Thursday, February 25, 2016

Generation Madoff: Because "More" Was Never Enough

There wasn't just one Madoff, there is a generation of them. Social Mood aka. risk appetite has been once again systematically obliterated...

What they don't seem to understand is that there are only so many morons with money to throw away at the casino in each cycle. And this cycle is over, so prices have to go lower until they find "value", which is difficult when profits are falling faster than stocks...

Rydex asset allocation: Bullish/bearish ratio

At the peak, the ratio was 29:1, now it's 5:1...

Global stock losses: 
$12 trillion through August, and another
$8 trillion through January

Energy losses
250,000 jobs
Over $1.3 trillion

Mining losses
$1.4 trillion

Junk bond losses
$180 billion

IPO losses: One decade gone

Biotech losses: Two years of vertical gains

Leveraged Loan losses: Four years of gains

Carry trade losses: ?

Earnings yield (E/P): Profits are falling faster than stocks...

Growth/value ratio aka. appetite for self-destruction...