Fly Buys: PWAV, CHNG

Based upon the will of Tengri, I bought PWAV and CHNG.

Disclaimer: Trading ahead of elections may lead to quick decapitation.

Like gluttons in a room filled with decadent desserts, we want it all. Two years removed from such a “tragic and debilitating” recession, the markets are ripping to the upside. The market surge in 2009 was understandable, coming off the lows. However, what we are witnessing today is simply hedonism, stemming from a deep rooted sense of entitlement as a people. I say this without the taste of sour grapes, 75% long going into today’s trade.

We wanted our internet in 2000, until it crashed the economy. Then we didn’t like the internet. So, being the fickle little pickles that we are, we opted to put our money into real estate, fueled by cheap money and zero standards. When that gig was up, we walked away from our investments, without a care in the world. Hey, it wasn’t our problem. Blame those bastard bankers. But the bankers didn’t want to pay either. They said “we are too big to fail and it’s not our fault. Blame the politicians.” The politicians ate it up, partly thanks to all of the money they were getting from the banks, and bailed them out.

Everyone’s happy, right?

Not exactly.

Now everyone wants credit again, since the banks are flush with cash again. Hell, the politicians allowed them to hide their losses and they are getting free money from the Federal Reserve. We want free money too! But the bankers don’t want to lend us anymore money, since they have an easier gig: front running the Fed and buying treasuries with the money that the Fed gives them.

The people of America are outraged by this relationship and the politicians eat it up. They form “Tea Parties” and promise to return American back to its former glory. The people love that idea, especially because the current group of politicians are indolent jackasses. It’s a no-brainer.

But the people are still mad, watching their IRA’s and 401k’s go down. Miraculously, the market ignores all bad news and trades up big, spawning a new form of investor who is unafraid of risk. After all, if the Federal Reserve is handing out next to free money and China is growing at the scientific rate of 9.5% every quarter, hell, nothing can derail stocks.

Like the upright walking pigs that they are, asset managers pile into equities, without fear. They have no fear because it’s not their money at stake, just a bunch of blue collar retards from Dumbville, USA. The folks over at Dumbville are elated with their monthly account statements and begin to open up discount brokerage accounts to get a piece of the action, using discretionary income. They buy all sorts of stocks, like NFLX, AMZN, CRM, or whatever Cramer from CNBC is promoting on a given day. It doesn’t matter that the upright walking pigs, the politicians and the Fed got it wrong during the dot com era and during the collapse of the housing market; because “it’s different this time.”

And the circle of destruction continues…