Ferrari

Now that IBM, Goldman Sachs, Bank of America, JP Morgan and the NYSE all agree blockchain technology will dramatically transform finance and capital markets, how does the investor capitalize on the paradigm shift? First, by understanding the concept of "Pathogenic Finance", autonomy and Zero Trust.

It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party and it all well south very, very quickly...

George Orwell explained the cynical mechanism of Perpetual War in "1984" as a means to control the masses through terror and scarcity. Western Civilization has been embroiled in various continuous wars since Hitler invaded Poland. The Western public has passively abided Perpetual War, not because of scarcity, but because of consumer abundance, which was developed by virtually anonymous men like Edward Bernays in the 1920s. This is how men in the shadows transformed the American citizen into the American consumer, thus turning the public into a docile, unwitting accomplice in the mayhem which envelops the globe which so enriches those on high.

The flip side of falling interest rates is rising bond prices. Bonds are in a ferocious bull market. It's gobbling up capital like the Cookie Monster jamming tollhouses into his maw.

“In metros with high-income growth, unaffordable mortgage payments can become affordable within a few years. For millennials, buying an unaffordable Home isn’t always a bad idea."

Earlier today, Ferrari reported a great quarter. There was just one problem: Ferrari announced that while sales across the rest of the world were solid, rising by 114 and 159 units in Europe and America, to 815 and 682 units respectively, unexpectedly sales in China tumbled by 24% in the third quarter, or down 50 units Y/Y to 157

From its highs at $60.97 (after opening at $60), Ferrari has crashed over 16% and broken below its IPO prices today...

The drop had begun before the US open but shortly after the Ferrari IPO opened (and The Bank of Canada maintained its rates), all hell seemed to break loose. Bond yields started tumbling, stocks broke lower (S&P now red), and commodities all plunged in sync...

With its IPO price of $52, Ferrari's relatively small float is in great (speculative) demand apparently:

*FERRARI OPENS AT $60.00/SHR, IPO PRICED AT $52

However, after trading up to $60.97, it seems some profit-taking on the "limited to 10,000 cars" automaker is in order...

• Global Stock Markets Edge Higher Though Global Growth Concerns Weigh (WSJ)
• Nikkei up 1.9% because Japan export growth slows sharply, raising fears of recession (Reuters)
• Saudis Risk Draining Financial Assets in 5 Years, IMF Says (BBG)
• Syria's Assad flies to Moscow to thank Russia's Putin for air strikes (Reuters)
• US Prosecutor Preet Bharara Probing Daily Fantasy-Sports Business (WSJ)
• Syrian army denies Russian ground forces fighting in Syria (Reuters)

With the ticker symbol RACE, what could possibly go wrong?

With the Federal Reserve still hinting at raising interest rates, but trapped by weak economic growth, will the next big move by the Fed be another form of monetary accommodation instead? Or, are the underlying dynamics of the economy and market really strong enough to shake off the recent weakness and continue its bullish ascent?