One of the traditional signs of market tops is individual investors finally succumbing to the lure of apparently easy money and pouring their savings into the stock market. In the past this dumb money flowed into equity mutual funds in general. But today it’s favoring exchange traded funds (ETFs) that, rather than trying to pick winners, simply offer exposure to sectors or broad market indexes.
(Wall Street Journal) – Investors poured $62.9 billion into exchange-traded funds in February, pushing the year-to-date world-wide tally to $124 billion, the fastest start of any year in the history of the ETF industry, according to data from BlackRock Inc. Continue reading »
Marc Faber, known as ‘Dr. Doom’ for his pessimistic views of equity markets, has warned investors that US stocks are vulnerable to a seismic selloff, which could start any moment.
The Swiss investor doesn’t expect the rally’s disruption to be evoked by any catalyst, as the markets are overbought and sentiment is way too bullish for the so-called Trump rally to continue.
“Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche. I would underweight US stocks,” Faber said in an interview with CNBC.
This bearish forecast is not tied to President Donald Trump, according to Faber. Continue reading »
And what could possibly go wrong?
H/t reader squodgy:
“Of course, he’s right. We all know it, we’ve watched the manipulations.
We’ve seen the Shipping Activity Index (BDI) sat in the gutter.
We’ve seen Caterpillar report 5 consecutive years of continuous order book drops.
We’ve watched the food stamps grow to one third of the population.
All these show total disconnect from Wall St & the Fed bullshit manipulation
Stocks prices continuously rise as a result of false purchases by the banks and buy backs by the Companies…..but activity, earnings and returns are rubbish.
Now the truth outs. We are slap bang in a depression & Trump has been set up to take the fall for it.
Yet, being an astute businessman, he knew all this already, and his crowing is equally false. He knew he was going to be the scape goat.”
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Count one of Hillary Clinton’s biggest financial backers, billionaire Warren Buffet, among the biggest fans of the “Trump rally.”
In an interview with Charlie Rose recorded on Friday, Warren Buffett said that since the election day, Berkshire Hathaway bought $12 billion in stock. This was a change in strategy for Buffett, who as it turns out was a net seller in the first nine days of the month, when Hillary seemed like a guaranteed winner in the November election, one which Buffett was selling into.
“We’ve, net, bought $12 billion of common stocks since the election,” he said in an interview with Charlie Rose that aired on Friday. Buffett didn’t identify the securities that he picked. As of Sept. 30, Berkshire had an equity portfolio valued at $102.5 billion. Continue reading »
H/t reader kevin a:
“Great site.. Gives all the mining stocks around the world..”
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Full article here:
by James Corbett
January 29, 2017
Congratulations, America! The Dow Jones Industrial Average has just rolled past 20,000 for the first time ever! Let the fireworks fly, because the ticker tape parade is about to begin! Continue reading »
Internet data mining expert Clif High uses calls what he does “Predictive Linguistics,” to mine the Internet and collects billions of data points to produce forecasts of the future. High has predictions on Trump, gold, silver, housing, stocks, bonds, the dollar, interest rates and even new discoveries that will change the world that are coming out of Antarctica.
H/t reader squodgy:
“The CRASH is already in place for those not in the manipulated financial world.
But Mr High says end Feb through March & April will have notable signs of correction and reality checks.”
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“This time is different”, or maybe it’s just 1929 all over again, because according to Deutsche Bank, after 8 years of easing sent the S&P to all time highs, the only thing that is more bullish than a dovish Fed, is a Hawkish one, and as a result no matter what the Fed does tomorrow, and how it hikes rates, equities can only go “higher.”
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Will the financial bubble that has been rapidly growing ever since Donald Trump won the election suddenly be popped once he takes office? Could it be possible that we are being set up for a horrible financial crash that he will ultimately be blamed for? Yesterday, I shared my thoughts on the incredible euphoria that we have seen since Donald Trump’s surprise victory on November 8th. The U.S. dollar has been surging, companies are announcing that they are bringing jobs back to the U.S., and we are witnessing perhaps the greatest post-election stock market rally in Wall Street history. In fact, the Dow, the Nasdaq and the S&P 500 all set new all-time record highs again on Thursday. What we are seeing is absolutely unprecedented, and many believe that the good times will continue to roll as we head into 2017. Continue reading »
Back in April, we commiserated with BBG ex-trader and commentator, Richard Breslow, who when looking at the ongoing events in markets, had a near nervous breakdown. For those who missed it, here are the key excerpts:
Trading is a hard business. The world is becoming a more complicated place: a number out of China may do more to the price of your U.S. shares in a retailer than, well, U.S. retail sales. Yet creeping, dangerously, into the investment advice dialog is the argument that buying and holding no matter what the event is the winning strategy. If you ever needed a “past results don’t guarantee…” disclaimer it’s especially true now. Continue reading »
As the public is told day after day by mainstream media, if stock prices are up in America, it is an indication that all is well in the economy… consumers can consume, investors can invest, and producers can produce as confident citizens gorge on ever more credit (because everything is awesome). So we wonder what the ‘CNBC’ of these two countries would be saying about their stock markets’ massive outperformance…
Venezuela’s “economy” must be roaring?
Of course the point is, it matters what the numeraire is and with Bolivars hyperinflating and ZimDollars on the verge of hyperinflating as Mugabe prints money once again, these ‘markets’ are merely reflecting the collapsing worth of local currency. But hey, don’t tell the global investing public, stocks up = good news, no matter what, right?!
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“Middle class America just can’t see the wood for the trees. The last 65 years have been paradisic, but the end is coming and nobody sees it or worse, is even prepared to consider it.
All the pieces are in place, yet I’ve just been in contact with all my lot in the States & they’re either shocked about how the campaign against poor Hillary is going, or upset about the muck raking over Donald’s penchant for young girls. Is he really worse than Bill Clinton?
Nobody can grasp they are both from the Rothschild “end of America” stable.”
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H/t reader kevin a.
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November surprise, i.e. market crash/collapse, on Friday?
Will another Rothschild Illuminati Bank (Deutsche) finally collapse?
— Infinite Unknown (@SecretNews) November 3, 2016
Continue to prepare for collapse.
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Preparing the people for what is coming.
When was the biggest market crash of all time (23% in one day)? – in an October, just after a Shemitah (a little less than 3 weeks after) – It was Black Monday in 1987.
Continue to prepare for the greatest financial collapse in world history.
The technical analysis team at HSBC is warning recent stock market moves look eerily similar to just before 1987’s ‘Black Monday’, which saw the largest one-day market crash in history.
On October 19, 1987, the Dow Jones Industrial Average which comprises the 30 large US publicly traded companies, lost 22.6 percent of its value.
— Bloomberg Markets (@markets) October 12, 2016
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he was on red alert for an imminent sell-off in stocks in the light of the price action over the past few weeks. Continue reading »
A curious group of markets – India, Indonesia, The Philippines and Vietnam – have been identified as the best investing opportunities by a group of leading Asia macro strategists, who think that Asia and the emerging markets will considerably outperform the developed world.
While everyone is focused on the US Presidential election, Real Vision TV recently brought together some Asian market experts, to explain why they have recently turned bullish on the region and why institutional money has been underweight the Asian markets for the past five years. A video compilation of the highlights is shown below:
It features some diverse views around the common theme that there are some good opportunities for investors to get in now ahead of the curve. One common theme in the conversations is that investment flows are set to take off in the region, sparked by positive demographic and infrastructure stories, alongside political reform for growth. Continue reading »
Deutsche is way “Tooooooo Big To Save”, thanks to former CEO, Rothschild puppet & Bilderberg Josef Ackermann.
The next several days up to Oct. 12 (Yom Kippur) have a high probability for something “big” to happen.
Prepare for (an epic) collapse.
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“You Can’t Compare Deutsche Bank To Lehman”
… because Deutsche is much, much worse than Lehman.
So move along, there is nothing to see here.
“When it’s important, you have to lie,” is the now well-known mantra from European leaders when the crisis hit. So when a German politician proclaims “you can’t compare Deutsche Bank with Lehman. The bank is in a position to get out of this situation on its own,” it’s time to panic. Just a week after the 8th anniversary of Lehman’s collapse, the multi-trillion dollar derivative book of Deutsche Bank dwarfs that of Lehman… and the credit markets are starting to wake up again.
Following government exclamations that there will be no bailout for Deutsche Bank, Hans Michelbeck – from Merkel’s Christian Democrat-led bloc and a member of German lower house’s finance committee – confirms it is “unimaginable” that the German government would support Deutsche Bank AG with taxpayers’ money. Continue reading »