Saturday, May 21, 2016

Seeking Yield In The Age of Entitlement

We already know how this is already ending, it's been scripted: Serial conned sheeple "frightened" by volatility seek shelter in the most overvalued asset classes, at the behest of their serial psychopath investment advisors, and then it all implodes with extreme dislocation. Believe it or not I still have friends - ok, acquaintances. One told me last night he's not greedy, he only expects a 5% annual return on investment. Another guy told me he only buys the S&P 500, nothing risky. The wife gave me a look, so I ordered another drink...We live in the age of entitlement, where everyone else can get fucked over at 0%, but "not me".

MW May 18, 2016
The Wildly Popular Minimum Volatility Fund Says Keep Calm Carry On

Minimum volatility, maximum implosion, because when this thing rolls over shit ALWAYS breaks. Oh look, it rolled over this week and took back six weeks of gains. I wonder if that means anything to stoned sheeple. Probably not...

This week was the fourth down week in a row for the Dow. Through mid-April, the Dow was outperforming the S&P and Nasdaq, but subsequently it has underperformed. Why? Because the "safest" stocks are now the most overowned...

A doji (indecision) on the weekly. The last doji two weeks ago ended lower:

The Dividend Yield Fund has only flash crashed twice so far, which makes it a "strong buy". Number one holding, Lockheed Martin. What else?

Morningstar May 21, 2016

Taxable- and municipal-bond funds were the highest-receiving Morningstar category groups, with estimated net inflows of $22.8 billion and $5.9 billion, respectively

Actively managed equity funds once again bore the brunt of outflows; all flows into passive equity funds were positive [Seeking the safety of the S&P 500]

Municipal bonds:

Junk bonds
"Taxable bonds received balanced inflows on both the active and passive side"

Cash balances (Money markets)
"I'm only seeking 5% return on investment. Infinity more than 0%"

"Keep calm, carry on"

"Buy the stocks we recommend, not the ones we manage"