Thursday, July 12, 2018

Buried Down The Trumptopian Rabbit Hole

See the circus, or be the circus, those are the only choices right now. Those in the mainstream media constantly trying to make sense of insanity, are a big part of the problem. There is no distance down the rabbit hole they won't follow. This was a particularly bad week to stop smoking crack...

Most scams are targeted at old people. Like this one. The definition of insanity is trying the same failed ideas over and over again, each time expecting a different result. To be clear about the rules for Japanification - the serial conning of an Alzheimer's-ridden Old Age home: Policy-makers don't care how painfully this ends. There's a good reason why the Japanese widely believe that Bitcoin is safer than the stock market. Because it's not controlled by serial psychopaths.  

No one will be laughing when this buffoon-fest ends.

Fittingly, there is no part of this farce that isn't 100% fraud and contrivance. This era proves once and for all that hairless monkeys will believe anyone and anything, if it means escaping the inconvenient truth...

Trump claims that NATO nations unanimously agreed to increase spending, but of course they didn't. He says they love him in the UK, of course they don't.The exact same people who imposed George W. Bush on the rest of the world, have now imposed an even bigger fucking clown. I suggest that the consequences of this serial buffoonery will be significant for those who place their undying faith in proven con artists. Kind of like last time, but much "better".  

While the circus is wrapping up its final act, the rest of the world is standing around waiting for this farce to end.

Within the casino, ironically, three of the all-important FANG stocks are making new highs today, and yet this year's top performing large cap Tech stock is not:

In a divergence not seen all year, small caps stocks - safe haven from global trade wars - are beginning to lag:

New high this week in the junkiest of junk stocks, we know how bullish that is, especially when the Yuan is being devalued simultaneously...

The logic of the day is that risks are so high, we should just ignore them. This is what happens when people have never been through a down cycle. They trot out dumbfuck logic from their daytrading class. Such as assuming that enough bad news equates to good news, and that gamblers will remain steadfastly bullish even if markets are crashing. 

Just remember that if a meteor is heading towards Earth and enough people see it, then it's a buying opportunity. 

Meanwhile, the bear case is "so obvious" that Active Managers are almost 90% exposed to risk which is the same level they were at in 2007, and just a tad higher than at the bottom in 2009.

Notice that risk exposure is highly correlated to the market, so somehow the casino went down in 2008 even though gamblers became increasingly bearish: