Bizarro world and how far things are crazy…
..think about it, great jobs report, which would say, hey, economy is headed up as people are hiring. This should spur on economic development as people are hiring, more capital investment, more jobs will come from this…nope.
That means interest rates will go up and the whole US market will crumble. If the market will crumble with an additional 50 bps in the Fed Funds rate, how phucked are we as a nation? I mean, what’s the logic. We have so much debt that it will crush us to take on another 50 bps across the yield curve? Once again, if that’s the case, so screwed. If hiring is headed up and things are rosy, why don’t commodities go up as a growing economy will drive demand in building and commodities, nope, smashed across the board.
Will be buying more stocks I like on Monday in the commodity spaces. 8 billion people are not going to stop consuming because their is the potential that interest rates will go up by 50 bps in the next 6 months…..le monde est fou!
PLUS 1 AA….ONE WORD….AILGORYTHMS
Agree.
We are phucked.
And I’ll be dead before I make money again in PMs…
Oh, and agree: LE MONDE EST FOU!
Completely — le monde est fou!
Hey FGC – what do you think – should I make this my motto?
“PLUS 1 AA….ONE WORD….AILGORYTHMS”
Sorry, no.
The word is LEVERAGE.
Sure, Main Street and Wall Street are currently entirely DIVORCED. (not uncommon)
But just because “life goes on” no matter “rates” doesn’t mean Main Street is INSULATED.
Right now, everybody is betting $10 or $20 or $50 dollars of BORROWED MONEY for every $1 of their own money.
They have skin in the game (that they will lose on the first serious decline), then the rest is HOUSE MONEY in the sense that its the global financial system and everyone tied to it, that will pay after that. Socialist heaven, one might call it.
AND RATES are what will drive Thelma and Louise over the cliff.
And Main St will tumble with them.
IDK — Algorithms seems to be a highly likely villan — these markets don’t feel like they are collapsing by informed investors but rather computer trading feeding off each other…. this isn’t new either
“Stocks Should Go Up, Not Down”: Trump Rages At Market Reaction To ‘Great’ Jobs Report
https://www.zerohedge.com/markets/stocks-should-go-not-down-trump-rages-market-reaction-great-jobs-report
Passive money is fueling advances, not “informed investors”. Those are long gone.
And MATH is fueling corrections, run by algorithms sure. Tripping over each other at lightning speed.
What no one talks about, is that the moves seem often to be ignited OVER NIGHT.
So its foreign money kicking the tires.
GDX below $18 Agent Argent. I won.
A Pyrrhic victory if there ever was one.