The only things that have kept this gong show going this long are epic boatloads of bullshit, an unprecedented end-of-cycle misallocation of capital, and a trillion dollar Treasury theft organized criminals call "GDP".
Speaking of clowntopia, we begin with a haiku from the clown prince on why he alone is qualified to lead this circus. I have to admit that somehow he made a bunch of fucking morons appear smarter than they are, if only by comparison:
When economic growth slows down mid-cycle, high growth Tech stocks are a safe haven. Unfortunately, when economic growth stops at the end of the cycle, growth stocks crash...
Any questions?
Due to record tax cut optimism, on the anniversary of the Lehman collapse, gamblers have not the slightest fucking clue where they are in the economic cycle. Hence the Emerging Market meltdown, imploding Tech bubble, Global trade war, Global economic slowdown, Fed double tightening, and pending civil war election, are all widely ignored risks.
This year to date can be summarized thusly. The S&P 500 is up exactly as much as the rest of the world is down:
The Shanghai Composite and Hong Kong Hang Seng are both now in bear markets.
U.S.-listed China Tech stocks confirm that this is not "mid-cycle":
U.S. gambler delusion can be visualized thusly:
And thusly
IAC Interactive is an internet conglomerate with holdings such as Match.com, Tinder, and Angie's List. Here we see it has entered late stage blow-off mode.
Speculators crowding into the last few junk stocks still making new highs:
Semiconductors are confirming that the cycle is over:
The Tech wreck is spreading as the Nasdaq 100 just back-tested the broken uptrend channel, amid collapsing breadth:
Dumbphone 11 has arrived
"U.S. producer prices unexpectedly fell in August, the first drop in 18 months, on declines in costs for services and foods, a Labor Department report showed Wednesday in Washington."
Imagine tariffs causing prices to fall. There's only one reason that can happen. Because the Nasdaq leading indicator is rolling over. Again.
Except this time it's not the middle of the cycle...
