Anyone know what to make of all this craziness?
Einhorn says TSLA is a dot com like bubble. Bitcoin is racing higher on a daily basis — up by another 2.5% this morning. Iron ore was limit down in China last night. Copper lost 4% yesterday. In fact, all of the base metals are being cruise missile’d this morning, as Trump eats chocolate cake. Crude oil is off by 2% amidst global growth concerns and rancor. Yet, despite all that, futures are higher and stocks are poised to hit new record highs.
If you’ve been a gold bug for the past 5 years, your life expectancy has been shortened. Volatility and market uncertainty isn’t something that concerns investors anymore. The investment community have been spoiled with a market that, seemingly, goes higher in spite of negative news. When was the last time you gave a shit about what a hedge fund manager said, other than to bet against him?
I am 100% long and believe stocks can continue heading higher. But I’m not delusional and do not think this is normal. The market hasn’t been normal since 2013. I can remember when it changed for me. It’s etched into my psyche and in my personal notes, a period that shall forever will foreshadowed by my unfortunate excursion into the 4 horsemen of certain death — delivered live, here on the blog, for all the world to see. The non-systematic risk associated with buying individual stocks seems unnecessary now, given the fact that broader based ETFs can provide investors with steady returns — without having to worry about annoying earnings or unforeseen deleterious events.
Why not just buy QQQ, XIV, XLF, XLE, SLX and a little GLD and play golf all day?
Cheers to the stock pickers and the people out there who still give a damn about creativity, being different, and the data.
Top trade ideas: defense stocks (OA, RTN) and perhaps buying this dip in iron ore/steel and/or copper. It might get ugly, but that’s when you want to buy.
If you enjoy the content at iBankCoin, please follow us on Twitter
I love Treasure of the Sierra Madre, one of my all time favorites.
With a healthy allocation to oil and gold in client accounts, I feel like that guy from the movie 300. You know, the guy that got kicked into a pit.
Me: “This is madness!”
Markets: “This is SPARTAHH!!”
Great analogy and I’m that guy too.
I don’t get the fascination with commodities and oil. You’ve said they look good several times now but they keep getting poleaxed lower.
It is always darkest before the dawn.
@Maven r u serious? We are going to get SO dark before any light shows through this massive global glut we have. Since 2009 Central Bankers and MOSTLY CHINESE govt has funded this massive Equity/Commodity bubble we are in right now. CHina has already said GDP coming down and China Housing Restrictions are on tight. Unless ECB, FOMC, BoJ, BoE come in and kill us bears again…we are finally going to get to see how ugly of a mess this is. Ark is ready.
Bitcoin, by far, has been my best investment since 2013. I’m approaching a 4x return, and there could be more coming with the Asian populace looking to allocate more to crypto currencies. It’s basically digital gold without the back ache from hauling ingots around.
Something about the “physical” in physical gold that appeals to me more than the ethereal Bitcoin tho I did have a nice trade a couple months back.
This market hasn’t been normal since March 9, 2009 and the GE Death Spiral. After that..it’s been a non-stop train up.
Except they left GE at the station.
Actually a Black Thursday in Chinese Commodities..what a ugly massive bubble this has become.
Until the fed indicates they are finished raising rates gold and oil will continue to underperform.
Market typically rises during rates hikes until the Fed oversteps – which they will do.
Fed did not raise rates for years while crude oil lost 75% of it’s value.
I’m not sure what point you’re trying to make, but yes that is correct. Those were structurally related changes in the oil market which were independent of Fed policy. There was a huge supply increase from domestic sources and then the lifting of Iranian sanctions added more supply. Is this the case with gold, or other commodities like copper?
Perhaps the market is getting tired of playing the rigged game with rigged currency. I want to be a part of it when the altcoins wrecks western finance.
Prince Philip’s greatest hits:
https://www.google.com/amp/www.bbc.co.uk/news/amp/39806145
Like Obama, Trump is now controlling the markets.