This is the first time, within the last three years, the markets have pushed a 3-standard deviation move from the 50-day moving average. Such a move is not sustainable and a correction to resolve this extreme deviation will occur before a further advance can be mounted.
The final irony in all this: the real enemy of democracy and freedom of the press is The Washington Post and the rest of the billionaire/corporate media. The only way to escape the Corporate Media's Gulag of the Mind is to stop watching their TV channels, turn off their radio stations and stop reading their print/digital propaganda--except of course if you have a taste for dark humor.
"... we believe that the equity market is still at a level that can cope with moderately rising bond yields. We estimate that a rise in US bond yields above 2.75% or probably between 0.75-1% in Germany would create a more serious problem for equity markets: at that point we would expect that any further rises in yields from there would be a negative for stock returns." - Goldman Sachs
Former investment bank, and co-founder of dot com bank Robertson Stephens, accused Theranos and its founder Elizabeth Holmes, in a lawsuit filed Monday of making false and misleading claims about its operations and technology while soliciting money from investors.
According to Morgan Stanley, 2017 will be a year in which odds of a boom and bust have materially increased, consistent with a late-cycle US environment. So late, in fact, that one look at the chart below shows the US cycle has not only plateaued but is now stalling and is turning over.
Former Dallas Federal Reserve Bank President Richard Fisher recently gave a speech identifying the Federal Reserve’s easy money/low interest rate policies as a source of the public anger that propelled Donald Trump into the White House. Mr. Fisher is certainly correct that the Fed’s policies have “skewered” the middle class. However, the problem is not specific Fed policies, but the very system of fiat currency managed by a secretive central bank.
"The only way to extricate ourselves from the present mountain of debt is to be more productive. Growth is the only way out of debt; you cannot inflate yourself out of debt, even if this is the go-to agenda among policymakers. Ultimately, change will not come because we want it. It will not come because we decide on it. It will come because we need it."
Following news over the weekend of cancelled meetings, Saudi dropping out, and disagreement over who will bear the brunt of any cuts, oil prices had faded notably (testing towards a $44 handle). But then, someone unleashed the algo-friendly 'O' word and prices spiked... Iraq’s Oil Minister Jabbar al-Luaibi is optimistic a deal will be reached - sending WTI up close to $47 and into the green from Friday's close.
Debt reduction and the visible reduction of what is seen internationally as overbearing statism in the U.S. economy will be critical to building back long-term U.S. global capabilities. The U.S. has not seen such an opportunity for strategic reversal since the Reagan Administration. But only if the incoming Administration adheres to the principles which won it the election, and avoids the compromises which the bureaucratic base of government will attempt to force on it to avoid disruption of the status quo.