Friday’s sell off in U.S Equities certainly took a number of people by surprise now didn’t it?
This in itself “not surprising” as the current state of “passivity” and “complacency” among investors is at or “above” all time highs. People have got this crazy idea in their heads that everything is moving along as planned, the “recovery” is well underway and that essentially ( no matter how many times they change their tune ) the Fed is there to screw you oops – “save you” if things start to get ugly.
I borrowed this chart from the good fellows at Zero Hedge to illustrate an important point.
Realistically – how much further do you think the market can stretch ( considering we are already in one of the longest, overstretched, Fed induced, pump job markets in the history of mankind ) before doing what “markets always do” as illustrated in the chart below?
Markets_Top_Forex_Kong
What could possibly have you think that for “whatever reason” – this time it’s going to be different, with historical data going back to “the beginning of time” showing the “boom and bust cycle” repeat, again , and again , and again?
Tell me! Don’t just read this crummy little blurp and go back to the T.V! You tell me what it is that “you know” that has it that “this time”…yes “THIS TIME” – IT’S GOING TO BE DIFFERENT.
- It can’t be the Fed…..cuz ( haven’t you been listening? ) the Fed says it’s going to continue with it’s tapering and within the next year END IT’S QE PROGRAM all together….so don’t give me that.
- It certainly won’t be U.S Corporate earnings as expectations for earnings have come down considerably for the first quarter, and what? You imagine the spring and summer quarters will be any better?
- It can’t be “global growth” as every estimate from the IMF down to the average joe blow walking down the street knows – global growth “ain’t goin nowhere” anytime soon so…….
So what is it Sherlock? What is it that “you know” that the rest of us don’t, that would have you “buy and hold” now?
5 plus years of full blown money printing and equity pump job to have it that 326,000 MORE Americans stood in the unemployment insurance line last week, and 1 in 5 households in American are currently on food stamps.
I can’t wait to hear back. I seriously “can’t wait” to hear back.