Just like several other segments of this four year Bull Market built on Free Money, this past several weeks have been historic in their extreme. Like past surprise announcements of QE, markets lifted with the most extreme levels of market sentiment, internals, overbought, etc. So much so that the rule books have been re-written. All told, the trillions from around the world have served to buy a guarantee of new highs in the civilized world’s Bourse’s (Japan the exception).
We are now here, a spit from all time market highs. And now, NOW, media is promising that the individual investor is coming back en mass.
There is hardly a news event that could derail it. It is a foregone conclusion, and implicit guarantee. But you cannot buy an individual stock because individual stock volatility is off the charts. Overall market movement has been vanquished, with one direction being the norm. Even bond yields have ticked up to the high end of their trading range.
Corporate America only spends and hires if their stocks are rising. When they don’t rise, they don’t spend. Forget about people getting jobs. The Investor Class can spend enough to bolster spending. The markets are screaming: fuck the 47% as they are hopeless and they simply don’t matter. This is gospel fact. Bernanke’s plan is working.
The discomfort level for non-participant and assorted wallflowers is now off the scale. They are feeling as sick to their stomachs as the long and wrong group are when markets are crashing. Remember those times? I didn’t think so.
This heady lopsided phase only ends with a parabolic blowoff to new highs before an extended period of distribution sets in. But this month can happen over and over again with $85 billion per month. And there will never be any consequences.
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No apple longs are sorry because other stocks in the portfolio up 20% or more.
There’s still some cheap stuff. Dry bulk shippers for instance.
400 more pts. on the dow,and it’s 07 all over again,exuberance and all. all the retired folks that are the moms and pops want nothing to do with stocks, at least the ones that i know that have the cash to do so. they call it a waste. beside,1/3 of our total population is either un/under employed or collecting some sort of sustenance. so yea,very delusional.lets see what happens after the dow finishes it’s multi year cup,albeit a five year one.
I’m a nobody, but I agree with your view, Scott. Bernanke and the Central Bankers are winning. The 47 percent are garbage and do not matter, unless they start rioting. And apparently the government is working on being ready for that.
“And there will never be any consequences.”
Until there are…