Quarterly
Indices may very well make new highs with the recent & upcoming liquidity floods from every central bank. This could go on longer than most think since we have the last (or one of the last) positive yield in town that can be taken to zero and then some. If you want to pick up pennies in front of a steam roller, have at it.
Divergence between price and momentum with the backdrop of debt-based stock buybacks and slowing macro indicators doesn’t bode well for the near future. Then consider that the main owners of these stocks are the top tiers of society, most of which are at or nearing retirement age. Who will buy these assets from them at current prices or higher in order to fund a leisurely retirement with fresh gray sweats and adult diapers? Student loan strapped millennials? Not-gonna-buy-a-single-family-home iGen? Nope.
Either a massive haircut is inbound or the Fed and other central banks will pay top monopoly dollar for these on the backs of taxpayers. Either route sucks for the bag holders who will see their retirement accounts cut in half or the purchasing power of the dollar plummet after cashing out.
Consider some counter-cyclical investments or at least read up on options and inverse ETF’s to buy some insurance. Great money to be made trading this in both directions pretty soon.
Indices may very well make new highs with the recent & upcoming liquidity floods from every central bank. This could go on longer than most think since we have the last (or one of the last) positive yield in town that can be taken to zero and then some. If you want to pick up pennies in front of a steam roller, have at it.
Divergence between price and momentum with the backdrop of debt-based stock buybacks and slowing macro indicators doesn’t bode well for the near future. Then consider that the main owners of these stocks are the top tiers of society, most of which are at or nearing retirement age. Who will buy these assets from them at current prices or higher in order to fund a leisurely retirement with fresh gray sweats and adult diapers? Student loan strapped millennials? Not-gonna-buy-a-single-family-home iGen? Nope.
Either a massive haircut is inbound or the Fed and other central banks will pay top monopoly dollar for these on the backs of taxpayers. Either route sucks for the bag holders who will see their retirement accounts cut in half or the purchasing power of the dollar plummet after cashing out.
Consider some counter-cyclical investments or at least read up on options and inverse ETF’s to buy some insurance. Great money to be made trading this in both directions pretty soon.