IceCap Asset Management: "Bernanke's Bouncing Ball"

Tyler Durden's picture

Contrary to popular belief, Bozo wasn’t the first clown to drop the ball. That honour goes to 16th century jester William Sommers simply told one joke too many, and before he knew it, both his juggling balls and his head were hitting the floor at the same time. Today, we have the making of the biggest financial clown of all time. As head of the world’s most powerful institution, the US Federal Reserve, Ben Bernanke has lobbed one giant money ball into the global financial system. This ball continues to bounce along one market to the other, and so long as it doesn’t touch the ground everyone is happy. Yet, should this ball grow so large it cannot be supported, one simple slip will be unfortunate for everyone. To follow the interconnectedness of markets, just follow Bernanke’s bouncing ball.

 


 

Via IceCap Asset Management's Keith Dicker,

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A poor earnings season – stocks zoom higher. Bad US manufacturing reports – stocks leap higher. Deeper and broadening recessions in Europe – stocks skyrocket even higher if that’s possible. Talk about a honey badger market – today’s stock market really doesn’t care, about anything.

 

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Of course, we can only have two outcomes:

 

either the real economy (the one with real people, real jobs, and real income) also zooms upward,

 

or

 

the stock market zooms back to reality.

 

Which naturally raises the question – “who’s zooming who”?

 

To answer the question, look no further than the talking heads. Whereas a few short months ago, experts on the Cypriot banking system crawled out of the woodwork. Today we have the same experts talking about the accelerating recovery and the soon to come economic nirvana.

 

While “nirvana” sounds a little too easy for today’s money masters to master, the newest and most used term by anyone with 30 seconds of fame is “accelerating recovery”. Everywhere we read, watch and listen, these magical words dance through the air. Unsurprisingly, this newest and coolest term originated in America. But don‘t despair, pretty soon Europeans of all sorts will move along from chanting “the worst is over” and graduate to their very own “accelerating recovery”.

 

Now as most people rarely read beyond the headlines, or question whether anything in print or full of pixels is anything but true, it’s worthwhile to actually dig around for evidence of this accelerating economy.

To get a 'glimpse' into the real world, IceCap's Full Presentation is below:

 

IceCap Asset Management Limited Global Markets 2013.5