Investors "Wrapped In A Blanket Of Near-Universal Optimism"

Tyler Durden's picture

It's official - in addition to the S&P, complacency and optimism have just hit all time highs, as absolutely nothing can ever go wrong again thanks exclusively to the stream of central bank liquidity which is rising all sinking boats. Strategas explains:

  • Investors around the globe “left our team warmly wrapped in the blanket of near-universal optimism” during recent client visits in Europe, Asia, Latin America, say Strategas global asset allocation analysts Nicholas Bohnsack, Ryan Grabinski in note.
  • That optimism itself could be a risk
  • Investors do not see any “lurking macro squall,” they’re optimistic on near-term growth and equities generally; U.S. stocks are favored
  • Investor optimism driven by threshold for Fed tapering “higher and likely delayed relative to expectations"
  • China won’t have hard landing; Europe recovering; inflation moderating as oil falls

And so all is well. Indeed, why worry? Uncle Janet has your back now and forever. As for the equity bubble that everyone now admits is clear and present, who cares...

Source: Bloomberg

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Dollar Bill Hiccup's picture

Bubble = Full Transparency.

You know it's a bubble, you can see right through it, but you're looking at what's on the other side, not the bubble itself.

And then .... pop!

Same as it ever was, but this same is going to be a doozy.

King_of_simpletons's picture

This amazing bull market will continue for ever. The stock market is the only oasis left in this cesspool of an economy. I regret missing out all these years. Well, atleast I will ride it to DOW 36K.

Uncle Janet looks like Grandfather Janet.

prains's picture

PRO TIP: Extreme Ponzi Makeover Show



optimism is the cheesepoperi to attract the buyers into the bottom of the ponzi, so those at the top can sell out of the ponzi........buying in now is tantamount to sticking your head inside the microwave with a tinfoil DOW 36K hat on


don't feed the beast!

TeamDepends's picture

Ewww, gross!  Think of all the preversions happening inside that blanket.

Richard Chesler's picture

It's a straitjacket, not a blanket.

prains's picture

this time is different!


yes, when you get your face ripped off it'll stop just south of your nutsack

slaughterer's picture

This just in: President Obama wants to rename "The White House" "The President's House" because "the White House is racist, it implies a race of man, and we should look beyond that to it's true function, the house of the president and his or her family, after all, we are not calling it "The Black House" right now.."  The US government has gone full retard at this point.  

Vampyroteuthis infernalis's picture

U.S. President Dwayne Elizondo Mountain Dew Herbert Camacho rides again!!

Beam Me Up Scotty's picture

LoL. It's the White House because it's "white" Obama, not because white men are supposed to live there. Let's just change the word white to something else then too. And while we are at it let's outlaw the use of the letter K too.

Dollar Bill Hiccup's picture

Friend from Haiti was calling it the Black House as soon as dude moved in ... don't think he made it up.

monad's picture

He wants to rename the "White House" the "Master's house". Great idea.

XAU XAG's picture



More like fire blanket

lolmao500's picture

Maybe ZH should do a post about this...

Forbes: White House Predicted in 2010 That 93 Million Would Lose Their Health Plans Under ObamaCare

But but but... you can keep your plan if you like it! NOT!

NOTaREALmerican's picture

Re:  But but but...

Yeah, you're right.    Let's just move everybody on to the entitled OldFart's socialist medical plan an allow everybody to leach off the government like the OldFarts have been doing for 50+ years now.

When the OldFarts demand their Medicare be cut you can start bitching about the lazy young bastards wanting socialism.

Everybody loves the Big-Gov socialist scam they are living off of.

SheepDog-One's picture

Sure, people are all long as they get 'theirs', humans don't care about anything else.

Harbanger's picture

Selfishness is the root of all evil.

pragmatic hobo's picture

... and the market is efficient, everything is priced in and everyone has same access to every information and everyone makes only rational decisions, and price is always right ...

DoChenRollingBearing's picture

Well, maybe the world is full of optimistic investors, but I am not.

We are ATFH re stocks.  Careful.  Think about buying some gold!

Bearwagon's picture

No, don't think about it - just buy!  ;-)

Harbanger's picture

Buy what's low, sell what's high.  Buy pm's, sell stocks.  This is so easy a banker can do it.  Thank you Ben.

Pairadimes's picture

Sung to the tune of "I'm forever blowing bubbles..."

XAU XAG's picture



West Ham fan?

Bearwagon's picture

Someone should hit these investors head against a wall or something. Their brains clearly lack oxgen!

XAU XAG's picture



Cells more like!


or should that be SELLS! LOL

yogibear's picture

Endless Fed backstopping. The Fed's the only game in town for Wall Street and traders, so act accordingly.

SheepDog-One's picture

And this fake wooby blanket is all they've got to prop it up...and remember nothing sticks to a blanket better than shit. The shitnami is cresting.

NOTaREALmerican's picture

Huh,  you mean human pathological optimism is creating a bubble?  

I wonder what else is caused by human pathological optimism?

1)  War on the sand-people will eventually be won.
2)  My DNA bling will be above average and thrive in a hyper-competative environment.
3)  I'm an above-average investor.
4)  My imaginary-friend can kick your imaginary-friend's ass.

SheepDog-One's picture

Human 'normalcy bias', a recessive evolutionary tribal trait that is 1 on a list of many which in my opinion points to Homo Sapiens going extinct like the other previous hominids. 

JR's picture

This is optimism based on the destruction of middle class producers, savers and American resources. It is an investor’s sales con, dependent on Fed redistribution of wealth, more like whistling by the graveyard.

What the Fed can do to middle class producers, savers and American assets, it can do to “investors” worldwide. And will. It’s a con that everything is good. The minute there is a flash of danger it will be everybody for himself. And the Fed takes all.

As Sinclair says: “Cyprus is the blueprint.”

Annihilation of U.S. Dollar Coming-Jim Sinclair via Greg Hunter -

October 31, 2013

Renowned gold expert Jim Sinclair says financial calamity is just around the corner for America.  Sinclair contends,“We are facing the annihilation of currency.  We are facing the shift of America as the leading and most influential nation of the world to some form of banana republic. . . . If it wasn’t for food stamps, we would be facing long lines of people waiting for free food.”  For gold, everything hinges on the U.S. dollar, and Sinclair says, “I think the dollar gets hammered.  I believe we are headed for hyperinflation.”  One of the many black swans, according to Sinclair, is the possible abandonment of the U.S. dollar by Saudi Arabia.  If Saudi Arabia stopped selling oil only in U.S. dollars, what would that do to the buying power of the buck?  Sinclair says gasoline would be “$10 a gallon very soon, without a doubt.”

Sinclair predicts retirement funds and bank deposits are going to be taken by the government.  How much of your money could you lose?  Sinclair says, “In Cypress, it was a total of 83%. . . . Cypress is the blueprint, and it’s what we are going to experience here in the United States.”  Jim Sinclair, who has just accepted the position as Chairman of the Advisory Board for the establishment of the Singapore Gold Exchange, says, “The exchange will trade physical gold only and not future gold. . . . You have to make delivery.”  Meaning, there will be no naked short selling or manipulation of this new market.  Sinclair says, “This will emancipate gold from the paper price.”  How high will gold go?  Sinclair predicts, by 2016, “Gold will be $3,200 to $3,500 an ounce.”  By 2020, Sinclair predicts, “Emancipated gold will be $50,000 per ounce.”  

Video: Greg Hunter as he goes One-on-One with Jim Sinclair of

JR's picture

Thanks for the info charts-all financial collectors’ items. And for the summary: 

The Public Be Suckered, Magnitudes
          Latest ? To Be*  Change

Real      66.1      54      18% drop


Real      97.2      49      49% drop


Personal  5%        11%     Doubling


Debt/     0.93      0.56    40% drop


Debt/     1.0        0.6     40% drop
                    *From extra-
                     polated histories

Quinvarius's picture

The bankers are not allowed to be clever and outsmart everyone in stocks.

semperfi's picture

its not optimism - its the "if you want to fill your bucket you have to put it under the spigot" effect

adr's picture

Is the third time the charm for making people believe the world belongs here instead of somewhere below?

The growth to justify the lunatic valuations will never materialize, but as long as somebody is willing to pay more because they believe it will, stocks will go up.

If I price my product 1000x what it cost a year ago, nobody is going to buy it, yet if my product was a stock buyers would be pouring in.

Ms. Erable's picture

Who are these 'investors' of which they speak? All I see is a stack of computers and a bunch of guys trying to hit the jackpot on a series of rigged one-armed bandits.

lunaticfringe's picture

I do not know how anyone can even talk about this ridiculous market with a clear conscience. 

It is sick- while we are all drowning in a sea of debt. One day this will be looked back upon as one of the worst periods in American history. It can't happen soon enough for me.

spekulatn's picture

 "No Big Deal" said Fama.


moneybots's picture

"As for the equity bubble that everyone now admits is clear and present"


Greenspan says the market is not bubbly.