I get why Millenials don't see this coming, but anyone who was around for the last two con jobs has absolutely no fucking excuse. Other than the fact that we're surrounded by hardcore criminals and sociopaths...
The operating thesis by Zerohedge, Bernie Ritholtz and others is that betting on Trump post-election was the smart bet - Currently up 40% since the election. First off, they need to understand the lesson that wasn't learned during Y2K, which is that much of that final momentum was from their own money going ALL IN:
The other lesson these amnesiacs need to relearn is the difference between realized and unrealized gains. Because when everyone is crowded into fewer and fewer momentum Tech stocks, the ride down is much faster than the ride up. Especially when systems are offline...
You wouldn't know it by the S&P futures which find a new excuse to dance back to all time highs on a daily basis, but every other global asset class has left the party...
This is how many Hindenburg Omens there have been on the Nasdaq
It's not hard to see why (All charts are Tuesday close):
This chart sums it up:
This rally is all iPhoney Max Excess now
Because which stock is the most heavily (over) weighted in all major indices...
Post last week's FOMC meeting, Emerging Markets have lost their bid again:
Move along, nothing to see here...
Worst breadth since BEFORE the election:
Dow Theory confirmation. Just left the building
Any questions?
"These should be flush times for the big asset-management firms...And yet, in one of Wall Street's starkest divergences, the shares of asset managers have been trampled during this year's bull run"
