Sunday, March 12, 2017

Trump: History's Greatest Con Man. No Blind Man Saw That Coming...

'Animal Spirits': aka. Greed
"People's economic moods are largely based on the stories that people tell themselves and tell each other that are related to the economy...people will and do buy snake oil...And when that is discovered, as it invariably must be, the confidence disappears and the economy goes sour."

All of this of course is merely Social Mood Theory - nothing new to Elliott Wave followers. Apparently the lamestream media just discovered the concept on Friday. Risk markets are governed by fear and greed. In between those extremes, HFT and Central banks do what they can to wag the dog, while CNBS blows smoke up everyone's ass constantly, for fun and profit...

Jamie Dimon (CEO of JP Morgan):
"One of the CEOs came out of one of those meetings with Trump and said, 'We've never had such a pro-business president since the founding fathers.'

"Now, I'm not sure that's true, but consumer confidence, small business confidence, all skyrocketed"

Perfect segue...

Conventional wisdom suggested that "one of the Trump initiatives would be in international trade, therefore the multinationals might be under some stress, and the small caps should be fine,...So that deterioration has bothered us somewhat...the Trump agenda will be far later in being implemented than people thought"

Something disturbing ALWAYS happens to small caps after eight years...The animal spirits run far far away, with all of the money...

Russell small cap / Dow ratio:

Because the last muppets get monetized for fun and profit...

Barron's March 10th:

Consumer Sentiment versus Sears:

The left for dead, Sears, is having its biggest two week % gain since August, 2015:

"And all of the HFT and all of the printed money couldn't put animal spirits together again"

Schwab with IPO mutual fund: