Fiddling While Rome Burns

I just realized why gamblers are gravitating to the junkiest stocks at the end of the cycle, it's because they are buying companies that are expected to have no revenue and earnings. Whereas companies that ARE expected to have earnings and revenue are imploding left and right. It's an Idiocratic double standard that can only end in extreme implosion. For their part, in their boundless hubris, the Fed is tightening into recession. But don't take my word for it:

Yellen yesterday: "additional rate hikes will be needed to sustain the economic expansion"

Any questions?

Sadly for that asinine hubris, and for bond "guru" Jeff Gundlach's higher yield trade, the exact opposite is happening. Again. And Again. And again. For eight years straight, for the first time in U.S. history, bond yields have trended lower throughout the "recovery". In other words, the $4+ trillion in money printing only drove a chasmic gap between stock market fantasy and economic reality:

So what advice to give Wall Street traders when policy-makers ignore all economic data?

ZH: Ignore The Data, Listen To Idiots Instead

"The relevance of data is declining. Policy-makers around the world have made clear they will ignore any data that does not fit their narrative"

"It's about listening to speeches rather than trading the data prints"

Got that? Policy dunces are ignoring reality, so everyone else should ignore reality too. Because what could go wrong with ignoring collapse in broad daylight?

For one thing, deja vu of 2008, gamblers will cover all shorts into the last fake reflation rally. 

Check.

They will assiduously ignore those markets that are not accretive to their own bonus-centric imagined reality.

Check.

Check.

Check.

Check.

And they will ignore the end-of-cycle stock to bond rotation taking place in broad daylight.

Check.

Check.

And check.

It all comes down to Chinese tech stocks

Yes, again

Apple (candlesticks) and semiconductors are having a bad go of it...

Apple has breached its 50 day due to unexpectedly low iPhoney 28++ sales...

BitCasino is in deep trouble