admit that there are two sides to every story and they keep half of the facts off the table at all times. The thinking skeptics were silenced a long time ago - bulldozed into submission. As we see below, it only took twenty years to get everyone on board with the illusion-formerly-known-as-the-economy. A 250% increase in total debt. Roubini capitulated. David Rosenberg capitulated. The skepticism they expressed during 2009-2011 is even more valid now than it was back then:
Nouriel Roubini: Aug. 12th/2011
"you cannot keep shifting income from labour to capital without not having an excess capacity and a lack of aggregate demand. And that's what's happening...every firm wants to survive and thrive and thus slashing labour costs even more. My labour costs are somebody else's income and consumption. "
Then Big Nurse found him and gave him a frontal lobotomy:
"The contrarian, who stayed bearish for most of the recovery, is optimistic about U.S. markets, predicting that “the Federal Reserve’s exit from quantitative easing will be slow, keeping interest rates low.”
Anyone who is well known and in the public eye has been forced to capitulate under extreme duress. Which gets to the key point, the age of the buffoon was an inevitable result of an aging Idiocracy that can no longer handle the truth. The buffoons provide a valuable service to the stoned masses who need easy one-sided answers to every issue or problem. Brain pablum for morons.
"No one believes the Market Will Fall" [MW: Sept. 9, 2014]
"Bulls win, bears fold, as the Fed holds"
"bearish sentiment at its lowest since 1987 (13.3%). In fact, short-sellers have nearly disappeared along with the few remaining bears. "
"The market has shrugged off multiple geopolitical problems, low market volume, trillions of dollars of debt, sky-high sentiment, extreme P/E ratios for many high-flying stocks, and dozens of other red flags. Yawn. The only gorilla in the room that matters is the Fed."
"Unfortunately for soul-searching bears, the Fed trumps all. As long as new money flows into stocks, interest rates are low, and the market keeps going up, why worry?"
A HALO Crash is the Most Likely Outcome
Everyone is now on the same side of the boat at a 27 year extreme:
Investors Intelligence % Bearish (inverted):
Welcome to the Hotel Californication
Where risk is "binary": On/Off
Mispriced risk visualized: Priced for perfection:
S&P 500 with Vix and Fed Balance Sheet
"The Fed Trumps All"
QE4 ends in a few weeks with ~$20b more to be deployed relative to the $3.4 trillion already printed i.e. ~.5% remaining
Remember: Machine Guns Always Peak Last:
http://www.machinegunpriceguide.com/html/beltfed.html
Year/Quarter Each market peaked:
Where risk is "binary": On/Off
Mispriced risk visualized: Priced for perfection:
S&P 500 with Vix and Fed Balance Sheet
"The Fed Trumps All"
QE4 ends in a few weeks with ~$20b more to be deployed relative to the $3.4 trillion already printed i.e. ~.5% remaining
Remember: Machine Guns Always Peak Last:
http://www.machinegunpriceguide.com/html/beltfed.html
Year/Quarter Each market peaked:
