Surveying the Aftermath

Oil and gas stocks are down 80% from their highs. Over the past 3 month, the median return of the oil and gas equipment space is -40%, spearheaded by cremation trading in PBR, LNG, CLR and WLL. Name the oil stock and it’s down 30% over the past 90 days. If you’ve been concentrated in this sector, your game is over.

Similar carnage can be found in aluminum (-37%), solar (-35%), Mineral and Metals (-32%), Semis- Memory chips (-32%), Chinese Burritos (-30%), Steel and Iron (-30%), Nuclear (-30%), Shipping (-30%), Silver (-28%), Rubber and Plastics (-27%), Copper (-26%), Chemicals-Major (-25%), Alternative Energy (-25%), Computer peripherals (-25%), Internet Service Providers (-24%). I can go on for days. Out of 200+ industries, only a handful were up: Home Healthcare, Airlines, Utilities and some REITs.

It’s really real out there. Broader indices mask the pain that is pervasive in the tape. Short sellers have been rewarded with epic gains. They are firmly in control of the dialogue and steering this grand equity party into the dirt, thanks in large part to an incompetent government, whose high tax/regulatory environment have stressed the economy into a standstill.

Aside from that, the Federal Reserve put, that has been in place since 2009, is gone. Fed Chief Yellen is weak and doesn’t have control of her board governors, who make speech after speech, discussing the virtues of a potential rate hike.

Really?

How about we see a little inflation first, before tightening the money supply?

The bottom line is this: the dollar is +15% over the past two years, +5% year to date. Our corporations are being gimp’d, placed upon the altar of sacrifice because we are being led by quisling incompetents.