This page has been archived and commenting is disabled.

The Mystery Grows: Goldman Finds That Virtually Everyone "Sold In May"

Tyler Durden's picture




 

The great mystery of the endlessly levitating market continues to confound everyone, even Goldman Sachs. Because while the market soared in May (and has continue to surge in June) contrary to the sell in May mantra, when peeking beneath the market's covers, Goldman has found that most investor groups did just as they are supposed to do for this time of the year: they sold!

From Goldman's David Kostin:

While many investors puzzle over the decline in 10-year US Treasury yields to 2.6% alongside the S&P 500 at an all-time high, recent data suggest they moved flows in the same direction. Mutual fund, futures, and ETF data show a shift away from stocks and towards bonds during the past month. Pension funds have also sold stocks and bought bonds in 1Q. Equity market performance supports a pro-risk stance offset by a muted return outlook given high current valuations.

 

US equity flows have weakened during the past month with outflows from US equity mutual funds totaling $10 billion since April 30. The outflows have been broad-based with all categories affected other than Equity Income funds. The preference for yield is also evident in continued strong flows into taxable bond funds as well as outperformance by stocks with high dividend yield. Small-cap funds have experienced the largest outflows consistent with Russell 2000 lagging the S&P 500 by 625 bp YTD (5.9% vs. -0.3%).

 

Flows are also weaker in relative terms as both bond and international equity funds continue to receive inflows. During the past five weeks $12 billion was withdrawn from ICI domestic equity mutual funds. Meanwhile, $7 billion moved into international equity and $11 billion flowed into taxable bond funds. Both hybrid and municipal bond funds also had inflows. Lipper fund flow data shows a similar but less pronounced trend with $8 billion of outflow from domestic funds in May of which $7 billion was small cap funds.

 

The combination of fund flows has pushed our Rotation Index to its lowest level since June of last year. Recent flows suggest a modest preference for equity allocation but less risk appetite than during the past year or compared with previous bull markets. The index estimates the risk appetite of retail investors based on the mix of their fund flows as compared with their base-line mutual fund allocation across money market, bond and equity funds. Margin balances in retail brokerage accounts have also eased from very high levels implying less retail risk tolerance.

 

Institutional investors have also reduced exposure to US equities. Net equity futures positions of Institutional and Levered Funds have declined to $68 bn at the end of May from $92 billion at the start of April (Exhibit 4). The shift has been caused by large growth in the net short exposure of levered funds. Net futures sentiment is below average but has rebounded from very low readings last month. Broad-based short ETF exposure also continues to rise across major indices.

 

Pension funds have also been selling stocks and buying bonds this year but the pace has outstripped our estimates. Yesterday’s release of the Federal Reserve Flow of Funds report showed pension funds sold $42 billion of equities during 1Q ($168 billion annualized). The outflow is already 7x our initial 2014 annual estimate of $25 billion. Public rather than private pension funds dominated the equity selling. Assets shifted to short-term bonds.

 

And yet:

Changes in positioning do not appear to be driven by event or growth risks and may instead reflect fatigue post strong valuation expansion. The options market does not suggest higher event risk as the VIX fell below 12 last week (5th percentile since 1990) and 1-month skew is at its average level over the past 10 years while realized volatility was just 8.2% in May. Low volatility may persist as the average VIX regime lasts more than 3 years.

What is the conclusion by the firm which has a 2014 year end target of 1900, and whose June 2015 S&P 500 price target of 1950 was just hit on Friday?

Performance at the stock level is consistent with high risk tolerance but high current valuation suggests limited upside. Firms with lower return on capital, high realized volatility, and weaker balance sheets have all outperformed peers by about 200 bp this year. However, stocks with high dividend yield are also outperforming as modest upside and low interest rates make dividend-paying stocks attractive from a total return perspective.

So what's going on? Simple: one massive, ongoing, relentless short squeeze:

 

Finally, as Zero Hedge revealed, everyone else may be selling (or shorting) stocks, but here is who is buying with zero considerations for cost or value:

Of course, since neither facts, nor news, nor events, nor anything matters in a centrally-planned market, just BTFATH.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 06/08/2014 - 09:42 | 4834011 LetThemEatRand
LetThemEatRand's picture

It is difficult to decide which is more irritating:  that Goldman pretends that it doesn't know what is going on, or that a lot of people still believe and listen to them.  

Sun, 06/08/2014 - 09:45 | 4834015 Aaronson.Jones....
Aaronson.Jones.Rutherford's picture

All trades need 2 sides, if people are prepared to listen to Golman et al then they deserve what they get; it's financial Darwinism so to speak. I find Goldman irritating, I find those that place any trust in them just plain silly.

Sun, 06/08/2014 - 09:53 | 4834033 knukles
knukles's picture

Reference the Fed's balance sheet "Other Assets" and Paul Craig Roberts web site article about EuroClear and Treasuries, put a line between two point (or three at the most) and you"gotchur azner"

Sun, 06/08/2014 - 10:09 | 4834050 LetThemEatRand
LetThemEatRand's picture

"America is a Great Big Lie. There is no truth in what we are told. The entire country, along with that part of the world under Washington’s thumb, is run for about six private interest groups. The rest of us are being fleeced."  -- Paul Craig Roberts, 6.6.14.  PCR is the most notable defector of the mainstream system I can name.  That he has the balls to come out and call the entire system a lie is astounding.   Anyone here who is not reading him regularly should start.   http://www.paulcraigroberts.org/pages/about-paul-craig-roberts/

Sun, 06/08/2014 - 10:24 | 4834072 The Internation...
The International Jew's picture

Listening to financial advice from zerohedge commenters is like watching that drunk guy superman dive off that bridge facefirst into the concrete pillar below.  Brilliance at its finest.

Sun, 06/08/2014 - 10:28 | 4834085 LetThemEatRand
LetThemEatRand's picture

So are you just a Goldman apologist, or something more?  I've read some of your posts of the last week or so since you joined ZH, and truth does not seem to be a passion of yours.

Sun, 06/08/2014 - 10:36 | 4834093 The Internation...
The International Jew's picture

Goldman fucks muppets, no one doubts this.  You really think those CLOs are worth anything?  You really think they are being packaged... correctly?  No one with a brain would.  Congradulations!!!  You beat out the average moron.  Now how much have you been actually paying attention to the crap you spew? 

Does every new opinion thats not yours still cause you to get your panties in a bunch?  Oh it does?!?  Well shit, once a muppet always a muppet, right?  Well damn if Goldman's so bad lets just counter every bet they have!  How's that been going for you?!  Oh thats right, you don't actually trade or pay attention to the shit you spew.  Once a muppet, always a...

Sun, 06/08/2014 - 10:41 | 4834098 LetThemEatRand
LetThemEatRand's picture

"Well damn if Goldman's so bad lets just counter every bet they have!"

Why would I want to bet against the house?  I stopped actively trading some time ago when I figured out that the casino is completely rigged, with Goldman playing a huge role via their proxy, the Fed.  Hard to compete with an institution that has an open credit line to bet against me (a credit line that I am supposed to pay back in taxes one day).    What opinion is it that you have, exactly?  So far, all I've read from you is attacks on ZH posters such as the one above.

Sun, 06/08/2014 - 10:48 | 4834104 The Internation...
The International Jew's picture

Dude no one on here posts shit positive about Goldman.  No one is going to.  Ever.  Everyone on here hates bankers.  Most would slip them the shiv if they had the chance.  No one here like Barry.  No one here likes the 80% jews at bilderburg figure.  No one here likes the bail out wallstreet and run up debt to fund research into what part of the penis is the most sensitive.  Yes I remember that story.

But for how long will you condemn everything said, just because it comes from the mouth of a negative source.

Please, stop letting the faucet dictate the taste of the water.

 

 

The same tactic gets used on the TV.  Tell the muppets the truth, from the only guy who looks, acts, and sounds like a crazy person.

They don't just use the good looking guy with nice teeth and big muscles, to spread the lie.

They use the tinfoil hat guy to spread the truth.  So please, for the love of all fuck, realize Goldman has to make good calls every now and then, ortherwise, they would be the easiest trade to kill. 

 

Don't ignore who the source is.  Pay close attention to that, and afford their message less power if you agree with them, and more power if you disagree. & remember, if you want to know who is a muppet, ask them to explain something.  & if they give you an opinion, ignore them.  If they give you an exact memory or experience - an example - listen to them.  They have no opinions, only facts.

 

Sun, 06/08/2014 - 10:48 | 4834111 LetThemEatRand
LetThemEatRand's picture

So basically your opinion is that everyone here hates bankers (presumably including you, though you don't come out and say it), but we should go along with what they say?  That would make you the ultimate muppet.  Don't worry, I'm sure they will give you advance notice when they decide to change the bet to short and/or lose control over their own casino.  

Sun, 06/08/2014 - 10:54 | 4834117 The Internation...
The International Jew's picture

I'd advise you to read that again.  The answer you are looking for is already there.

 

& no, but I'd expect them to telegraph it.  & that is why phys silver and LTC are my trip.  Cus they pop.  Of course that isn't all I choose to do.  I like to study, to see what else I can do.

Sun, 06/08/2014 - 10:57 | 4834122 LetThemEatRand
LetThemEatRand's picture

The answer I am seeing from you (in the part of the post you added while I was typing my response to your earlier, shorter version), is that "Goldman makes good calls" sometimes, and your advice seems to be to try to divine when they are lying and when they are telling the truth, and keep on trading.  My point stands that you are the biggest sucker at the table and/or just a shill. 

Sun, 06/08/2014 - 11:01 | 4834136 The Internation...
The International Jew's picture

LOL  How you devine that information is up to you.

But I'd stop paying attention to who says what, and start paying attention to how things work.

People lie, people are inconsistent, and people are generally shitty.  Especially when they disagree with you.

History is a good start to begin examining.  Maybe if you can't 'devine' what's going on, you should spend less time talking, and more time trying to figure out how things work, regardless of who is talking or spreading information. 

Sun, 06/08/2014 - 11:08 | 4834145 The Internation...
The International Jew's picture

here's 2 bones:

All those youtube channels that spew crap about the fed and gold and silver.  They are dumb.  They want views.  & the muppets that figure out just a little bit, give it to them.  Why are the people that still watch these channels, muppets?  b/c these channels, with exception to rawdawg and silvfut, HAVEN'T MADE A CORRECT CALL EVER.

Here's another bone.  If time = money, and time is happening to the economy now, then it should be improving, however slowly it is.

& that should actually cause you to see greater opportunities, and you should stop being so negative and start looking for them, and then helping others.  At the same time it should also cause great problems, b/c stagflation is a bitch like that.

Some learn, others don't.

Sun, 06/08/2014 - 11:21 | 4834175 GetZeeGold
GetZeeGold's picture

 

 

 

Look little fella.....the only reason the markets are at all time highs is because we are printing money and propping it up.

 

Do you really think that can go on forever?

Sun, 06/08/2014 - 11:30 | 4834187 The Internation...
The International Jew's picture

you couldn't have missed the point more.  try reading the words without assuming what will be said next... its more suspenseful that way.

Sun, 06/08/2014 - 11:36 | 4834197 kliguy38
kliguy38's picture

"start paying attention to how things work" heheheh.........I believe WE do know how thinks work shithead and YOU DO TOO.......so take your spew and swallow it .......we've heard douchebags like you for years here..and you're all a bunch fo disinfo slime

Sun, 06/08/2014 - 13:59 | 4834517 James_Cole
James_Cole's picture

Geez international, you need your own blog, clogging up so many threads. 

And I like bankers (i.e. people working in finance) depending on who. And definitely there are some folks on here who also work in finance, I'd bet they don't all hate themselves. 

GS has its own interests and anyone reading them obviously needs to take that into consideration. 

Sun, 06/08/2014 - 15:26 | 4834696 Aaaarghh
Aaaarghh's picture

Ignore the TRoLL...Dont feed the TrolL, hes only been here over 1 week.

Sun, 06/08/2014 - 17:44 | 4835028 Manthong
Manthong's picture

“All trades need 2 sides”

Not any more..

JPM, GS, Kevin, the bullion banks et al are the market.. buyers and sellers of the same thing at the same time..

That is why we are in the mess we are in.

Sun, 06/08/2014 - 19:32 | 4835285 economics9698
economics9698's picture

International, get rid of the tribe infested Federal Reserve and we will have a fair fight.  Until then shut the fuck up cockroach.

Sun, 06/08/2014 - 19:45 | 4835313 Calmyourself
Calmyourself's picture

Jsmes backing lter so surprised no really #surprised...

Sun, 06/08/2014 - 13:25 | 4834433 TheRideNeverEnds
TheRideNeverEnds's picture

yes, we are missing the only chart that matters.  S&P vs fed balance sheet.  

 

We are still slightly undervalued per the FED balance sheet but basically fully priced.

Sun, 06/08/2014 - 15:35 | 4834708 sessinpo
sessinpo's picture

The Internation...    Here's another bone.  If time = money, and time is happening to the economy now, then it should be improving, however slowly it is.

---

You might want to throw that bone out. Time can equal money. But it is the efficiency and productiveness, or how that time is spent that matters.

Just that fact that time is passing does not equate to improvement.

Sun, 06/08/2014 - 11:09 | 4834146 LetThemEatRand
LetThemEatRand's picture

Going back to my original post, to which your responses add nothing other than obtuse statements that seem to amount to nothing more than to say that everyone lies so get over it, I'll add an "/or" to the last bit:  "It is difficult to decide which is more irritating:  that Goldman pretends that it doesn't know what is going on, or that a lot of people still believe and/or listen to them."  You may have the last word and give us more thoughtful insight, such as "people lie."

Sun, 06/08/2014 - 11:11 | 4834155 The Internation...
The International Jew's picture

I'll leave this post here for 'DISCERNING' PEOPLE.

Read everything here, study it well.  Let the idiots stay idiots, and the smart rise.

Sun, 06/08/2014 - 14:05 | 4834527 fourZero
fourZero's picture

I have yet to see you make a salient point, just nonstop spewing of unsolicited, vague fatherly advice.

Sun, 06/08/2014 - 15:27 | 4834697 Aaaarghh
Aaaarghh's picture

INtERNaTiONaL TROLL

Sun, 06/08/2014 - 16:20 | 4834787 kliguy38
kliguy38's picture

yup...pure bullshit......a paid troll

Sun, 06/08/2014 - 16:41 | 4834835 NidStyles
NidStyles's picture

Oh don't worry, I think most of us know who the real idiot here is.

Sun, 06/08/2014 - 11:16 | 4834163 Okienomics
Okienomics's picture

I'm trying to divine what the hell the two of you are talking about.  Your lips are moving, but I can't hear anything.  (okay, your fingers are moving, but nothing meaningful seems to be coming out).  Alrighty, there, big blue eyeball, tell us something insightful and useful about how things work.  All I got here is blah blah blah.  Did I miss some deep subtle insight?

Sun, 06/08/2014 - 11:28 | 4834178 The Internation...
The International Jew's picture

sure. 

Read books by William Stuart for the history of the world.

There are some twitter users that actually post good trades. (carefully watch.  For instance that 'sellputs' guy and his partner, trade forprofit.  They have like 10000 + followers!  LOL.  & these guys post dogshit trades.  They told their followers to go long WTI at like 110 just b4 it plunged. (one of many shitty trades, like buy the dollar at 83-84).  I wouldn't listen to them.  I remember a time when Goldman or JPM made an excellent release about Natgas being too high, and people should short it, and for the next 30 days it fell).  The simple of the message:  Don't pay attention to what is being said, b/c of who is saying it.  Find methods to determine if what they are saying, makes sense, and actually panned out.

& even when you think someone is trustworthy, or untrustworthy, they may astonish you with some great insight.

I'd start with William Stuart, and then study austrian versus keynesian economics.  In great detail.

Later if you want to try trading, be discerning and study from those who have made the right calls.  & almsot no one else.

Sun, 06/08/2014 - 11:29 | 4834186 kliguy38
kliguy38's picture

thanks obee one kanobe..........I'll stay tuned for moar insight....meanwhile you play the paper casino.....

Sun, 06/08/2014 - 11:33 | 4834189 The Internation...
The International Jew's picture

it really is true though.  the elite will always run the world, b/c none of you are smart enough to see beyond your own nose.  & this punishment you are going through, is directly a result of your inability to understand the truth.

 

Later muppets.

Sun, 06/08/2014 - 11:40 | 4834206 kliguy38
kliguy38's picture

thanks douche and as long as patriots such as yourself exist then we'll always have need for firing squads....gl you morally malleable squid

Sun, 06/08/2014 - 11:49 | 4834228 The Internation...
The International Jew's picture

Then NSA, let it be noted, that THE POINT OF POWER, IS NOT POWER ITSELF, BUT RATHER CONTRARIAN AGAIN...  IT IS THE REDUCTIVE ELEMENT, AGAIN! 

THE POINT OF POWER IS THE REMOVAL OF POWER FROM THOSE INCAPABLE OF WIELDING IT.  /nowIsee

 

pizza time later bitchez

Sun, 06/08/2014 - 12:27 | 4834306 quintago
quintago's picture

Yeah, they sold to Goldman who probably knew ECB was going to go negative. Now the whole world is going to become NIRP fearing serfs and pile into the market.

Sun, 06/08/2014 - 13:52 | 4834503 mccvilb
mccvilb's picture

Okay, Teddy Kaczynski, who's the ZH punker who gave you access to a computer terminal? Or else someone at the Onion's pranking us. Nobody could be this stupid and be proud of it.

Sun, 06/08/2014 - 15:28 | 4834700 Aaaarghh
Aaaarghh's picture

Hey its no fair, International troll gets paid for the shit they post on here :(

Sun, 06/08/2014 - 16:47 | 4834855 NidStyles
NidStyles's picture

The idea that you are protected by playing their game is amusing. I used to be protected, until I opened my mouth. Now I'm watched instead. 

 

They will turn on you just as they have turned on me as well. You are not special, you are merely another mouth to feed to them.

Sun, 06/08/2014 - 17:28 | 4834973 Muscletonian
Muscletonian's picture

I have been on here for years, and I must say that you silly idiots not realizing what The Interrnation is saying are as doomed as all the other idiots out there.

 

I have a swedish passport, but for sure I understand more english than any of you pity assholes. Read what The Internation. says instead of arguing for nothing, a bunch of piss ants would do better.. Yeah, please say Im a troll now as Ive been here longer than any of you, fuck off and get a life that matters. The only  thing Ive seen (today) re The Internation..is that its firm standing in difficult matters (but I will more lean to his (I bet) rightness, than the opposite).

 

Best

 

Muscle

Sun, 06/08/2014 - 18:45 | 4835151 Tall Tom
Tall Tom's picture

Stealth account. He has been here for Three Years and has made FIVE POSTS...all dated TODAY.

 

http://www.zerohedge.com/search/user_comments?name=Muscletonian

Sun, 06/08/2014 - 18:57 | 4835191 fonzannoon
fonzannoon's picture

I up arrowd him for ending with "pizza time" because that was the perfect way for him to end it. I wasted 5 mins reading it thinking he was "special" and "pizza time" gave me the visual of him falling off his chair and runnng that windmill type run while his mom puts his pizza on the table next to his juice box.

Sun, 06/08/2014 - 17:27 | 4834974 Muscletonian
Muscletonian's picture

I have been on here for years, and I must say that you silly idiots not realizing what The Interrnation is saying are as doomed as all the other idiots out there.

 

I have a swedish passport, but for sure I understand more english than any of you pity assholes. Read what The Internation. says instead of arguing for nothing, a bunch of piss ants would do better.. Yeah, please say Im a troll now as Ive been here longer than any of you, fuck off and get a life that matters. The only  thing Ive seen (today) re The Internation..is that its firm standing in difficult matters (but I will more lean to his (I bet) rightness, than the opposite).

 

Best

 

Muscle

Sun, 06/08/2014 - 18:45 | 4835150 Tall Tom
Tall Tom's picture

Stealth account. He has been here for Three Years and has made FIVE POSTS...all dated TODAY.

 

http://www.zerohedge.com/search/user_comments?name=Muscletonian

Sun, 06/08/2014 - 18:29 | 4835117 Death and Gravity
Death and Gravity's picture

That douche behind the monitor really loves hearing himself blabber, doesn't he?

Sun, 06/08/2014 - 23:52 | 4836049 Superdude
Superdude's picture

I think I understand your point, take in all information, no matter the source and trade accordingly. That is good advice, in normal times, when logic is easy to follow. The reason why you are getting such a reaction from the community here is that this issue has been hashed out numerous times over the years, the end result of the debate you are engaging in is that there is no logic to follow. There are insiders, that have access to information not available to most that enable them to win, daily, as in every day. You may find some sort of pattern that works for you, but the end result is you're taking a chance because unless you get word from one of the big shots, you're system is not as foolproof as you believe it to be. That's a fact, many times the big players have gone against wisdom and what makes sense. There are some general patterns for sure, but in no way does that make the system easy to follow. As such, most people here take the long-view on wealth security and survival and hedge accordingly, moving into areas that have historically survived significant changes in societies.

Sun, 06/08/2014 - 15:39 | 4834714 sessinpo
sessinpo's picture

The Internation...   Later muppets.

----

Another muppets bites the dust. And another one's gone and aonther one's gone. Another muppet bites the dust.

See ya International.  Don't let the door hit you where the Lord split you.

Sun, 06/08/2014 - 16:24 | 4834794 alexcojones
alexcojones's picture

Dear Mr. International Jew,

   I hope I am not being anti-Semitic by addressing you by your "Chosen" name.  Here on ZH, I have realized most of us are being paid forward by the Content & Quality of our posts.  Not the Quantity.

Forget the Austrian vs Chicago debate and Go Learn something from the Master:

When you can snatch the pebbles, little grasshopper,  from MDB, then return to teach us the Highest Wisdom of Trolldom.

Mon, 06/09/2014 - 08:08 | 4836505 cocky roach
cocky roach's picture

Is it just me or has the quality of shills really gone down?
I guess the crisis really is affecting all markets...

 

The Internation, get lost dipshit. Your tricks don't work here.

Sun, 06/08/2014 - 11:36 | 4834183 El Vaquero
El Vaquero's picture

 

Goldman fucks muppets, no one doubts this.

Followed up with this:

Dude no one on here posts shit positive about Goldman.  No one is going to.  Ever.  Everyone on here hates bankers.  Most would slip them the shiv if they had the chance.  No one here like Barry.  No one here likes the 80% jews at bilderburg figure.  No one here likes the bail out wallstreet and run up debt to fund research into what part of the penis is the most sensitive.  Yes I remember that story.

But for how long will you condemn everything said, just because it comes from the mouth of a negative source.

Please, stop letting the faucet dictate the taste of the water.

We've seen too many stories where GS has stated something where they were outright wrong, but they still profited.  In other words, GS has a track record of lying.  It doesn't mean that they are here, but it is their MO, and most people here are going to assume that they have an agenda that involves profit, because that is how they have consistently acted in the past.  The facts that GS puts out are suspect. Tom Stopler.

 

You want investment advice from a ZHer?  Don't play their game.  It's a fraud.  If you insist on playing their game, gold is going to be suppressed, stocks are going to levitate and try to figure out what the Fed is actually doing (not what it says it is doing,) and play along.  You'll probably profit until the system outright breaks, then you'll get your face ripped off.  But in the mean time, expect to profit off of a fraudulent system.  Unless you are an insider, you cannot really know what they are going to do well enough to time the face ripping event properly. 

 

P.S  I could give a flying fuck which banker is a jew and which one is not.  They should be judged by their actions, and Jamie should be treated no different than Lloyd.

Sun, 06/08/2014 - 11:43 | 4834208 The Internation...
The International Jew's picture

Look kids, point is, all this crap continues on b/c you refuse to listen to a contrarian perspective.  Its why you lose money in the market, its why the sheeple never listen, its why the world is fucked up. 

 

So keep on getting mad at the only guy who has ever told your feeble minds the truth. 

I can see where this is clearly headed, and no, not even the ZHer will make it out.

Sun, 06/08/2014 - 11:45 | 4834219 El Vaquero
El Vaquero's picture

And you didn't even listen to what I said.  No amount of putting your entire post into bold will change that.

Sun, 06/08/2014 - 12:05 | 4834262 The Internation...
The International Jew's picture

Goldman doesn't run the whole game.  The game is collectively run by many large money hands, competing for the most part, against one another, and against retirment funds and the like.  This is, the market, the only casino market there is. 

If you play and lost, then you didn't clear out your own demons, or you didn't study enough, and bet wrecklessly.  & yes this game is designed to kill you.  All markets, forever and always, do this.  So stop pretending money doesn't work like it does.  Same thing happened in BTC as well, and same thing will happen in any market that will ever be. 

Try reading the articles of someone who knows what the fuck they are talking about, like martin sibleau, or armstrong.  Reading Zerohedge will give the you basics, and not much else.

Sun, 06/08/2014 - 12:13 | 4834276 El Vaquero
El Vaquero's picture

Nope.  You still didn't pay attention to what I said.  For somebody who claims that others should read contrarian viewpoints, you're sure as hell doing a piss poor job of it yourself.

Sun, 06/08/2014 - 12:19 | 4834282 The Internation...
The International Jew's picture

So anyways, brief summary.

read above again.  I didn't tell you to listen to everything Goldman said.  I simply told you, you have the power to discern what was real and not real, by ignoring the person saying it.  If goldman told you to not jump off a bridge you would, and tyler told you to do it, you would.  Its really simple, thats the only opoint i made and i am generally depressed with the idiocy i am met with, zhers will always be idiots.

Sun, 06/08/2014 - 12:21 | 4834291 El Vaquero
El Vaquero's picture

Um, no.  You may have had some small edit, but your post was up when I responded it.  So you're a fucking liar or a goddamned moron.  And you still didn't listen to what I said. 

EDIT:  You edited your post from one that said that I had responded to your post before you had finished making it. 

Sun, 06/08/2014 - 12:22 | 4834294 The Internation...
The International Jew's picture

look again, ill write it, you have small brain listen to message not source, byebye tny brain

Sun, 06/08/2014 - 12:24 | 4834301 El Vaquero
El Vaquero's picture

You are a disingenuous person.  Go read my first reply to you and re-read it until you understand what I am saying. 

Sun, 06/08/2014 - 14:47 | 4834612 shovelhead
shovelhead's picture

Don't bother...

Drive-by clown who trades from tweets.

That tells you all you need to know.

Sun, 06/08/2014 - 14:55 | 4834637 dracos_ghost
dracos_ghost's picture

+1. Twitter as a source of quality research and trading tips. Priceless. Ooops, wait a minute, Priceless.

Sun, 06/08/2014 - 15:42 | 4834724 sessinpo
sessinpo's picture

The Internation...    look again, ill write it, you have small brain listen to message not source, byebye tny brain

---

Get lost dude. You are just looking for attention.

Sun, 06/08/2014 - 14:50 | 4834617 blueEyedDevil
blueEyedDevil's picture

idiocy? you're claiming  can read tea leaves .  cut the bs

Sun, 06/08/2014 - 12:19 | 4834278 BrosephStiglitz
BrosephStiglitz's picture

Was going to say- if the institutional investors are getting out, this bubble has some way to go yet if they do a 180 and start to reverse their positions.  Armstrong had a decent blog post on this recently.

Having said that, the markets are misbehaving right now and I have absolutely no idea what the rules of the game is, so rather than either going short, or long I simply will not participate.  Is it a bad thing to do?  Maybe.  The opportunity cost of missing out might be a serious probablem.  Having said that, I don't like playing games I don't understand.  It's a very good way to get fleeced.

Edit: I mostly read ZH for the charts and current affairs articles though, incidentally.  If you stick to the facts, and disregard the assumptions about causality, you can often draw more valuable conclusions.  On Goldman:  they have a history of crying wolf.  The problem with repeatedly spreading bad information and profiting by taking the opposite position, means that people are less inclined to listen to your analysis.  Even if it is correct. 

I have friends who work for Goldman.  They are a very smart firm.  I don't trust their free research though.  If it was ultra-valuable analysis, it would be proprietary.

Sun, 06/08/2014 - 12:20 | 4834289 The Internation...
The International Jew's picture

it is.  I just think people that don't get it, and write the same shit about the markets, about calls, about money itself, should shut the fuck up and learn about it already.

Sun, 06/08/2014 - 13:01 | 4834375 UrbanMiner
UrbanMiner's picture

Play the market momentum inside the box while preparing for the shit storm of currency collapse - know the truth but don't bet on it in the markets. Check.

Make money off the rigged game, but don't believe the game is anything more than a game. Check.

Listen to the talking heads in so much as they may affect the sentiment within the game. Check.

Don't bet against the big money, you will lose. Check

Buy PM's because they are the real. Check.

Reality will eventually assert itself. Check.

Anything else??

 

Sun, 06/08/2014 - 14:13 | 4834550 g speed
g speed's picture

So what I get from you is buy low --sell high-I think with the caveat to only listen to those who know when to buy low and sell high --and if you don't know when they are giving you the secret sign that this time it is not a lie then we need to study more and look  more at the world and understand the markets and don't take a book for its cover and trade like you do to realize untold riches and power---OK got it.

Sun, 06/08/2014 - 17:49 | 4835039 Muscletonian
Muscletonian's picture

I agree with you The Int, fuck you all losers around.. Get a grip on reality instead, just bc u have the backing of The Cog mean you are even close to right.. Retarded monkeys do it better.. Troll society this has become, unfortunate as it used to be some values in the comments, today has been very cotrarian to that though..

Sun, 06/08/2014 - 18:48 | 4835156 Tall Tom
Tall Tom's picture

Stealth account. He has been here for Three Years and has made FIVE POSTS...all dated TODAY....on this thread.

 

http://www.zerohedge.com/search/user_comments?name=Muscletonian

Sun, 06/08/2014 - 14:44 | 4834607 blueEyedDevil
blueEyedDevil's picture

words of a complete egotist piss artist. You claim to know how things really work and ZH and the rest of

us don't have a clue. If that was true, you'd be so stinking rich that you would have 10 supermodels on you at some tropical paradise. You wouldn't be posting on ZH.  Clearly you're just another evil bankster looking to deceive.

Sun, 06/08/2014 - 17:55 | 4835044 Muscletonian
Muscletonian's picture

Blue Eyed Devil, are you even half retarded?? 10 supermodels?? If The Int would be a paid bankster on here, doing Mammons dirty work, you think he wouldnt have the cash?? Or is someone paying him to print his thoughts? Think its insightful to see the lousy reactions on for me fair valued comments.. Yeah, sure the ad hominem attacks might be a bit over the top on ya all, but I think youboth deserve and can take it..

Sun, 06/08/2014 - 18:49 | 4835162 Tall Tom
Tall Tom's picture

Stealth account. He has been here for Three Years and has made FIVE POSTS...all dated TODAY...on this thread

 

http://www.zerohedge.com/search/user_comments?name=Muscletonian

Sun, 06/08/2014 - 21:17 | 4835592 cornflakesdisease
cornflakesdisease's picture

I've talked to Mr. Armstrong on several occasions one on one and corresponded with him when he was in prison.  In my opinion he is a paid hack on par with Jeff Christian.  I have no respect for anything he writes or puts out.  His best days are gone.

Mon, 06/09/2014 - 06:44 | 4836425 BrosephStiglitz
BrosephStiglitz's picture

We'll see.  Notice:  I put forward information, state my opinion, and then let other people take note.  I do not like opening and closing positions based on second hand information.

I can tell one thing for certain; a lot of people are going to be out of pocket in this market when things start to slip.  It is going to be brutal, like cattle stampeding toward a wood chipper.  I personally won't open any positions unless I understand the game that is being played, that is for certain.

Sun, 06/08/2014 - 16:46 | 4834856 Blankenstein
Blankenstein's picture

 

"Look kids, point is, all this crap continues on b/c you refuse to listen to a contrarian perspective.  Its why you lose money in the market, its why the sheeple never listen, its why the world is fucked up. "

 

Sounds like someone trying to entice suckers to join his ponzi scheme that is about to collapse.

Sun, 06/08/2014 - 15:07 | 4834665 lakecity55
lakecity55's picture

Hey! Don't forget about the former (?) Goldmanstein figures who get placed in influential positions in other countries!

Mon, 06/09/2014 - 00:00 | 4836065 Superdude
Superdude's picture

You gave him a much better reply than I did, this is what I was trying to get at. It's late where I am at. Also, I really think knowledge about being self sufficient is the most valuble resource. A close second is being able to create and nuture relationships. I understand that with the internet it is easy to say things one might not say in person, but if it gets really messed up, I hope the ZH community conncets with others in their communities instead of being paranoid and hateful.

Sun, 06/08/2014 - 15:04 | 4834657 lakecity55
lakecity55's picture

You have a report on the Protocols due by Monday.

Sign off and get to work, Termite.

Sun, 06/08/2014 - 11:11 | 4834154 orangegeek
orangegeek's picture

fair enough.  so why are you here?

 

better yet, make like a horse's dick and hit the road.

Sun, 06/08/2014 - 14:54 | 4834632 Agstacker
Agstacker's picture

Why don't you do the world a favor and pull a superman dive off a bridge yourself?

Sun, 06/08/2014 - 15:08 | 4834652 lakecity55
lakecity55's picture

So, resign your posting account and go away, motherfucker.

We're waiting.

If I see any more posts by you, I will fart in your direction, Mr. 1 week.

Sun, 06/08/2014 - 10:29 | 4834084 holdbuysell
holdbuysell's picture

Indeed. Stockman's rants are up there as well.

http://davidstockmanscontracorner.com/

 

Sun, 06/08/2014 - 15:00 | 4834647 lakecity55
lakecity55's picture

I'd give him 1-0z of Au for 1 hour of his time.

Sun, 06/08/2014 - 15:17 | 4834673 Frilton Miedman
Frilton Miedman's picture

 

 

P.C.R.+++++++++++++++++++++++++++++++

+++++++++++++++++++++++++++++++++++

Stockman - meh

Sun, 06/08/2014 - 21:09 | 4835564 klockwerks
klockwerks's picture

Thanks for the link.

Sun, 06/08/2014 - 09:50 | 4834025 Cognitive Dissonance
Cognitive Dissonance's picture

The thing about professional liars is that they often wind up believing their own lies.

Sun, 06/08/2014 - 09:53 | 4834036 knukles
knukles's picture

Like psycho and sociopaths

Sun, 06/08/2014 - 10:59 | 4834131 Zoomorph
Zoomorph's picture

"If I mention psycho and sociopaths on the internet I'll sound smart to the other members who have watched Dexter and also know what a sociopath is!"

Sun, 06/08/2014 - 17:44 | 4835027 lotsoffun
lotsoffun's picture

and junkies.  and we've got plenty of sociopathic junkies running the entire country right now.  junkies don't stop.  and stoned junkie could watch his mother being sliced with knives and not feel a thing.

 

Sun, 06/08/2014 - 10:11 | 4834065 pakled
pakled's picture

Yeah. There are two kind of people in this world... people who believe their own bull****, and those who don't.

 

 

The former group is always the one to be most feared.

Sun, 06/08/2014 - 10:56 | 4834125 Zoomorph
Zoomorph's picture

Believe their own = your average idiot, and not believing their own = intelligent liars and manipulators. The two groups probably fear each other the most. Personally, I fear the stupid people as well.

Sun, 06/08/2014 - 12:49 | 4834350 scraping_by
scraping_by's picture

Oh? Most of the con men I've known ended up broke because they fell for a con. Believing in your pitch is part of every sales training course and seminar on offer.

That said, most money grabbers never get why they're despised by the people they live with and feast on. Willful blindness or social Darwinian ideology, don't know which.

Sun, 06/08/2014 - 12:58 | 4834366 Cognitive Dissonance
Cognitive Dissonance's picture

It's not a lie if you honestly believe it's the truth.

That is why you sell the sizzle and not the steak. We can all believe the sizzle will taste great.......even when what is sizzling is not steak, but simply pink slime. Just don't look in the frying pan and you can believe anything you want to believe.

Sun, 06/08/2014 - 14:08 | 4834534 pakled
pakled's picture

"You know, I know this steak doesn't exist. I know that when I put it in my mouth, the Matrix is telling my brain that it is juicy and delicious. After nine years, you know what I realize? Ignorance is bliss."

- Cypher

btw - I believe those who have been taken in by their own lies are [even more] dangerous because there is a [slight] chance that those who know they are lying may at some point acknowledge they have been BSing, if enough people point out they are not wearing any clothes. But those who drink their own koolaid often go to the grave never having had the awareness that recanting was even an option. There is NO reasoning with such people.

Sun, 06/08/2014 - 10:39 | 4834101 headhunt
headhunt's picture

that would be a psychopath with the violent aspect committed on their clients accounts

Sun, 06/08/2014 - 11:12 | 4834159 JR
JR's picture

“Almost as startling as the scale of the Bernanke program was its secrecy. No one—not even Congress—was told where or to whom the money went… No one knows or perhaps ever will know.” – Hunter Lewis, Where Keynes Went Wrong: And Why World Governments keep Creating Inflation, Bubbles, and Busts (2009) 

And the denial of any wrongdoing goes on… and on.

Larry Summers on "House of Debt"

by Bill McBride on 6/06/2014  

An interesting piece from Larry Summers in the Financial Times: Lawrence Summers on ‘House of Debt’ A short excerpt:

 

"Atif Mian and Amir Sufi’s House of Debt, despite some tough competition, looks likely to be the most important economics book of 2014; it could be the most important book to come out of the 2008 financial crisis and subsequent Great Recession. Its arguments deserve careful attention, and its publication provides an opportunity to reconsider policy choices made in 2009 and 2010 regarding mortgage debt.
...
"Mian and Sufi ... argue that, rather than failing banks, the key culprits in the financial crisis were overly indebted households. ... Mian and Sufi highlight how harsh leverage and debt can be – for example, when the price of a house purchased with a 10 per cent down payment goes down by 10 per cent, all of the owner’s equity is lost. They demonstrate powerfully that spending fell much more in parts of the country where house prices fell fastest and where the most mortgage debt was attached to homes. So their story of the crisis blames excessive mortgage lending, which first inflated bubbles in the housing market and then left households with unmanageable debt burdens. These burdens in turn led to spending reductions and created an adverse economic and financial spiral that ultimately led financial institutions to the brink."

Read more at
http://www.calculatedriskblog.com/#4DBfHWUJjrD1DEeA.99

Sun, 06/08/2014 - 12:44 | 4834340 scraping_by
scraping_by's picture

The 1% can buy all the noise they want.

The fall in retail and the subsequent business crash was from rising unemployment, and more importantly, the fear of rising unemployment. The slogan of an overleveraged middle class was a distraction from the trillions that disappreared in the derviatives markets. Which was froth in the first place, but it wasn't Joe Sixpack trading CDOs. They just reacted to the shock waves, and rightly so.

 

Sun, 06/08/2014 - 14:52 | 4834623 shovelhead
shovelhead's picture

Guess that explains why they were pumping 85 bil a month into banks...

Those darn homeowners.

Sun, 06/08/2014 - 17:43 | 4835025 Muscletonian
Muscletonian's picture

Did you really read what The Internation. stated?? I doubt it, and as Ive read you in the past you, are superior in writing to anyone/everyone Ive met. And I have met them all, but this discern you now are showing The Internation. is for me higly questionable...

Has this site become a trollbinding excercise magnifying the whos who of ZH.. I call the bluff, and COG wake up again please..

Or are you talking about yourself??

Sun, 06/08/2014 - 09:51 | 4834029 Xibalba
Xibalba's picture

Like the pit boss at the casino

Sun, 06/08/2014 - 09:51 | 4834030 Seize Mars
Seize Mars's picture

LetThemEatRand

You think everyone who works at Goldman is party to all the scams going on?

Do you know how many er..."projects" they have going on at one given time?

Sun, 06/08/2014 - 09:54 | 4834037 knukles
knukles's picture

Counsel's office.

Sun, 06/08/2014 - 10:23 | 4834077 Ban KKiller
Ban KKiller's picture

I watched these criminals file into work one day. They did not look like they enjoyed their work or they were hung over from their nightly debauchery. Anyway they appeared to be zombies covered in guilt.

Sun, 06/08/2014 - 14:03 | 4834524 Jack Burton
Jack Burton's picture

Rand, Goldman is part of the Government operation to run a complete propaganda campaign against the American people. Goldman press releases are designed to keep Americans in the dark and believing in the fake recovery, the manipulated markets and fake democracy. In no sense of the word are markets anything but manipulated and fraudulent skimming operations. The same in the EU zone and UK.  Sometimes I spend a little time with CNN in order to get a feel for what the elite rulers want us to think and believe. Obviously they have a strong economic propaganda operation going that would have us believe that the US is the light of freemarket competition and capitalism. Always pushing people to get into the markets and participate in the great free enterprise economy that America excels in. The lies, manipulation, fraud and skimming schemes are papered over and covered up under lies.

Goldman is as much a part of modern American government as the department of defense or interior. Media is a fully owned branch of government, reporting only what the Washington and Wall-Street elites deem fit for us to be told.

Sun, 06/08/2014 - 16:21 | 4834790 SAT 800
SAT 800's picture

Correct.

Sun, 06/08/2014 - 09:49 | 4834018 ghengis86
ghengis86's picture

K-Hen not included

Sun, 06/08/2014 - 09:49 | 4834020 Seasmoke
Seasmoke's picture

All exits have been closed. How are they ever going to be able to get out now ????

Sun, 06/08/2014 - 13:20 | 4834425 scraping_by
scraping_by's picture

Depends on which 'they' you mean. TBTF banks and friends of friends always have the Fed. And individuals who don't control their own portfolios.

Retail and pensions are stuck. Though there are always bottom-fishers who know about how much the market will fall.

Sun, 06/08/2014 - 09:49 | 4834021 fonzannoon
fonzannoon's picture

http://www.zerohedge.com/news/2014-01-12/great-buyback-surge-over-corpor...

what about that?

Either way it does not matter. imagine the lift we will get when the S&P blows through 2000 and all these firms and pensions come back in to chase.

Sun, 06/08/2014 - 12:39 | 4834330 scraping_by
scraping_by's picture

Buying at the top is the expected, usual behavior for outsider money. But what if they're like our great-grandparents who lived through 1929 and the Depression? None of the average wage-earners wanted anything to do with stocks. Unlike the 90's, when the old guys croaking doom were laughed at, the current generation has been through 2008. Once burned, forever shy?

Sun, 06/08/2014 - 17:34 | 4834999 WmMcK
WmMcK's picture

"great-grandparents who lived through 1929 and the Depression"

Damn, you make me feel old; my father's father immigrated from Europe (as an adult) a few years before that (in the early 1920's).  I guess we're even closer to everyone forgetting the lessons of that time than I thought.

Sun, 06/08/2014 - 09:52 | 4834031 Global Hunter
Global Hunter's picture

If I was CNBC anchor for a day I'd like the chance to say "We are off the lows of the day on upwards selling pressure, parking even more cash on the sidelines".

Sun, 06/08/2014 - 09:55 | 4834039 knukles
knukles's picture

Steve Liesman would say that's an excellent insight

Sun, 06/08/2014 - 10:03 | 4834052 Global Hunter
Global Hunter's picture

we could nod in agreement, "the free market is working the way its supposed to Steve" ("the market is working the way its supposed to" was a line the owner of a brokerage I worked for said a lot between 2007-2009 to clients when they were getting alarmed, he said it with the same soothing tone a father would speak to his 4 year old daughter after she woke up crying from a nightmare.  Very happy to never see that lying douchebag again, he looked a bit like Steve Liesman come to think of it.)

Sun, 06/08/2014 - 10:06 | 4834056 flacon
flacon's picture

One has to wonder if Steve chose his last name or did his mother have a vision of him telling LIES when he grew up?

Sun, 06/08/2014 - 09:57 | 4834045 phoolish
phoolish's picture

As long as Yellin is buying, there's only one direction to go.

Sun, 06/08/2014 - 13:23 | 4834431 scraping_by
scraping_by's picture

If you know when she's going to stop. The ideal is getting out just before the money hose is strangled.

If you haven't got that kind of information, you're going to be in the boat when it sinks.

Sun, 06/08/2014 - 09:59 | 4834047 fonzannoon
fonzannoon's picture

The PE on the hamptons coke and hooker index looks farily valued right now. we all need to take the summer off. The best move right now is to get more conservative and sell the 3x SPY etf and just coast with SPY until Sept when we get the 2% pullback and then buy the 7x SPY etf for the EOY rally.

Sun, 06/08/2014 - 10:10 | 4834063 Squid Viscous
Squid Viscous's picture

lol - and don't forget to ride the Vix down to <5 with SVXY - easy money

Sun, 06/08/2014 - 10:18 | 4834069 Ban KKiller
Ban KKiller's picture

LSMFT ASAP, also, don't forget. 

Sun, 06/08/2014 - 10:13 | 4834067 carlnpa
carlnpa's picture

Really there is a simple explanation for the discrepancy.

The Economic Stabilization Act of 1942.  Everything economic, including specific company accounting statements, may be "adjusted" if it serves the interest of the government.  

My best guess is that the markets don't actually exist anymore, just as truth in our government has also ceased to exist.

Sun, 06/08/2014 - 14:20 | 4834560 g speed
g speed's picture

tu =+1000

Sun, 06/08/2014 - 10:25 | 4834081 Ban KKiller
Ban KKiller's picture

There is NO rhyme or reason in a fascist oligarchy "free" market. Only time of treason...

Sun, 06/08/2014 - 10:36 | 4834092 JR
JR's picture

Want to know what the bankers have in mind for us: Detroit. That’s why there is no longer even a manipulated stock market; it's merely a manufactured market.

As Americans’ wealth in their homes, their savings, their retirement accounts, their gold, their educations… continues to be plundered and shifted to the Fed’s balance sheet, the tyrants behind the American Empire increase their aggression against any faction that would try to resist the expansion of a world under debt (eastern Ukraine).

Here’s the “peace” offered to those who would resist the Empire’s puppets :

“SLAVIANSK/LUHANSK Ukraine (Reuters) - Pro-Russian separatists poured scorn on peace overtures from Ukraine's new president Petro Poroshenko on Saturday as fighting rumbled on in the east of the country.

“Taking the oath of office in Kiev, Poroshenko appealed to the rebels to lay down their arms, offering peaceful dialogue and immunity from prosecution to ‘those who don't have blood on their hands’.

“But rebel spokesmen in the self-styled Donetsk People's Republic, which has declared independence from Ukraine and wants to unite with neighboring Russia, told Reuters the fight would continue.

"’What they really want is one-sided disarmament and for us to surrender. That will never happen,’ said a top separatist official, Fyodor Berezin. ‘As long as Ukrainian troops are on our soil, I can see that all Poroshenko wants is subjugation,’ he said by telephone from Donetsk.

“In his speech, Poroshenko said the government was prepared to talk to peaceful citizens – ‘clearly not with gunmen and other scoundrels’ - and would offer a safe corridor for fighters who had crossed the border from Russia to go home.

“But his appeal appeared to fall on deaf ears….”

Meanwhile ::

“While the government tightens its grip around Slaviansk, now encircled by the army, it appears to be losing ground in its easternmost region of Luhansk, where border guards have fled several bases after coming under attack….

“Separatist leader Valery Bolotov, governor of the self-proclaimed "Luhansk People's Republic", was emphatic in his rejection of Poroshenko and Ukrainian rule:

"’The Ukrainians have made their choice and they must live with it. As for our republic, we have no diplomatic relations with Ukraine,’" …

http://fredw-catharsisours.blogspot.com/2014/06/ukraine-updates-june-8-2014-eu-ukraine.html

Sun, 06/08/2014 - 15:06 | 4834664 shovelhead
shovelhead's picture

My Ukrainians isn't very good but I think I heard a distinct "Suck my balls" directed at Poroschenko.

It appears no one is taking candy from strangers.

Sun, 06/08/2014 - 10:36 | 4834094 kellycriterion
kellycriterion's picture

Gee it's almost as if the sharp side is converting Fed money spigot into cash in their pockets. As opposed to ya know the usual bag holder suspects.

Sun, 06/08/2014 - 11:21 | 4834119 AccreditedEYE
AccreditedEYE's picture

Retail, despite what CNBS say or sentiment clowns, retail is not only fully committed to stocks but are buying more. Know two guys who ply the retail trade and these people not only have the same allocation to stocks they had in 2007-8, but they are also buying even more. Only thing they learned over the past decade is that "the market always comes back". Risk avoidance? Please.

Also, I trust The Squid less than being in a cage with month-starved lion. Their research desk has some other report that says the exact opposite to this and it's only for a different audience. Don't buy this shit.

Sun, 06/08/2014 - 10:56 | 4834127 gdpetti
gdpetti's picture

Isn't this the same pattern from the 90s? the 'smart money' would exit in March, yet the markets would continue to rise into May? Then fall through thru the summer vacation months.

Sun, 06/08/2014 - 13:12 | 4834403 scraping_by
scraping_by's picture

Except for April 2009, when stocks began their rise to new records. The difference between people money and printed money.

Sun, 06/08/2014 - 11:09 | 4834150 Pairadimes
Pairadimes's picture

Let me post an executive summary for anyone who does not feel like reading the whole article:

"Oh shit! We broke the fucking market!" - Goldman et al

Sun, 06/08/2014 - 11:16 | 4834164 OC Sure
OC Sure's picture

 "...but here is who is buying with zero considerations for cost or value:..."

Don't forget to identify precisely where the currency is coming from to fuel the buybacks. Is it money or is it counterfeit?

Sun, 06/08/2014 - 13:10 | 4834396 scraping_by
scraping_by's picture

It's accounting. By pushing obligations into the future and recognizing future income as revenue, there's a lot of cash that can be declared surplus to needs and used for buybacks. And, too, you're correct that any big concern can borrow almost unlimited amounts at nearly zero interest using company assets as collateral. Those of us outside the executive suites might see that looks a lot like looting, but we're outsiders. The MOTU are different than you or me.

Sun, 06/08/2014 - 12:03 | 4834258 AdvancingTime
AdvancingTime's picture

A baffling conundrum! What do stock markets around the world have in common with "girls gone wild" the video of college girls on spring break? The answer is both are crazy out of control. We have grown very complacent as money around the world has continued to flow into intangibles and promises. Currently the market is all a twitter and locked in a "greed and stupidity loop."

The loop can be explained as follows, stocks are rising so why get out, not getting out is causing the stocks to rise. When stocks do pullback it is a buying opportunity. Yes, we are indeed experiencing a double down and let it ride mentality. I don't have to explain the greed part. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/06/stock-markets-and-girls-gone-wild...

 

Sun, 06/08/2014 - 14:50 | 4834618 OC Sure
OC Sure's picture

What do you mean by "money?"

"The lexicon of economics has gone from language that attempts to identify, simplify, develop, and explain actionable solutions to resolve the problems of meeting the demands of living to obfuscating, complicating, circumventing, and confusing everyone who attempts to make any sense of it all for the sole purpose of hiding the blatant fact that the alliance of global banking systems are counterfeiting. They are not producing wealth. They are stealing it, along with whomever receives the counterfeit first and then exchanges it for money; this is a win-lose situation. The tyranny of modern economics sloganeers its jargon to stupefy and to busy giddy minds in order to distract them from discovering what is money and what is counterfeit. The daily, weekly, monthly, and quarterly fixations on the latest authoritative statistics all work to fuel The Great Lie and leave the obsequious passengers, with their saturated cerebrums, all gazing at totem poles. While they gaze they are getting bumped from miles away as the laws that are supposed to protect them from thieves instead ensures that they are the thieves' next victim. After all, it is because of modern economics that counterfeiting counterfeit is unlawful but counterfeiting money is not."

http://ocsure.blogspot.com/2014/06/tyranny-of-modern-economics.html

 

Sun, 06/08/2014 - 12:21 | 4834292 RevRex
RevRex's picture

ummmm, they fixed the market under Bush too to make him look better......uh huh..."both parties are the same", right LiberTARDians?

 

Remember all of the stories and actual evidence about fudged economic numbers under Bush? I don't either!

 

WHY does the Socialist Semite democrat media treat both parties so differently IF they are both the same?

 

You know, I have been down arrowed over 500 times on this topic, by a bunch of cowards who have no answer for the questions....

 

Just keep repeating your idiotic democrat drivel.........

 

 

That's what people who repeat Socialist Semite democrat media propaganda do I guiess....

Sun, 06/08/2014 - 12:33 | 4834325 scraping_by
scraping_by's picture

WHY does the Socialist Semite democrat media treat both parties so differently IF they are both the same?

 

The corporate oligarch media treats them differently becuase they're the same. It's called a false choice. Part of selling the lie.

You just like the Talking Tough party. Makes your ignorant snarling seem greater than it is. And Palin has a lot better rack than any DINO femme, so there's that.

Sun, 06/08/2014 - 18:33 | 4835121 Tall Tom
Tall Tom's picture

RevRex post is bait. He is a troll. He is way off topic. The best way to deal with him is by ignoring him.

 

(That is why he receives downarrows...off topic posts. He is turning into a fonestar with his BTC Hijacks.)

Sun, 06/08/2014 - 12:42 | 4834335 vote_libertaria...
vote_libertarian_party's picture

What would be interesting research is split out the levels of companies by stock buybacks:

 

0% buybacks of outstanding shares

1-3%

4-7%

7_10%

 

And see how each group performed.  If the highest announced buyback group has the biggest price rise that would confirm that last chart statement.  If they are all near equal then the hunt goes on.

Sun, 06/08/2014 - 13:04 | 4834387 scraping_by
scraping_by's picture

But you'd have to further subtract the amount of insider selling, since a lot of stock buybacks are just bonuses for the already overpaid 'C' level executive class. They don't hold for long, preferring cash for their absolutely vital consumer purchases and speculations. An indirect looting of company assets, but effective nonetheless.

Sun, 06/08/2014 - 12:52 | 4834355 q99x2
q99x2's picture

Musta had the FED software connected to the press eh?

Told you.

Sun, 06/08/2014 - 13:11 | 4834398 EHM
EHM's picture

Buyer of last resort.

Sun, 06/08/2014 - 13:45 | 4834480 RabbitOne
RabbitOne's picture

As someone pointed out “Isn't this the same pattern from the 90s? the 'smart money' would exit in March, yet the markets would continue to rise into May? Then fall through thru the summer vacation months.

 From 40 years of watching this circus there were other factors than just smart money driving the markets.  There was the April buying spree from people putting their tax returns back into the market. The second quarter market push up if first quarter had solid earnings. When spring auto, retail and housing had positive sales reports as warm weather hit the stocks jumped up. But the big downer was always institutions sold as summer approached so fund managers and their families could sit at the beach.

What I see is continued stock buy backs by CEO’s to drive their stocks and the market higher until their second quarter results are in. This way these CEOs can pocket huge bonuses for the first half of the year regardless of how the second half of the year goes. It is important for them to collect big bonuses now before election year politics (because the second half of the year may go south).       

Sun, 06/08/2014 - 13:44 | 4834484 HUGE_Gamma
HUGE_Gamma's picture

makes sense that they all come back this week after missing out the breakout from 1900.. gotta be there for 2000

Sun, 06/08/2014 - 13:51 | 4834500 slaughterer
slaughterer's picture

Actually, Goldman has a "black swan" event planned for next week.  Watch and see.  

Sun, 06/08/2014 - 14:18 | 4834555 HUGE_Gamma
HUGE_Gamma's picture

thats the only thing that can turn this right now.. there is no reason to sell and every pullback will be bought on a lack of news..

Sun, 06/08/2014 - 14:03 | 4834520 JR
JR's picture

ZH blogger, The Internation, shows himself to be a troll, of course, attempting to legitmize Goldman Sachs as a significant market source, rather than identifying Goldman's motive to take your investment and, ultimately, make it theirs. But more than that, it brings up a point that we all should remember: A private business has the key to the U.S. Treasury. It has veto power over every U.S. government official, elected or unelected (and that includes members of Congress).

This business owns the currency with the power to dictate what it’s worth, who gets it free and who doesn’t -- in secret. This business is the money trust cartel. And at the moment the most obvious member is Goldman Sachs. GS actually has the commanding leverage on any foreign or domestic program it chooses to fund or defund through the NY Fed Bank. For the Federal Reserve System, and this is outlined clearly in public documents, is controlled by the owners of the NY Federal Reserve Bank.

When will all Americans finally realize that they are under control of a powerful international cartel which has stolen not only their assets and much of their livelihood but their culture and sovereignty as well? There’s no better proof that the control of the United States government has slipped from the hands of Americans to the internationalists now centered in London, New York and Israel than the move to install former head of the central bank of Israel, Stanley Fischer, as the shadow head of the Fed.

These are the fundamentals. Goldman is the voice of your enemy. Invest and assess its advice accordingly.

Sun, 06/08/2014 - 15:12 | 4834671 lakecity55
lakecity55's picture

I did not know what you meant until I read further down.

I think his name should be The International Termite.

Sun, 06/08/2014 - 21:23 | 4835617 cornflakesdisease
cornflakesdisease's picture

It is equally interesting that Goldman came to the forefront of being an unknown to being in the heart of things right about 1964 after the assasination of JFK.

Mon, 06/09/2014 - 16:56 | 4838506 hootowl
hootowl's picture

"Follow the money/moneycreation/Protocols" and you will find the answer to every mystery, social/cultural devolution problem, and fount of all the parmawars of the past 100+ years, including the assassination of JFK, the attack of 9/11, and the installation of Barry Soetoro/aka Barack Ovomit as putative POTUS.

Sun, 06/08/2014 - 14:19 | 4834557 Peter Pan
Peter Pan's picture

We are wasting our time trying to secong guess the market because there IS no market.

It seems that money can be made in the stock market because it is the one place where reality can be twisted quite effectively and secretly by whoever is pulling the strings.

But there comes a time when all strings snap.

Do NOT follow this link or you will be banned from the site!