The permabull website Zerohedge – – from 2009 through 2021 a friend of the bears, but now a shill for Goldman Sachs and JP Morgan – – have prominently featured all day long yet another mega-bullish story, right at the top of their site.
The implication being plain as day:
- Steve Cohen says buy stocks;
- He’s a billionaire;
- You ain’t;
- So buy stocks, you dolt
No thanks, Steve-o. I’d rather not.
But let’s step back a moment. I vividly remember a time when ol’ Steve made an opposite declaration. He declared a bear market was coming, big-time, and that we were “late in the cycle“.
Please note the SPY chart below. In Steve’s defense (let’s give the Devil his due) the market DID briefly slip lower. But I would hardly call what followed a “bear market“:
Indeed, if we look with a larger viewpoint, the only “Bear Market” was a 3-week one in 2020, well past 2018, which I doubt even Mr. Cohen’s widely-reported insider information links could have ever predicted. On the whole, November 2018 was a great time to BUY stocks, not dump them.
So why would nice, generous, moral Mr. Cohen be saying we’re at the cusp of a huge bull market? I offer two possibilities:
- He’s just a really nice guy and wants to help the rest of us out;
- He’s shamelessly promoting a strong market so he can get the hell out of his paper and convert it into cash.
I’ve got my own guess, and I think it has a lot to do with how he BECAME a billionaire.