Visualizing The 'All-In' Hope That QE3 Will Save The US Economy

Tyler Durden's picture

Presented with little comment but to note the somewhat exponential exuberance in US cyclical stocks (relative to defensives) that has gradually accelerated since the Fed launched QE3. If ever there was a chart of 'hope' or 'faith', this is it.



Chart: Credit Suisse

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toys for tits's picture

The unstoppable glorious Hindenberg is lifting off.

flacon's picture

What iscyclical to defensive ratio?

Thomas's picture

It's the Lusitania.

Pool Shark's picture



You mean it was secretly carrying munitions like the Germans had claimed all along?...

[brings a whole new meaning to guns 'n (in?) butter...]

OpenThePodBayDoorHAL's picture

Divide 10 by 3. You get 3.3333333etc.

Now multiply that by 3: you get 9.9999999etc.

Proof that 10 = 9.999999etc.

Pool Shark's picture



On a long enough timeline the difference drops to zero...


BringOnTheAsteroid's picture

Holy shit, that just blew my mind. Is that missing 0.00000000000000000000000000000000000 . . . . . . . 1 what the algos are skimming every 0.0000000000000000000000000000 . . . . . . . . .1 seconds.

It all adds up now. 

McMolotov's picture

Another metric which probably means exactly jack shit in the glorious era of Big Ben printing $85 billion a month out his ass. The Europeons need to have more faith that Ben can save the day.

NEOSERF's picture

Exactly, if you trade against this you are killed.

LongBalls's picture

+1 Everytime I tried to play the fundamentals in this market by shorting it I have been gang raped by Benny and the boys. The only shorts I place now are on PM's. I take the profits and buy the physical. If it's not in your hands, you don't own it. Remember that.

A is A's picture

Ownership of cyclical stocks to defensive stocks, aka how doped up we are on Bernanke bucks. 

Cognitive Dissonance's picture

Lift off. We have lift off of the US Space Ship QE3, Ponzinomics last great tribute to Too Big Too Fail.

Beam Me Up Scotty's picture

Rockets continue to climb for a short while after they explode too.  Eventually, they end up in the ocean.

CheapBastard's picture

Hopefully this stock bubble compensates for what the beleaguered  consumers now face in awe:

Moar toll roads, higher property taxes, higher school "security" taxes, the new internet sales tax, higher postal rates, higher gas prices, and on and on.


BTW, I'm surprised no one has asked me how my New Life is going with my recently acquired Japanese Love Doll, Miko:


It's no wonder these Japanese exports are holding their economy afloat. I wonder what percentage of sales of these goes to the PRC?

Translational Lift's picture

The ride down the other side should be thrilling ..........

sunaJ's picture

Remember to jump at the last second.  I hear you can survive if you do that.

Express elevator to hell...

YHC-FTSE's picture

+1 nice analogy. Reckon most people here would rather take the golden emergency stairs.


tradingdaze's picture

I'm investing in Attends because it's going to scare the sh&t out of me.

Beam Me Up Scotty's picture

I am to young to know, but I thought the were called Depends.

akak's picture

It depends on where you buy them.


PS: I was in a Costco yesterday, and I swear they had a third of an entire aisle devoted to these adult diapers.  Who ARE all these people who are apparently continually shitting their pants?  (Now, if I were shopping at the Washington DC or Brussels or Nicosia Costcos, I could understand it ...)

TeamDepends's picture

And you will have full control of your bowels when Bernanke looks right into the camera and says, "We are f&cked"?

akak's picture

As always!

Besides, I don't need B.S. Bernanke's official pronouncement to tell me that.


PS: Appropriate handle, given the discussion.

TeamDepends's picture

Okay, you are in your backyard barbecuing when several drones buzz you.  You run inside and look out your front window.  There are dozens of DHS tanks rolling around and about 50 'roidgoons who speak no english getting ready to kick your door in.  You will be cool as a cucumber, right?

akak's picture

I will invite them in for tea.

TeamDepends's picture

You have passed the test, Grasshopper.  Well done!

StychoKiller's picture

This has gotta be the zaniest repartee I've ever seen on this site, and that's really saying something! :>D

de3de8's picture

Akak, tks for another good laugh.

TeamDepends's picture

It is Kimberly-Clark you seek.  Yes, they also make toilet paper.  We have been all in for years and it's a feeling of security that money can't buy.

Help Is Not Coming's picture

Actually Kimberly-Clark hasn't made anything in years. They sold off all of their paper mills several years ago and just contract out to those mills what they want produced. Seems that they took the attitude that the only thing that they needed to make was money.

TeamDepends's picture

The dividend checks keep coming so we ask no questions.

lolmao500's picture

All those stupid Krugmanites and Obamabots praising Bernanke for his ``glorious saving`` of their 401k will have a nasty surprise when reality hits.

TeamDepends's picture

"We need your 401k to keep moving foward but don't worry!  We will instead send you a check every month.  Until we don't".

shuckster's picture

Watch this video as Rothschild expresses his concern for the pensioners (401k holders) in late 2008

Anasteus's picture

And for all the rest, artificially suppressed and undervalued gold could be finally recognized as by far the best investment ever. Once it bursts one will be barely able to afford more than few ounces.

Bill D. Cat's picture

As God is my witness , I thought turkeys could fly .

HD's picture

Baby if you ever wondered - wondered whatever became of me...

Beam Me Up Scotty's picture

Turkeys can fly, and some day in the not too distant future, shit will fly too.

fxrxexexdxoxmx's picture

Bill D. Cat, I can still remember how much that made laugh the first time I saw it. About a year ago was flipping through the channels and landed on the channel showing that episode and ended up laughing so hard it hurt. Thanks for the laugh..

ebworthen's picture

The sharks are just waiting until enough retail 401K, IRA, and Pension money comes back in the water before the next bloodbath.

Ben gave them all the FED gravy (taxpayer flesh) necessary to ramp things up on low volume rotating in and out of sectors and names within sectors.

Just when the average retiree and retail investor think it's safe to go back in the water the next feeding frenzy will commence.

Tsar Pointless's picture

As a resident of the Pittsburgh area and a frequent frequenter of East Liberty, I think this is a horrid idea.

But, this being Pittsburgh, and Pittsburgh being in the FSofA, I am not surprised at all.

HD's picture

Well it makes sense - the stock market has never declined during massive QE...


"We've never had a decline in house prices on a nationwide basis."


kill switch's picture


I love to turn promissory notes to pay nothing into gold, ya know the FRN,,,these idiots are so fucked that they think I would save FRN'S in the form of stocks,,,IRA'S 401 KFUCKS.... And I do it with bank of America's line of credit, fucking extreme irony.... QE ME..



the kill switch

nmewn's picture

No bubble here.

JustObserving's picture

American Exceptionalism