May 9, 2020
Fear Is Quenched As
Greed Becomes Invincible
The continued buying during very bad economic news that started on Friday, April 17th, when the market went up 700 points on bad news, is still continuing and analysts are trying to figure out what is going on.
The economy that was built because we went off the gold standard has a greedy goal and it is now acting insane.
Headlines in recent days...
"Beware of the oddity in this bear rally."
"The economy is in a free fall. So why isn't the stock market?" "Everything is bad, and somehow the market is good." With "...a deadly global pandemic with no end in sight, 30 millian Americans recently out of jobs, an economy that's fallen off of a cliff - a relatively rosy stock market is perplexing."
"Sure the stock market isn't the economy, but right now, it seems particularly divorced from what's happening on the ground. 'The gap between markets and economic data has never been larger...'"
Cassinos are closed, so gamblers are putting money in the stock market. Retailers are putting money in the stock market. These are new frogs jumping aboard the Titanic about to hit the iceberg and sink.
"To be sure, there's no guarantee theis market rally will last, nor that investors have it right. And many traders, analysts, and experts admit everyone is operatings in a black box." "Overall, it just seems that market may be feeling a bit more optimistic about the future than the science around coronavirus would suggest" " ...it makes '0' sense." "...nobody knows what's going on."
"...investors don’t really have a lot of places to go with their money — government bonds are offering super-low returns, if much at all. Among some on Wall Street, there’s a fear of missing out, and it appears retail investors have been playing the markets while in quarantine."
"Fed chair Jerome Powell said the central bank is committed to using its “full range of tools” to support the economy as long as needed. “We have a number of dimensions on which we can still provide support to the economy,” he said. “As you know, our credit policies are not subject to a specific dollar limit.” No gold standard.
Everything the Feds are doing is going to make the crash the ultimate crash of the stock market. The greedy investors are looking for every way they can to make money off this and it's setting them up for this crash. The market is moving sideways and up, then sideways and down keeping everyone emotionally on the edge of their seats and ready to go into a full panic mode once it begins to nosedive down.
“If we haven’t hit the bottom yet, things will get very, very bad, because then you’ll see a lot of cascading effects where a hedge fund will blow up, which means the pension fund that is invested in the hedge fund now has to take that loss, which means they have to de-risk, so they have to move out of equities,” the Goldman associate said. “There’s a very real possibility that people could get washed out, not just retail investors, but everybody.”
In all their greedy planning, the investors are excitedly putting their money in the exact opposite place it needs to be to protect it as part of everyone needing to lose their shirt in order to be pulled into their dark nights. The stock market is going to land in the place, an 80% drop from the February high, where the amount and value of money equals what is in Fort Knox. United States' official gold reserves. And the economy will stay on track from then on and never grow with a weakness, greed or anything negative again.
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