Thu, 15 October 2020
According to Mish, the market has followed the exact pattern she was anticipating. Election outcome won’t have a major impact upon on the market. Covid vax is weighing upon the market. Fires are raging but it’s not affecting the market, yet. Is Robinhood a bad thing with young traders pumping their stimulus checks into the market? It’s kind of like the old days where traders ran from pit to pit following the latest trend. Understand one really big lesson, no matter how good things look, with burgeoning debt and stimulus, there could be a bubble. The market doesn’t always come back. Every investment you make should be started with how much of a loss you can stand. Before using options, you need to understand them. Write her at mish@marketguage.com |
Thu, 15 October 2020
It's amazing how Americans and people around the world accept the same line of garbage; the cure to the economic crisis is actually the disease. Ever escalating debt is what got us into this mess in the first place. And as usual, the powers that be solution is ever more debt at an ever accelerating pace. Does that even remotely make any sense? Intractable inflation, a bond death spiral, constant monetization will eventually result in Fed not being able money to print our way out of it. Right now, Apple’s 10 year bonds yield is below the 10 year Treasury. Jerome Powell wants higher inflation, perhaps double digit and with the cooperation of the Congress and the President he will get it. Paying people to lay fallow and not produce is clearly not the path to prosperity. And that's where we find ourselves now. |
