Sunday, April 17, 2016

Momentum Con Job aka. The Greater Tool Theory

Those buying assets with ever-declining values are telling themselves (and CNBS) that a greater tool can always be found to take them off their hands at higher prices...Only to find out that the greater tool HAS been found...

S&P earnings yield (E/P):

Volume moving averages aka. institutions selling...

There's only one way to describe this globalized clusterfuck: Con job. Central Banks generated risk asset momentum and conned sheeple into following that momentum, creating a momentum feedback loop. The more people bought into it, the more they rationalized the irrational. Gamblers invented the fake narratives to go along with the con job. 

The 0% Faustian Bargain
Anyone seeking "yield" has been systematically obliterated. This cycle is doing to capital what 2008 did to labour - total annihilation. Liquidity flows are a zero sum game - flowing out of one asset/sector, on to the next, one by one pumped and dumped. 

Now liquidity is draining out of every asset class interrupted only by short-covering ahead of Central Bank meetings and bogus oil conferences.

The greater tool dominoes...