Ahead of Jackson Hole (August), fellow fucktards from the internets, are you man enough to sell short here? The debt cloud is thick and there seems to be no hope for Greece, Portugal or Ireland. After they fall, Spain, Italy and the entirety of South America will be next. The effect on equity markets will be catastrophic, which will lead to a tightening of credit that will squeeze corporations and American municipalities.
If I know this, all of the asshats at the IMF and World Bank do too, no?
In my estimation, the only thing that truly derails this market is GDP growth. The cards are definitely stacked against the bull camp. The economy is not weak, per se. I realize many unskilled idiots are without proper employment. Then again, that’s why they are unskilled. If you want to earn a decent living in this country, bring your fucking A game or go home crying on your food stamps debit card. Western economies will still grow by 2% in 2011, despite high unemployment and a fucked up real estate situation. If you look at the Dow 30 components’ forward multiples, they are all low double digits, some high single digits. Understand, this is incredibly cheap, on a historical basis. It’s really, really hard for me to be bearish here, based on the fundies.
Based on momentum, I do not like the recent action in commodities. Over the past three months, most commodities, sans sugar, have been poleaxed. We keep ebbing between hyper inflation and severe deflation. It’s totally and unequivocally retarded the way investors are placing macro-bets. One week bonds dive, the next soar. Sooner or later, the market is going to have to pick a theme. It’s either the Western economies print more to get out of their mess, or accept austerity and sovereign failure, which in turn will lead to currency failure, to some degree.
The choice is pretty simple, when approaching this with logic and without idealism.
What are you going to do?
In other newz, it’s Woodshedder’s 1000th post!