Friday, May 12, 2017

0% Return on Capital: Poverty's Revenge

The Idiocracy's curse for allowing global poverty to run rampant while corporate profits soared to ever-higher heights is an ever-lower invested return on capital. The glut of capital thrown off by unprecedented profits has nowhere to hide, hence the zero sum stock market circle jerk featuring stoned gamblers bidding up their own stocks while pretending to be wealthy. Deja vu of Y2K and the Housing Bubble, for Generation Alzheimers...

Any questions?

"Good news, we successfully obliterated the U.S. economy and replaced it with a low margin web site..."

This week, retail ex-Amazon got obliterated, as did banks. Oil bounced while Apple and Amazon held the casino near all time highs. Shockingly, the Fed's plan for reflating the economy by raising borrowing costs, is not working out. But don't tell them, since they've decided they're right and markets are wrong

Lowest weekly casino volume in over a decade (ex-holidays):

"I can't think of anything to worry about. Can you?"

Large banks

Small banks

Canadian bank

 U.S. oil ETF stopped right at prior support:

What happens when only two stocks are holding the entire casino up:

Retail (Outlet REIT):


Full retard chart of the year

South Korean stocks