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Happy 27th Anniversary Black Monday
"It could never happen again... right?"
And if you think this time is different - just take a look at the 'tricks' they used 27 years ago to stop the fall - A Fed statement and borken/halted exchanges...
Charts: Bloomberg and Yahoo
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Bonus Clip - as we noted previously,
"This is a market that has been seriously overvalued for some time," exclaims Paul Tudor Jones,"and what we are seeing today is the piercing of the bubble..." adding that "Wall Street was uniformly unprepared for this kind of a drop."
Of course Bill Griffeth asks should we buy this dip... Tudor Jones replies - so ironically -
"we should see massive Federal Reserve and Government intervention in the FX and debt markets to stem what has unquestionably been a panic."
But Tudor-Jones cautions:
"prudent investors should use any rally to scale back into short-term Treasuries."
The legendary trader goes on to explain he is trading fear as investors fear deflation and disinflation and warns
"every American needs to get their house in order, needs to be conservative in their investments, the next few years will be about capital preservation."
Wise words for record highs...
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Damn cat lovers. And toy dog lovers.
Mindless cattle, the entire lot.
https://www.youtube.com/watch?v=iaYAlxLFag4
I am entirely convinced an inflection point is close at hand, in which the only one left in the market will be the Fed and a few fools.
QE can't prop the market forever. The simple sequence is that massive monetary expansion leads to dollar abandonment, which leads to inflationary forces when those reserve dollars come home to roost. At that point, it won't matter what the Fed does, as they will no longer have great influence on the economy, the currency, the rate of inflation, or anything else; they will be a failed institution.
The biggest credit (debt) bubble in history is about to burst. 1987 will look like a walk in the park by comparison...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
What investors avoided the crash (and by implication the 1929's crash)? Those that followed the Dow Theory:
http://www.dowtheoryinvestment.com/2012/10/special-dow-theory-issue-revi...
Seems like only yesterday; I was standing in the middle of the SP pit when it happened. I'll be writing on that in the coming week. Could it happen again? Nahhhhhhhh, President Goebbels and the Plunge Protection Team will make sure there is no "meltdown" prior to the 11/4 midterm election. After all, everything is 100% politics, every time, all the time, about everything. Rewrite history, change the focus, blame others; "hey, we've always been at war with Eurasia".
www.traderzoo.mobi