Guest post by Investment Research Dynamics
It seems to never end. The markets do the opposite of what would be expected based on undeniable evidence about the fundamentals and common sense. Just this morning, for instance, the S&P 500 pops up overnight and then promptly goes red after the NYSE opens. Then one of the Fed sock-puppets makes a comment about oil bottoming and the S&P 500 takes off like Roman candle. Overnight Gold was also up about $4. A report hit the tape that some of the ECB members wanted more money printing. Money printing is a fundamental event that should send gold inexorably higher. Instead, gold was slammed $10 as soon at the news item hit the tape.
This drool that is served up from the policy makers and political leaders in the U.S. is nothing short of a laughable insult to our collective intelligence. But, then again, it would seem that this country has slid down that slippery slope into idiocy. I received this email from a colleague who is an investment advisor. He’s one of the few that understand what is happening in this country. Clearly his clients have been mesmerized by the clown show:
I can’t tell you how many times I have been in meeting with investors and explained common sense truths, only to have their eyes completely glass over. Usually, they immediately proceed to ask me about Amazon, Netflix, Apple and Google. People really are that clueless. One of my clients, that owns PHYS, told me he really didn’t want any more than 10% gold and wanted me to look at cloud computing stocks.
I had another client leave me recently because we had an allocation to gold, cash and stocks. They went to Fidelity and purchased 4 growth funds and long term bonds. They told me that Fidelity was a bigger company and they were bullish stocks. I laughed myself to sleep that night and watched their account fall 8% the first week of 2016.
It is totally insane how clueless your average person with investable assets is. I can’t even imagine how insanely ignorant the people that are that live paycheck to paycheck. It’s truly scary because those people really and truly believe it’s the rich that keep them poor and they believe the government is their only ally.
When the day finally comes that gold is recognized as real money your average person is going to be totally shocked. I have a feeling they will blame everyone and everything other than themselves and the good old government.
The hardest part about being a retail advisor is when you first understand that people, even smart people, can’t accept that their beliefs are misguided. People will take it hard when it happens.
I leave you with a final quote I heard years ago: “If what you knew to be true turned out not to be true; when would you like to know about it.” Unfortunately, for most people, they only want to know when it is too late!
Jim Quinn, of The Burning Platform, with whom I often share email chuckles over what’s unfolding in this country, has written a concise commentary titled, “Maybe Valuations Do Matter,” which encapsulates the essence of the madness into which our system has lapsed:
I wonder if the brainless twits and shills on CNBC will be telling their audience that the S&P 500 is now lower than it was in May 2014. That’s right. Anyone in the stock market over the last 20 months hasn’t gained a penny. The S&P 500 is now down 11% from its all-time high in May 2015. Only 40% or 50% more to go to reach fair value.
He concludes that that the stock market needs to drop at least 50% to be fairly valued. I have not had a chance to probe him on this, but I suspect his non-public number is closer to my number: 80%. We were on that path in 2009 until the Fed and Obama bailed out the banks in order to enable them to continue sucking wealth out of the system.
The latest contrarian editorial “vogue” is to refer to the recent .25% nudge in the Fed funds rate as “a policy mistake.” Sorry, that’s not even remotely close to the truth. The policy error committed in this country was preventing the markets in 2008/2009 from doing what they will eventually do anyway. And EVERYONE will end up paying for that mistake.
Out, out, brief candle!
Life’s but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more: it is a tale
Told by an idiot, full of sound and fury,
Signifying nothing. (Macbeth, Act 5 scene 5)
“The policy error committed in this country was preventing the markets in 2008/2009 from doing what they will eventually do anyway. And EVERYONE will end up paying for that mistake.”
Yes, that was a major policy error, assuming that it was not be design, but the big disaster was allowing the US to be taken over by International Criminal Banking Syndicate centered in the City of London and on Wall Street. This was achieved by: 1) orchestrating and funding the election of Woodrow Wilson in 1912 by splitting the Republican vote; 2) meeting in secret at Jekyll Island to write a bill for the formation of the banker-owned Federal Reserve in violation of the US Constitution, which Wilson dutifully signed in 1913; 3) introduction of the Income Tax Act which was passed in 1913 to saddle Americans with debts created by banksters; 4) lying America into WWI which led to massive debt and money printing by the new Fed, the unjust Treaty of Versailles, the crushing and dismemberment of Germany, the Bolshevik revolution in Russia and the slaughter of tens of millions of Christian Russians, the rise of National Socialism and WWII, and the formation of the USSR and more slaughter. And now the banksters have created perpetual wars, the War on Terror, against a strategy called terrorism and are planning WWIII. And you don’t have to take my word for what is really going on, but perhaps the words of a central character in this treason and subversion by the Syndicate might convince you.
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world — no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.” – Woodrow Wilson
Steve LIESman says the markets are STRONG and the jobs numbers are GREAT.
Now who are you going to believe?? There is no doom on CNBC per usual, party on.
Read Jerry Hall is marrying Rupert Murdoch! Blew me away,I don’t know why.