This is precisely the type of tape I want to buy into. When traders who were formally permanently bullish give up hope and acquiesce to market forces, I buy their blood and drink it up. We have FX dislocations, market pricing shenanigans and most importantly the treasury market is in flux, with bonds PLUNGING in price. This will have a deleterious effect on our under-funded pensions, such as the States of NJ and CA.
But that’s for a later discussion.
When we are talking the end of Pax Americana, our timeframe is a decade — but it’s happening now and has been happening for over a decade. Our influence is waning and China is ascendent. But nothing goes up or down in a straight line and we are approaching levels of apathy that make for an appealing buy the dip moment.
I usually buy at 5% increments, but will now reduce that to 2.5% in order to achieve flexibility.If you enjoy the content at iBankCoin, please follow us on Twitter