It's insanely irresponsible to use this much combined fiscal and monetary stimulus outside of a recession. But Trump wanted to get his base fully lubed up ahead of the election.
Mission accomplished...
The banquet of consequences has been set. The only question now is what wafer thin Twitter mint will trigger the Lehman Moment.
aka. "Sell"
Historically, this amount of combined fiscal and monetary stimulus has been reserved for recessions, when gamblers are RISK OFF. By implementing this level of lubrication outside of a recession, Trump has inflated human history's largest mega bubble:
"No one saw it coming"
Well-conditioned fools
New highs (lower pane) have been contracting since this last leg of the rally started:
Mission accomplished...
The banquet of consequences has been set. The only question now is what wafer thin Twitter mint will trigger the Lehman Moment.
aka. "Sell"
Historically, this amount of combined fiscal and monetary stimulus has been reserved for recessions, when gamblers are RISK OFF. By implementing this level of lubrication outside of a recession, Trump has inflated human history's largest mega bubble:
"No one saw it coming"
Well-conditioned fools
New highs (lower pane) have been contracting since this last leg of the rally started:
"Greatest con job ever"
"The pedal’s to the metal, but the car’s losing speed"
Historically, when unemployment has been this low, the average deficit/GDP ratio has been about zero."
The current Deficit/GDP growth ratio is 200% borrowed money:
Bonds are confirming that stocks should be RISK OFF
Ironically, due to the global collapse in interest rates, the market is now paying an infinite premium for "growth". Any type of top line growth no matter how it's obtained - profitable or not. Credit risk is of no concern. Cycle risk not a consideration.
Which is why the lowest quality stocks e.g. profitless IPOs are leading the market.
Trump is on a manic Twitter high right now fully believing that the path to 2020 is wide open. For their part, gamblers can't see any risk, since they are high on double stimulus.
They are a bit over-caffeinated
By buying into Trump's election rigging gambit, they have inflated their own bubble of delusion. While insiders took the opportunity to cash out while GDP implodes at max stimulus.
All risks are ignored:
Friday in Asia:
Friday in the U.S.:
The last time the wheels came off the global bus was after the December FOMC (rate hike). It would be highly ironic if this rate cut had the same effect.
So far, so bad:
"There's an ETF for that. It consists of the most overvalued large cap stocks in the entire market. Be sure to set a stop loss to trigger the flash crash"
So far, so bad:
"There's an ETF for that. It consists of the most overvalued large cap stocks in the entire market. Be sure to set a stop loss to trigger the flash crash"
The ECB meeting yesterday elicited a knee-jerk sell-the-news reaction, as it was already priced in.
Not long to wait until we see what happens with the Fed:
