Wednesday, January 18, 2017

Finish The Job This Time

There have been three overnight limit down crashes in the past 18 months, all bought with both hands. One more and the remaining dominoes fall...

2008 monkey hammered Globalization pretty good, but Bernankenstein, student of the Great Depression and master of Dungeons & Dragons, engineered a miraculous fake recovery. Now handed off to Janet Yellen, whose qualifications include not seeing Lehman coming until after it happened. Because the failures of New Century, Bear Stearns, WaMu, Countrywide, Fannie, Freddy, and AIG were not sufficient warning. It's been eight years since the middle class bailed out the Wall Street gamblers who bet against them via The Big Short. Subsequently, corporate Mad Men paid back the favour by laying off what remained of the middle class, while increasing national debt by a mere 120%.

Fast forward eight years and now Goldman Sachs is running the U.S. Treasury and the Fed is telling everyone don't worry, because stimulus is still running at extreme recession levels, eight years from the last recession. In other words, it's a scene that would make the movie Idiocracy appear sane. Fortunately, this time around, both Wall Street and Main Street drank the Kool-Aid and are now record leveraged to this fantasy. Therefore, in my humble estimation, this will be the death blow for Globalization, plus a few miles deeper from an archaeological standpoint...

Financial Advisors

Global Financials

Retail: Amazon

High Beta junk stocks

Nasdaq/Dow Ratio

New Highs S&P 100: I stand corrected, 3 stocks at new highs today...

Global Bonds

Russell / S&P ratio

Utilities and Banks