Will Fourth Time Be The Charm For The Market's Dislocation From Fundamental Reality?

Tyler Durden's picture

Sometimes you just have to step back and laugh. Three times in the last two years, global stock markets have lurched higher four times (fed by a hosepipe full of central bank largesse) only to fall rapidly back to the fundamentally weak reality of the global economy. If ever there was a chart that summed it all up - and highlighted the inexorable optimism that this time it really is different - the current chasm between Global Manufacturing PMI and MSCI World suggests either stocks are off in fairy-land again or there is about to be the biggest surge in the global economy since 2009 (right as currency wars escalate and the debt-ceiling debate in the US threatens more fiscal drag).



and meanwhile the divergence between developed markets (down) and emerging markets (up) continues to grow...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
firstdivision's picture

Potter can fix this.


Bought some VXX this afternoon and I'm praying Potter sustains a finger cramp at 3:30.

BeetleBailey's picture



Yen Cross's picture

 What about q-4 earnings? It's pretty hard to hide from all the revenue misses that are going to be printed.

dirtyfiles's picture

its all about costumers "feeling good"

Debeachesand Jerseyshores's picture

The fourth time is always the charm---------------Oh wait!!!!!!! isn't that suppose to be the third time-------------Hmmmmmmmm.

StoleYourMoney's picture

Patience is a virtue.

LawsofPhysics's picture

No.  There is a very real cost for capital (despite ZIRP/NIRP).  Especially after years and years of captial and resource mis-allocation and mal-investment.  Exponential equations are indeed a bitch.

spastic_colon's picture

i think the markets rallies are correlated to ZH's popularity, ya know, fed crushing arbitrage.

Cognitive Dissonance's picture

But this time it's different. And if not, next time it will be different.

<Tyler, stuff a rag in it. You're seriously disturbing my faith and belief in the "this time it's different" meme.>

Snakeeyes's picture

But corporations got killer tax credits while 77% of Americans saw an increase in taxes! What can go wrong!

Corporate leviathan.


Ookspay's picture

Not my corporation. My business is family owned, we all recieve K1 distribution income which is taxed like dividends. The increase in taxes is huge, I may be laying people off. 

I also explained to my employees today that they will see 3% less in their paychecks due to obama's tax increases. Similar conversations took place in many workplaces today. It will take a month or so but this will become a further drag on the economy as people have less spendable income. I see a perfect storm brewing...

Aurora Ex Machina's picture

Little known, but useful, fact: Stayin Alive is the best music to keep to the required beat to do CPR.

Turns out the 1977 disco hit has 103 beats per minute, a perfect number to maintain — and retain — the best rhythm for performing cardiopulmonary resuscitation, or CPR.[source].


Nothing to see here, not sure why the first graph made me think of that.

ZerOhead's picture

Stayin Alive and Jive Talkin...

Two Federal Reser... errr... BeeGees classics!

Jake88's picture

the next man makes a move, the nigger gets it.

scatterbrains's picture

plus gold telling you this stock pop is bullshit... copper for that matter still bouncing around contained within a triangle. These two would be leading higher and not quietly trying to ease out the back door.

Jonas Parker's picture

Don't show the Algos those charts... you'll just confuse them even more.

Pairadimes's picture

Only Whitney Tilson knows for sure.

q99x2's picture

My car's been running the same way lately.

DavidC's picture

I'm going with the biggest surge in the global economy since 2009...!


WhiteNight123129's picture

There is a perfectly easy answer. PMI is not denominated in USD, otherwise it would go ~UP~ too.


Lord Of Finance's picture

I believe I see a tripple top-toss the salad-stock market circle jerk formation.

Grand Supercycle's picture

Wile E Coyote...

Recurring short squeezes propelling markets higher just ensures the Wile E. Coyote drop will be brutal ~ we are witnessing a mega crash in the making.

Whether it’s caused by fiscal cliff, debt ceiling, Europe or flesh-eating zombies invading Wall St, it doesn’t matter because another crash is guaranteed.

It’s a no brainer.
Charts don’t lie.


Lord Of Finance's picture

The insanity of what we have been witnessing with stimulus gone wild has at many times caused me to doubt what I clearly know about the history of government/fed intervention in markets.

    They inflated the tech bubble, allowed time for deflation to run its course then quickly set the stage for housing and now bonds. They don't want any part of the precious metals bubble that will follow the bond explosion, but they will be guilty as O.J. in setting the stage for that ultimate fiasco to come. But just like 'the juice', they will get off scott free, because the jury(the news and financial media) will be as clueless as the O.J. jury when the time comes to give the final verdict.


    When? Nobdy knows exactly for sure of course, but this last cycle of bubbles, as well as most all other bubbles have about a 4-5 year life span. These low interests rates are getting old now. The bubble is soon to be ripe for a poppin.

nastaking's picture

Samsung plans to launch its first BOCOIN B311 phones this year based on Tizen