Tuesday, July 26, 2016

Monetizing Collapse Is The Dominant Investment Paradigm

We're just waiting for the Elliot Straight Down Wave to begin...

CNBC: July 21, 2016
Death By Amazon: The 50 Companies Amazon is Crushing

Imbalance of trade has accelerated the demise of the real economy with nothing to take its place:

Global Capital is locked in a zero sum game, characterized by:

Slowing Global growth and global trade
Rising protectionism
Ever increasing output gap
Competitive debasement
Economic cannibalization aka. "Outsourcing"
Stock buybacks to artificially inflate per share profit
Multiple expansion
Accelerating sector rotation
Minimal volume
Increasing Monetary stimulus/Diminishing Marginal return

One political party is running on the slogan, "Make America Great Again". The other is running on the slogan "America Is Already Great again". Of course, neither one will be right in the end. It's this egomaniacal obsession with "Exceptionalism", that prevents it from happening.  

Social Mood has turned down hard amid the obligatory daily mass shooting/stabbing event. One by one, the jobless consumer is starting to realize that recovery has been a 7 year charade, papered over by an empty shirt speaking from a teleprompter, with Paul Krugman's hand up his ass...

From the Amazon Kill List:

Left-for-dead retail is the last sector imploding Active (Money) Management, unable to keep up with relentless sector rotation...

All of which covers up the fact that now yield is imploding:

Breadth momentum (McClellan Oscillator):



Oil with Exxon:

They're all in there now, so we're just waiting for the Elliott Straight Down Wave to end this circle jerk. For good...