The fake narrative that the tax cut would spawn a multi-year economic expansion lasted just long enough to get the usual bagholders ALL IN the casino. Now that the doors are barred, the narrative is turning into a late cycle pumpkin - late 1920s, that is. Sadly, the liars who claimed that we could borrow our way out of 2008, can't stop lying. And the sheeple can't stop believing them - addicted to fairy tales and the psychopaths telling them.
The S&P 500 is now down on the year, despite $1 trillion in stock buybacks:
For its part, the Federal Reserve is also trapped by the "greatest 'Conomy ever", because to stop raising rates at 2% would be an admission that this was the greatest con job ever. It would also mean that their economic models have the veracity of a Magic 8 Ball. So the alternative is to continue imploding the greatest con job ever.
And speaking of U-Turn narratives, hedge fund manager Ray Dalio said back in late January that those holding cash in 2018 would feel "pretty stupid". Now he's saying this is the new 1930s for investors. Which means that jumping off of tall buildings will be the order of the day, for those NOT holding "cash" (money markets/t-bills).
Another example is Goldman Sachs who were saying just a few weeks ago that stock buybacks will rescue this market. Now they're telling their largest (wealthiest) clients to get the hell out. But fortunately the world won't fall apart until January 1st, 2019, post bonus payout.
They also seem to agree with Ray Dalio that more Smoot-Hawley tariffs will not be accretive to shareholder wealth:
Speaking of more tariffs, anyone who believes that this trade dispute is going to resolve quickly or easily is in fantasy mode, as we learned this past weekend:
"He said the U.S. wasn’t in a rush to end the trade war and would “not change course until China changes its ways”"
“The great hope of convergence between China and the U.S. is becoming less and less of a likely reality.”
The Asia-Pacific Economic Cooperation summit ended in disarray on Sunday after leaders failed to agree on a joint statement"
Which brings up Black Friday
Retailers are getting annihilated this week on earnings misses from Walmart last week and Target this week:
Kohl's exceeded expectations. Can't you tell?
Mind the gap 'n crap
