Don’t forget, when the crisis struck in 2008, oil was well north of $100. It was a blend of fuckery, unbelievable to most. Asset prices spiraled lower, as commodity prices soared, leaving most penniless at the pump. Markets climbed higher again, as commodity prices raced higher. My raw commodity index in Exodus was up a little more than 1.5% today, stretching its YTD gains north of 10%.
Simultaneously, the flight for yield continues, providing succor for the shares of TLT–which have been on a relentless climb higher since January the first. Let’s also keep note of the rise in gold, higher by 1.5% today, boosting the mining sector by 4%. It’s worth noting, I took positions in GLD, AU, NEM and AUY today, as part of a core thesis pivot from cash into gold.
The market isn’t supposed to be pricing in deflation via TLT and inflation via GLD at the same time. It is because of this toxic concoction of a perfidious nature that I am inclined to believe a ‘risk off’ hedge is being built into a Vixless, lazy river, drift upwards in equities.
Volatility is nil.
Complacency is at new highs.
Commodities are ripping.
The dollar is sinking.
Govt yields are sinking.
The BOJ and the ECB are artificially reducing borrowing costs for sovereign and less than stellar corporate debt.
Eventually, this has to end, with the depreciation of fiat currencies, from which all of this chicanery is financed under.
Both gold and treasuries are the safest bets in a world filled with financial engineering and fuckery, largess.
If you enjoy the content at iBankCoin, please follow us on Twitter
Break out day for 52 week new highs. Highest readings of the year.
It’s the end of times as we know it.
– The P/S metric is higher today than it was at any time in the ‘07-’08 period
– US bank lending standards have tightened for three quarters in a row
– median US net debt-to-equity ratio is at the top of the historical range (higher than ’07)
– profit margin proxy – the difference between corporate pricing and wage growth turned negative in Q4, first time since ’08
– – Lowest volume of year yesterday (just for giggles & shit)
– – Let’s throw China in at the end just for fun
Equities and Statistics will have to reconcile at some point, That’s that Bottom line That’s your controlled market being kept up for whatever (and any) reason they want to keep it up
Bought a slew of gold and silver miners/explorers with my remaining cash on hand (mostly small players), GDX, DBA, & DBC too. Put tight stops on any market/sector ETFs on hand.
I’m packing up my things, please save room on the ark for my family.
Can’t decide if I want to throw money at any of these high yield plays that are ramping up
Thoughts?
Really appalling how the networks (esp. CNBC) don’t tell the people what is really going on in the markets…
this is the 2nd inning of this move.
Fly said about a month ago that if you weren’t on the ARK already, he’d hit you with oars as you tried to swim to it. The downfall was be swift, fast and without warning. Stairs up, Elevator down I think a wise man once said.
Why be in treasuries with the depreciation of currencies?
king dollars reign supreme
will you be demanding physical delivery of the yellow metal?
Where is my friend Sir Hugh Hendry ?
Regards
Chuck Bennett
“Eventually, this has to end” — I’d like to think so, as this seems to just be a free lunch.
Alas, perhaps there is no justice, and this goes on forever — shit, Japan’s been conducting chicanery for literal decades.
The picture is a good example of the art of lighting for black and white photography.
It must be end times if The Fly is buying gold.
I fear Le Fly is going to roll out JakeGint’s corpse for a tour about the hallowed halls of IBC Weekend at Bernie’s style.
I expect “I bought Bitcoin” blog within 30 days.
I love it when you and OA have competing theses, Fly. It’s like watching 2 gladiators battle.