Friday, April 24, 2015

Take Out 'Em Tin Foil Hats Boys!

Today we take another dip into the Twilight Zone brought to you by me, your curator of our fringe content provider, Zerohedge.

The largest sovereign wealth fund in the world, Norway, has comes out guns a blazin'. Slamming central bankers manipulating markets, the obsession on monetary policy and high frequency trading, it's pretty much the trifecta of conspiracy theories.

Steen Jakobsen has come up with another view. I do respect the man immensely for always speaking his mind, rather than conforming to market consensus. Ready for what he thinks?

With "zero growth, zero inflation and zero hope", he thinks a crisis correction is the only possible outcome of a zero environment. I concur. He also thinks that when the Fed hikes later this year, that would be the catalyst. Again, I agree and have said that before as well.

Zerohedge had this chart posted on their day end recap, and I think it is something pretty interesting to note.

Which is strongly corroborated by this data, which is jobs dropping at the fastest pace in 6 years.

In the last 50 years it has never been more expensive for the average Joe to buy stocks. Hmm...

I think it has to be said again and again and again until I get this drilled into my thick skull,

The stock market is not the economy.... (part 1) (part 2)

Of course, it is entirely possible for these levels of valuations to persist or even increase. No one said that the market was rational. - GMGH, 25 Feb 15

Which coincidentally is what the youngest billionaire in the world just reiterated in a different form about the tech industry now. If all your investors are momo investors placing irrationally high levels of growth on your company and it still looks expensive, maybe it really is expensive?

I mean, if the CEO of Exxon just said oil prices looks crappy for the next few years, who are you going to believe? Him or that analyst that just graduated and has been on the job for less than 5 years?

Bear with me until the bear market comes, then I'll be right for sure. Don't you know that broken clocks are still right twice a day?


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