Risks that have increased in the past four weeks:
Global deflation/negative interest rates, oil glut, global output gap, layoffs to fund buybacks, slowing trade, global bank implosion, collapsing trading activity, profit decline, global risk aversion, Central Bank liquidity trap, recession trade, credit spreads, carry trade unwind, momentum reversal, sovereign wealth liquidation, volatility, asset correlation, complacency/short covering, Groupthink/mental midgets peddling fiction...
"The U.S. is uncorrelated to Globalization"
"We are we think in the middle of a bull market expansion for stocks. Bull markets don't die of old age, they die of speculative excess and I'd argue that we are far away from that level at the moment,"
[All we need is another batch of dumb money, because the last idiots were bilked on fracking stocks, Chinese internet stocks, revenueless biotech, junk IPOs, and 800 P/E Cloud stocks amid no sign of speculative excess]
This just in: Biggest profit decline since 2008...
MW Feb. 24th, 2016
MW Feb. 24th, 2016
The root cause global problem of course is the global output gap, which is brokered with debt, because the global market doesn't clear. Supply doesn't equal demand. Those who spend are being continually "right-sized" and marginalized, while those who gain jobs don't have any spending power. Worse yet, oil is the primary source of income for developing nations which are the marginal source of global growth. So cheap oil is a net negative to global economic growth, a fact that every single EconoDunce doesn't understand...
