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At the latest Jackson Hole resort vacation, Powell trumpeted the “significant reduction in holdings” by the Fed, suggesting that, by golly, they had made astonishing progress shedding all those trillions of dollars of securities holdings. Well, allow me to give that suggestion some perspective.
I’m already seeing plenty of chatter about how the sell-off is over, and it’s back to buy, buy, buy again. Yeah, well, I don’t think so. Below I present to you the up-to-date charts of a variety of important indexes, each of which have been divided by the price of gold. This representation of equity values, in real money terms, is a more honest and meaningful portrayal of value.
Here’s the all world index which, like just about every other item, shows the price action cleanly within the confines of what could be a massive topping pattern. This rounded top is similar to the two which preceded it, but vastly larger.
Humans are, I believe, fundamentally decent and honorable creatures. A tiny percentage of them are psychopaths, sociopaths, and malevolent, and Treasury Secretary Janet Yellen is one of the best-known and powerful among them. She runs contrary to everything I hold dear: natural, organic markets defined by the creation of true value and the free exchange of goods and services in an environment which rewards creation and punishes sloth and corruption. This lifelong government shrew had her greatest victory yet six months ago when she created this monstrosity:
The big event this week, ostensibly, is the jobs report. Judging from the past seven years of data, I’d say that we’ve been hammered about as low as we’re going to go, and it’s going to be a yawner. As we approach September, which starts this Friday, that has historically been the most bearish month of the year. I’m not sure what will compel its weakness this time around, should it indeed transpire, but here’s hoping!
