Corporations Are Buying The Dip, So What The Hell Is Your Excuse?
Don’t worry, you can always lean on the price-insensitive corporate bid.
Don’t worry, you can always lean on the price-insensitive corporate bid.
Of course this “fundamentals-based” excuse will be couched almost entirely in terms of the assumed sugar high from myopic fiscal stimulus and deficit-funded tax cuts.
“At the end of the day, the real scandal of central banking is that it takes credit for what it doesn’t cause and can’t achieve in the main street economy, while ignoring the mayhem its machinations bring to the financial system.”
Whatever the case, it looks like Goldman’s buyback desk isn’t enough to stop the bleeding in an acute situation…
“That’s right. The taxpayers and future generations be damned. Apparently, it doesn’t matter how many small businesses, farmers and entrepreneurs get elbowed out of the capital markets by Uncle Sam’s $1 trillion per year borrowing spree: Mitchels & Chuckles intend to keep the Washington Monument open and the Imperial City’s 3.7 million employees paid in full come hell or high water.”
“Donald Trump is walking himself right into a miserable trap. He and his putative “advisors” are apparently so blind to the severe headwinds facing the financial markets and the deep structural impairments plaguing the US economy that they have eagerly embraced a veritable fairy tale.”
“But that’s not the half of it:Â Those massive buys were accompanied by a giant amplifier in the form of front-running speculators and arbitragers who hang around the casinos.”
“Bannonism just gave a thin veneer of ersatz nationalism to what was otherwise the Donald’s own dogs’ breakfast of protectionism, nativism, xenophobia, jingoism and strong-man bombast.”
“Yet there is something about Michael Wolff’s tirade that deeply resonates, albeit on the other end of the Acela Corridor. We are referring, of course, to the ‘idiots’ who are buying the S&P 500 at 2735 and earnestly debating the pros and cons of bitcoin at $16,000.”
Grab the torches and the pitchforks.
Super bullish with (more than) a hint of tail risk.
It’s like Bigfoot. Or Nessie.
Spoiler alert…
“Be careful, it bites back.”
” Stock ownership is highly concentrated among the wealthiest 1 percent of Americans – and half of all Americans don’t own a single share of stock – so the Republican plan will be a bonanza for America’s richest.”
“In addition, we hear things like… I don’t want to leave a footprint across the day for some High Frequency sniffing algo.”
“…which have morphed into a type of Black Hole. Money goes in and stocks never come out (as least for now).”
“We must be prepared for volatile stock markets, and can not expect such a return every quarter.”
“But big banks want more.”
“The market keeps going up and quant models and passive index funds don’t care why, just that it is. And they choose to or are forced to keep participating.”
“Outside of a crisis, changes in share prices and earnings highly correlate, and no more so than today.”
“Then, my colleagues and I spent three months analyzing all 33,000 lives ended by guns each year in the United States, and I wound up frustrated in a whole new way. “
“I wonder what Madison would have to say about that today.”
“However, by 2008’s final quarter, corporate debt reached 523% of internal funds and the high-yield EDF soared to 10.33%. At the same time, a mild recession was turning into a global calamity.”
“Painting over cracks”…
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