The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Tuesday, July 12, 2016
August Do Over @10x Risk. RISK IS BINARY
Good times... Last summer everything was going great until China started devaluing their currency. One year later and what's changed? U.S. stocks are at a new all time high, while EVERYTHING else is lower...
Global stocks are lower
Oil and commodities are lower
Global financials are lower
Global GDP growth is lower
Deflation is lower
Global yields are lower
Corporate profits are lower
Dollar / Yen is lower Junk Bonds are lower
Transports, Tech, Biotech, Retail, and Financials are lower
And perhaps most importantly, the currency that caused all of last year's turmoil, the Chinese Yuan is lower:
One year ago (July) is circled:
Deja Vu, sort of...
U.S. Financials peaked exactly one year ago...
Global Financials Red arrow is last July
Leadership is rolling over...
Realized volatility is already at late August levels... Doh!