"US Equities: What Is There To Say?"

Tyler Durden's picture


In 213 words (surprisingly this time not in the form of just one sentence from this particular Joyceian stream-of-Austrian-consciouness) Diapason's Sean Corrigan does a better summation of "the market" than can be found in any expansive weekend Op-Ed or 100-click slideshow "explaining" all that has happened, and claiming to tell you "all you need to know."

From Sean Corrigan, CIO of Diapason Commodities

US equities, what is there to say?

Successive new highs; record buybacks (Miller-Modigliani and ESOP rules, OK!); multi-year heaviest mutual fund buying; vol a whisker off its Crisis Era lows; margin debt rising as fast as in 2000 and 2007; put-call ratios depressed; cumulative A/D in the stratosphere; junk bonds near yield lows; leveraged loan prices back at Blue Sky, mid-2007 levels—and now the jobs numbers giving everyone an all over warm glow.

The only thing to argue against this is that it’s simply all too good to be true; it’s a function of the crazed, macroeconomic theorizing of a sixty year-old, wannabe-Oz sitting in an office on 20th St. and Constitution Avenue in Washington, D.C., who almost got on the congressional record exhorting his interlocutor to quite belly-aching about the income on his aged mother’s savings and to get her into stocks instead.

For all we can surmise that this is just another in a long series of bubbles, each inflated to ward off the reckoning due from the collapse of its lengthening family tree of predecessors, this all-encompassing experiment not just with our livelihoods but with the wider structure of our very society shows no signs of being called of but, if anything, intensified in scale and extended in geography.

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Sat, 03/09/2013 - 09:29 | 3314597 GetZeeGold
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Sat, 03/09/2013 - 09:34 | 3314605 kliguy38
kliguy38's picture

Ben is telling you very clearly...invest in equities and don't hold onto cash. The velocity of money is key to Ben's strategy, but this is deadly for him and it will be the sword he falls on. He has no chance of exiting the Fed's position without throwing a grenade into the ponzi. Oh.....and one more message from Ben. Gold is not money....and don't buy it.......much better off owning NFLX

Sat, 03/09/2013 - 09:46 | 3314629 hedgeless_horseman
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  1. Paper wealth~never does everyone get out in time; are you really in the know?
  2. Nominal returns~Zimbabwe ring a bell? 
Sat, 03/09/2013 - 10:05 | 3314662 GetZeeGold
GetZeeGold's picture



Thunder Dome - Two men enter, one man leaves.


In a zero sum game......never be the zero. Do you know where your 401K is?

Sat, 03/09/2013 - 10:14 | 3314680 DOT
DOT's picture

My Broker's name is Sertatm  and he says...."Good nite's sleep garanteed"

Sat, 03/09/2013 - 10:32 | 3314699 SafelyGraze
Sat, 03/09/2013 - 10:37 | 3314703 Stackers
Stackers's picture

In for a pound in for a penny.

Sat, 03/09/2013 - 11:09 | 3314742 Acet
Acet's picture

Well, we were talking about Ponzies, so I reckon Bitcoin is well within the theme.

Sat, 03/09/2013 - 11:29 | 3314775 fiftybagger
fiftybagger's picture

Good article.  Just added it to the blog.  Lotsa FUD against Bitcoin.  TPTB know what it is and have for some time.

The End of Ordinary Money


Sat, 03/09/2013 - 12:52 | 3314934 Pool Shark
Pool Shark's picture



Anonymity & Security?

Uh, how about physical gold?


Sat, 03/09/2013 - 11:14 | 3314745 Master_Blaster
Master_Blaster's picture

That's my line....

Sat, 03/09/2013 - 13:01 | 3314945 booboo
booboo's picture

I used to get a "warm glow" in the back seat of my 63 Impala with my gal. Now if I get a warm glow at night it means I am pissing down my leg.

Sat, 03/09/2013 - 16:50 | 3315537 boogerbently
boogerbently's picture

...unlike most sheeple in Amerika who AREN'T pissing down their own leg.

Sat, 03/09/2013 - 11:46 | 3314797 shovelhead
shovelhead's picture

The guys who make the markets do...

The rest?

Well, someone's got to lose.

Sat, 03/09/2013 - 10:39 | 3314708 LG_Knight
LG_Knight's picture

NFLX was the easy call vs. cash six months ago...when I posted as such and was subsequently roasted on this site.

Now cash and gold are the right calls, even if they deliver little return for some time. It is false euphoria time, making it easy to foresee a storm on the horizon.

Sat, 03/09/2013 - 11:53 | 3314811 yatikto
yatikto's picture

His exit strategy is to put the debt in a box and throw away the key.  Ben can exit whenever he wants to, because US is not Zimbabwe; no one is going to call US out on it.  Anyone who does will be silenced.  The value of the dollar = US military power.

The triumverate of the world is money, power, sex.  If any of those legs goes, the whole thing falls down.

We are witnessing the expression of liberal gospel:  Money for nothing, chicks for free.

Sat, 03/09/2013 - 09:42 | 3314626 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I am now spending lots of time thinking about what will replace the US Republic. Obviously, our Republic can not survive when about half the population is unemployable, all of our production has been shipped else where and cronie-capitalism reigns surpreme. Multi-nationals have bet the farm on endless growh overseas, boy, are they going to be dissappointed. Congress is dysfunctional at best.


Sat, 03/09/2013 - 13:33 | 3315005 Race Car Driver
Race Car Driver's picture

> .... what will replace the US Republic.


What is martial law and foreign troops?

Mon, 03/11/2013 - 09:08 | 3318953 phalfa5
phalfa5's picture

that is correct...  and thank you for answering in question form.  Now on to Double Jepordy where the pain doubles


Sat, 03/09/2013 - 10:49 | 3314716 wanwer
wanwer's picture

How do you play it?  That is the question.

Sat, 03/09/2013 - 11:25 | 3314767 in4mayshun
in4mayshun's picture

Got gold?

Sat, 03/09/2013 - 12:29 | 3314885 SubjectivObject
SubjectivObject's picture

I always recommend people to establish, manage, and make regular contributions to their their GO1(d) or SI1(v) account(s).

Sat, 03/09/2013 - 13:56 | 3315052 B-rock
B-rock's picture

Buy every dip -- all day long -- with a tight stop.

Sat, 03/09/2013 - 11:09 | 3314740 gould's fisker
gould's fisker's picture

Pretty soon Cramer's new word will be "bubbliciousness."

Sat, 03/09/2013 - 09:38 | 3314611 Dead Canary
Dead Canary's picture

Yea, yea, you Tyler Turbans think you know it all, but the guys on TV tell me every thing is great. Do you have a TV show? No, you don't HAVE a TV show. So I'm not listening to you. There.

Sat, 03/09/2013 - 09:41 | 3314624 jwoop66
jwoop66's picture

You should be a motivational speaker.

Sat, 03/09/2013 - 09:49 | 3314639 Dead Canary
Dead Canary's picture

I work for the Dept of Justice. My mom got me the job.

Sat, 03/09/2013 - 10:40 | 3314707 francis_sawyer
francis_sawyer's picture

...and HER momma served shrimp... and her momma before served shrimp... and her momma before that served shrimp...


but NOW... you're getting the shrmp served to you ~ RIGHT?

Sat, 03/09/2013 - 11:24 | 3314762 atm0sphere
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the resposnse I liked most from someone was "yeah well I watch MSNBC because it aligns with my worldview, fox doesn't" to which I replied "so you're saying you'd rather take the manure on a spoon up your ass, rather than on a knife up your ass."

Sat, 03/09/2013 - 09:37 | 3314613 eigenvalue
eigenvalue's picture

BUT if you had been long US equities since Jan 1, you would have made a lot of money. And if you had been long precious metals since Jan 1, you would have been bleeding. Ergo just go long stocks. That's where you can become filthy rich.

Sat, 03/09/2013 - 09:41 | 3314623 Abraxas
Abraxas's picture

Great! I'll go back in time one year, sell the PMs and buy the stocks, come back to now, sell stocks and buy PMs. Just one thing. Does anybody, perhaps,  have a time machine to lend? Please.

Sat, 03/09/2013 - 10:07 | 3314664 GetZeeGold
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I wasn't aware all life was created on Jan 1.

Sat, 03/09/2013 - 10:41 | 3314711 francis_sawyer
francis_sawyer's picture

all life is always created on the EXACT day of the chart bottom of whatever you're shilling at the moment...

Sat, 03/09/2013 - 11:28 | 3314774 in4mayshun
in4mayshun's picture

Yes, buy the stock market at all time highs-that has always worked out very well.

Sat, 03/09/2013 - 11:39 | 3314786 Notarocketscientist
Notarocketscientist's picture

And then one day the market will collapse and you will be dirt poor....  or perhaps you will be prudent enough to cash out ... but then what will you do with the cash before it turns into toilet paper.

I have never been a PM type - but I am oh so Mother Fucking Long gold I can't even see the end -  this fucker is going to blow - there is NO doubt about that.

And anyone holding stocks, bonds, property, cash is going to be eating dog food.

Enjoy your riches while you can brother. 

Sat, 03/09/2013 - 12:03 | 3314827 OpenEyes
OpenEyes's picture

Your avatar caught my eye


Sat, 03/09/2013 - 14:00 | 3315058 dog breath
dog breath's picture

your jedi mind tricks don't work on me

Sat, 03/09/2013 - 12:34 | 3314900 AmCockerSpaniel
AmCockerSpaniel's picture

>>>>> Ergo just go long stocks. That's where you can become filthy rich.<<<<< It's also were you can loss it ALL. It's a rigged game. Know that, and keep physical GOLD. It will never be worthless! It is said; "In the land of the blind, the one eyed man is king".

Sat, 03/09/2013 - 12:35 | 3314901 Poetic injustice
Poetic injustice's picture

Robotrader, is that you?

How ya been, I must admit I miss your irrational optimism and hindsight calls.

Sat, 03/09/2013 - 16:58 | 3315554 ebworthen
ebworthen's picture

Do you have your profits in hand or are they still just numbers in the database - a perception of money that may or may not be there next year?

If you did cash some out, have you filed your taxes yet?  What did lecherous Uncle Sam take so he could give it to foreign banks and dictators and/or rebels?

Sat, 03/09/2013 - 09:37 | 3314614 Abraxas
Abraxas's picture

There is the apple, and then, there is the gravity... will the upward momentum of this apple always be stronger than the gravity? Doubtful.

Sat, 03/09/2013 - 09:40 | 3314621 NoWayJose
NoWayJose's picture

The higher it goes, the scarier it gets. The economy has not changed, and as every ZHer knows, this will end with massive bubbles popping or with hyperinflation. I am betting on hyperinflation, since the only hope to pay the debt is to tell everyone we have 2% inflation while prices go up 20%. When that happens, 18% of the debt goes away!

Sat, 03/09/2013 - 09:54 | 3314651 Id fight Gandhi
Id fight Gandhi's picture

What I would like to see is a ZH stress test. With minds smarter than my own, changing variables to see what systemic fallout would come. I know it's NOT going to last, but I'm stumped to see what can crash it.

In the past few years, they amp up the printing. What's the actual limit to what they can actually do before they simply can't? Which variables can derail the stock market surge. Right now, all we are seeing is straight up. Fundamentals at any mark don't matter.

Sat, 03/09/2013 - 10:09 | 3314670 fonzannoon
fonzannoon's picture

Put the 10yr at 4.5% and everybody fails.

Sat, 03/09/2013 - 10:39 | 3314705 NoDebt
NoDebt's picture

Only the important people like the federal government or large banks steaming piles of mortgage and other debt crap.

Sat, 03/09/2013 - 12:01 | 3314824 merizobeach
merizobeach's picture

"I'm stumped to see what can crash it."

That is the big question.  In a word: war.  Ben, Jamie, Lloyd, and the folks at the BIS have many of the macro variables in their hands already, including the US military and the bond markets among myriad others.  The only real variables not in their hands, as I imagine it, are China and Russia, and the occasional loose cannon from NK, Japan, or Israel (and Vietnam, but they've been smart enough not to show their hand yet).  What if these progressively escalating territorial disputes with China continue to escalate to where more than just water cannons are fired and fighter jets only scrambled?  The US is bound by treaty to back Japan in military conflicts, and any hint of US military intervention against China, and within their imagined sovereign territory, could escalate economic conflict such as China dumping its USD and UST holdings at auction until its liquidated.  The last time China did something like this, they suddenly dumped around US$100 billion in the spring of 2008 in response to the negative comments in the freshly published 2007 Human Rights Report; the dollar and global markets plunged.  At the time, China's USD holdings were a small fraction of what they are today.  Surely they would lose a lot of 'value' in liquidating $2 trillion in US paper, but they could diversify into every other countries monies while crashing the dollar.  Then there'd really be war.

Sun, 03/10/2013 - 01:59 | 3316395 Doña K
Doña K's picture

Sadly for Japan, that treaty does not cover the Senkaku islands. However, the US has been reaffirming that it does. Time will tell if China dares.

Sat, 03/09/2013 - 15:31 | 3315349 GMadScientist
GMadScientist's picture

The price of oil, as always.

You can't blow bubbles without making a speculative bubble there too and the economy will tank once it starts crushing business margins (to the tune of 0.5% of GDP per $10 increase).



Sat, 03/09/2013 - 11:36 | 3314782 Notarocketscientist
Notarocketscientist's picture

If that happens the whole system will collapse... I see deflationary collapse

Sat, 03/09/2013 - 13:52 | 3315046 IrritableBowels
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You see deflation, but you're long gold?

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