Gonna wrap this up. Why is this time different?
Exogenous even meets already loose Fed and global central bank policy means NO BULLETS in the chamber. Moreover, the Fed came out intraday to jawbone and markets went down anyway. They shot their load.
Behavior is being affected on a global scale, which means GDP will grind to a halt and probably go in the red.
More than that, we are seeing a wholesale collapse in all commodities and businesses are scaling back operations out of caution. While the uncertainty is present, it’s hard to buy stocks. Since we don’t know, my bias is for lower prices — even though we’re so oversold.
I look around me and see a sense of entitlement everywhere. Advisors screaming to their clients to hold stocks — mainly because their fees depend on it. We normalized $1.5t market caps and everyone thought it could last forever. Borrow billions to do share buybacks and hike dividends was the formula. Now with businesses slowing down — what’s left is the net result of grift and corporate malfeasance on a massive scale.
In the end, we get the market we deserve.
90% cash, long SOXS.
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