Tyler Durden

Weekend Reading: A Market In Stasis

The market hangs in a virtual stasis. Over the past couple of months, we have continued to drift from one economic report, or Central Bank meeting, to the next. The bulls and the bears have met at the crossroad.

Weekend Reading: The Coin Flip Market

The problem for individual investors is the “trap” currently being laid between the appearance of strong market dynamics against the backdrop of weak economic and market fundamentals. There will be a collision between the fantasy of asset prices and the reality of the underlying fundamentals. This will particularly be the case if the much anticipated rebound of economic growth and earnings fails to materialize.

Weekend Reading: Valuationally Challenged

As another week comes to a close, we continue to wrestle with a market that remains detached from underlying economic data and clings to recent levels of over overbought, overextended and low reward/risk outcomes. Of course, in the final stages of a bull market, this is what has historically been the case.

Weekend Reading: Willful Blindness

The problem for individual investors is the “trap” that is currently being laid between the appearance of strong market dynamics against the backdrop of weak economic and market fundamentals. Ignoring the last two to chase the former has historically not worked out well.

Weekend Reading: The Global Dichotomy

If the economy is growing, and there is really “no recession in sight,” then why is there such a panic by the BOJ, BOE and ECB to expand their accommodative programs? Why isn’t the Fed raising their benchmark rates? Why are earnings deteriorating across sectors on an unadjusted basis?

Weekend Reading: DNC – Discerning & Notional Conjugations

This week, the headlines have been dominated by the Democratic National Convention pushing Janet Yellen’s latest FOMC non-action to 'page 6'. "Global instability is now the perma-excuse for the Fed.” The only question will be where that instability pops up next?

Why Hillary Clinton's Email Case Is Still Not Closed

Normally, when the head of the FBI under one President says something like "no reasonable prosecutor would bring such a case" as the FBI reported regarding Hillary Clinton's emails, that would be the end of the matter; but Clinton actually still isn’t off the prosecutorial hook of this criminal case, unless and until she becomes President herself.

Weekend Reading: If I Was Janet Yellen

Unfortunately, for Janet, this is the 'trap'. The liquidity will dry up, the inventory restocking cycle will end, and the next “crisis” will be on the horizon with Ms. Yellen remaining stuck near the “zero bound.”  The past opportunities to “normalize” interest rate policy have come and gone. This opportunity will likely pass also and, as always, the Fed will realize far too late they are trapped. But by then, it won’t matter much to investors, or what’s left of them, anyway.

Weekend Reading: Central Banks Save The World

For now, Central Banks have seemingly accomplished the rescue of the entire global financial system by one again lofting asset prices higher. The problem, however, remains the underlying fundamental issues of weak earnings, slowing economic growth and a collapsing Chinese economy. There is a point, unknown to anyone currently, where the failure of monetary policy will occur.