Anyone who thinks the Emergency -50 bp rate cut is bullish for the economy is wrong. If you believe that CoronaVirus is the cause, you are wrong. If you think the coronavirus is just the "Flu" you are wrong!
If you are a "BUY THE DIPPER", "NIBBLER" or PERMA BULL You are in an extremely risky position as a trader. As I have mentioned in prior posts Coronavirus is not SARS and we are in trouble.
Corona is the trigger, not the root problem. The root problem has been the economy of the world since Dec 2018. Markets don't just sell off 24% for no reason. There is ALWAYS a reason for huge sell-offs.
Let me remind you that
$1 trillion Deficits
Tax cuts
Rate Cuts
REPOs (NOT QE WINK)
Bond rates collapsing
Trump Pump Tweets of FAKE TRADE DEALS
These all occurred not just in the US but Globally China, EU, etc.. Why? Bc the macroeconomic landscape was failing by the summer of 2019. The tried the FAKE MMT approach of flooding the markets with
Liquidity under the false illusion of trying to "stimulate the economy" with a "Mid Cycle Rate Adjustment". Bullschitt! FED marketing to mask the real Global problems. So make no mistake about it
Coronavirus accelerated and exacerbated the already failing Global economy. Central Banks, Gov'ts blew their load prematurely thinking they can avoid a recession using FAKE MMT economics and they all
found out the hard way that it didn't work. Had they saved all the "mid-cycle adjustments and "stimulus" till we actually needed, the impact would have been far better for the ACTUAL economy instead of
ongoing endless cash pumping capital markets.
We are heading for a recession folks. Plain and simple. Unemployment will rise, GDP growth will continue to be revised lower, data will come in worse and worse and all the Global intervention will not work till the Global economy decides to bottom. If you believe I am wrong. Please tell me how will E of P/E grow in this environment? No one is buying VALUE buying the dip near all-time highs. As Buffet says Price is what you pay VALUE is what you GET!
All rallies will start failing from here on in. Be prepared.
If you are a "BUY THE DIPPER", "NIBBLER" or PERMA BULL You are in an extremely risky position as a trader. As I have mentioned in prior posts Coronavirus is not SARS and we are in trouble.
Corona is the trigger, not the root problem. The root problem has been the economy of the world since Dec 2018. Markets don't just sell off 24% for no reason. There is ALWAYS a reason for huge sell-offs.
Let me remind you that
$1 trillion Deficits
Tax cuts
Rate Cuts
REPOs (NOT QE WINK)
Bond rates collapsing
Trump Pump Tweets of FAKE TRADE DEALS
These all occurred not just in the US but Globally China, EU, etc.. Why? Bc the macroeconomic landscape was failing by the summer of 2019. The tried the FAKE MMT approach of flooding the markets with
Liquidity under the false illusion of trying to "stimulate the economy" with a "Mid Cycle Rate Adjustment". Bullschitt! FED marketing to mask the real Global problems. So make no mistake about it
Coronavirus accelerated and exacerbated the already failing Global economy. Central Banks, Gov'ts blew their load prematurely thinking they can avoid a recession using FAKE MMT economics and they all
found out the hard way that it didn't work. Had they saved all the "mid-cycle adjustments and "stimulus" till we actually needed, the impact would have been far better for the ACTUAL economy instead of
ongoing endless cash pumping capital markets.
We are heading for a recession folks. Plain and simple. Unemployment will rise, GDP growth will continue to be revised lower, data will come in worse and worse and all the Global intervention will not work till the Global economy decides to bottom. If you believe I am wrong. Please tell me how will E of P/E grow in this environment? No one is buying VALUE buying the dip near all-time highs. As Buffet says Price is what you pay VALUE is what you GET!
All rallies will start failing from here on in. Be prepared.
Real Macro Economic Investing
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