Sunday, May 22, 2016

The Hardest Landing: Momentum Is To The Downside

Throughout this era the noose has gotten tighter and tighter, but the attention deficit Idiocracy mistook 0% as a sign that risk is low, when it's the most blatant sign of collapse. Faith in Central Banks is 100%...

Survivor Bias
The gamblers who have survived thus far have taken the most market risk (Beta). Whereas the most active managers have been systematically obliterated. Now today's perma-bulls are lazy about collapse - They don't look for something they don't want to see coming...

The last crowded, massively over-owned risk assets are ready to fall HARD...

aka. "Yield"

Steeper and steeper...
Global Dow

Consumer staples with Relative Strength (Momentum)

Berkshire Hathaway (Cyclicals)

High Dividend Yield

Largest buyback programs (stocks that have reduced share count by 5% or more in the past year)

U.S. Defense (Military) stocks

Municipal bonds

Small cap stocks

The Nasdaq

Financial asset managers