Friday, July 7, 2017

The Party Is Over aka. Global Synchronized Implosion

The jobs report easily exceeded Third World expectations...

Today's payrolls report indicated that more McJobs were created than expected, at lower wages than expected. Shocking. Transformation to Third World nation is nearing completion. But don't take my word for it...

"I would feel a little bit better if some of the contradicting numbers of low unemployment rates and low wage growth were more in line with each other"

We've heard this for 40 years straight:
We need to be rethinking how we develop skills in order to keep the U.S. competitive. We have to integrate education more with work"

"Wall Street worries that the combination of low inflation and tighter monetary policy could lead to recession"

Why would you think that?

All we're waiting for is the global asset crash which will confirm my proprietary hypothesis that debt is neither wealth nor GDP. And my other hypothesis that debt levels don't fall nearly as quickly as asset prices. Speaking of which, now we are going to find out who has been swimming naked: 

"bond strategists now see the possibility of a shift to a more fundamental-driven market, which could result in higher, more normal interest rate levels that will affect everything from home mortgages to commercial loans"

"We've seen this movie before, a couple of times"

Only about four times, including 2008, but who's counting?

The old age home enjoys watching the same movie over and over again...

With each iteration, risk assets get monkey hammered until such time as Central Banksters agree that enough is enough. Here is the list of global assets peaking, peaked, or imploding. Current market "leadership" comes from the last group - those asset classes that are rolling over from lower highs...

First well-imploded:
Retail sector
Auto sector
Energy sector
Mining/materials sector

Big Cap Tech
Healthcare sector
Internet stocks
Yield/dividend stocks

Rolling Over from lower highs aka. "Leadership"
Global stocks ex-U.S.
Emerging markets
Small caps aka. regional banks

So why am I saying all this if we're just going through another iteration of the same movie? Because my hypothesis is that this time, is the last time...

2015 RISK

The Banks' return of capital is about to begin...

2008 RISK: