S&P 500 stocks

Behold: A Whole Bunch Of “Bull”Sh*t

Now, look. The thing about predicting the future is that you can’t ever really be “wrong” if you don’t put an
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1 comment on “Behold: A Whole Bunch Of “Bull”Sh*t

  1. Funny, I was just thinking about this subject today. How you, and other “bears” are being heckled for your pessimistic position but that sometime you will be proven right. But when?

    I agree with you. I read your articles on Seeking Alpha and recently found this site. I admit I don’t understand your complex explanations sometimes, but I get your points – things are right. The fundamentals are completely fu*&ked up. Now ordinarily, I am a positive and optimistic person. I believe things will work out for the best in life if one thinks positively, applies themselves, works hard, etc etc. But that’s out the window with today’s economic and financial fixed game. I received an executive MBA last year. In my Econ class, my professor discussed the massive amounts of debt across the world, and in Finance, we discussed the extreme financial engineering that companies have and continue to engage in with non-GAAP adjusted earnings, stock buybacks fueled by debt accompanied by paltry earnings growth (if not negative). You know, textbook fundamental shit that makes sense, the basics. So, I needed no more convincing – it’s all going to go to hell in a hand basket. But when? So I went to cash. And stayed in cash. Still in cash, but I have less now after messing with short volatility ETF”s (I know, I know, what a dumb ass, but don’t rub it in. I had to learn for myself by losing my ass).

    As you have emphasized using numerous examples, the “black” and “grey” swans don’t seem to scare the market anymore. Volatility is non-existent. But recently, I figured out why stocks continue to go higher and volatility is pushed down without regard to fundamentals. There is an unprecedented amount of money pursuing a diminishing number of stocks. There are half as many publicly listed companies today than 20 years ago. And the ETF’s magnify the shrinkage of available stocks by funneling more money into the limited number available. Couple that with the central bankers flooding the world with unprecedented amounts of money, all this capital seeking a positive return. What a powerful force this is, and I wonder more and more, might overwhelm the fundamentals longer and longer. The massive amount of money chasing returns could make it more difficult for a sharp sell-off to occur. I still agree with you and appreciate you emphasizing the complete whole bunch of bullshit going on, and on, and on. But does it really matter with the sheer structural force of trillions of dollars of money sloshing around ready to buy on any little dip?

    Thanks for allowing the rant. Keep up the writing.

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