Thursday, August 4, 2016


"Printing money was their secret to effortless wealth"

The (U.S.) stock market now only goes up when the global economy is tanking...

Last week we learned that combined Central Bank "asset purchases" are running at all time highs. And yet in June, pre-Brexit, the World Bank warned that global GDP growth is running at the lowest level since 2009, 2.4%.

In other words there has been a negative correlation between Quantitative Easing/U.S. stocks and Global GDP since 2011. In a normal economic cycle, Monetary stimulus peaks early in the recovery and then tightens during the balance of the recovery. In this bogus wreckovery, monetary stimulus has increased for seven years straight while GDP growth has gone in the other direction...

Global GDP (red) with combined Central Bank assets (black):

Global Yields confirm that printing money is not improving the economy. Who knew...

Oil, Junk Bonds, and Global Financials agree with GDP

The late cycle rotation to U.S. Recession stocks confirms GDP:

The global carry trade confirms GDP:

The World ex-U.S. agrees with GDP: