The Stupefied Shop
As a long term non believer in the equity market’s ability to relentlessly drive higher, even in the face of dubious fundamentals. In other words, an abject loser. Finally seeing this supernatural stock market’s true character revealed last week, in delectable descending destruction, was especially satisfying for the suspect Savant. Yet, this idiot simply can not shake off the debilitating embarrassment of having completely missed the downtown A train express to Broadway & Wall, left standing naked on the silent subway platform, utterly exposed with his head up his ass.
Having now painfully expressed the stinging reality of his ravaged raw wound, the Savant must lumber on, as his his notorious nonsensical nature curiously compels him to witlessly look towards the future. So here it is set forth below in all its dubious glorious splendor. The clairvoyant call, goes something like this.
With the dollar especially strong, respective to the rest of the world’s crushed currencies, and the global economy unravelling significantly more than the stagnating United State at the moment, and with disinflation if not outright deflation clearly upon us. Might Janet and company, with or without a nominal 1/4 point rate cut in September, emphatically emphasize, in no uncertain terms, in a commanding clear policy statement, confirm that interest rates will stay low for an eternity into the foreseeable future. The end result of which, would embolden and energize the thundering herd of happy bulls, supporting the maddening market for a while longer into next year. Moreover, if the Chinese & EU markets should stabilize here, might not the U.S. market make one last run to new highs………..
FWIW, which is clearly less than two cents, the shattered Savant’s play is to wait for the FOMC rate cut on September 17th, watch the market take a quick knee jerk reaction decidedly downward, and then, just as all are the weaker battered bulls sheepishly head for the exits, this Idiot will jump onboard the unexpected underground escalator back up, riding the reestablished upward sloping trend line right into 2016. The suspect Trump trend will lurch higher and higher, as more and more brazen bulls join the trendy herd.
In the super sucky Spring of 2016, it will becomes painfully self evident, even to the perpetually prancing perma bulls, that the global economy can not and will not ever recover with permanently depressed rates through the end of time. At that juncture, most mesmerized market mavens will stand still , as it will have become absolutely clear that even an undue uber ultra low interest rate regime can never slay the worldwide debilitating debt dragon. Furthermore, should the Fraidy Cat FED dare try QE Kibble and Bits once again, in a last ditch policy measure, we will instantly hyperinflate, as the desperation move destroys confidence in the crafty crony central bankers’ malignant monetary magic, finally exposing them as the wicked wizards of Oz that they truly are.