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What Stocks Say About The State Of The Global Economy, In Two Charts

Tyler Durden's picture




 

The following two charts cut right through the headline propaganda and show all there is to know about the state of the global economy.

The first is a chart of Global Cyclical stocks (Goldman ticker GSSBGCYC). The second shows Global Defensives (Goldman ticker GSSBGDEF). The resulting picture is worth 1000 Op-Eds welcoming you to yet another "global recovery."

Good luck to the US as the "decoupled source" of all global growth in the coming year.

 

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Sun, 11/09/2014 - 21:19 | 5430842 q99x2
q99x2's picture

It is the wordplay of Hamlet. Does that mean what it does?

Arrest those shysters.

Mon, 11/10/2014 - 10:01 | 5431949 Triggernometry
Triggernometry's picture

You know, one cannot spell swordplay without wordplay...

Sun, 11/09/2014 - 21:19 | 5430843 Lucifer618
Lucifer618's picture

Is that a buy?

Mon, 11/10/2014 - 03:53 | 5431563 CHX
CHX's picture

It was a buy.

Sun, 11/09/2014 - 21:49 | 5430936 ekm1
ekm1's picture

Question:

 

What is the difference between this

https://account.sonyentertainmentnetwork.com/pc/login.action

 

and this?

https://www.nyse.com/index

 

Answer:

None, nada, zilch, niente, nul.

Sun, 11/09/2014 - 22:24 | 5431034 AdvancingTime
AdvancingTime's picture

For Washington to fix all that is wrong with our economy would be like turning a battleship in a bathtub. Today I make no predictions and have few expectations because when  I awoke it was to a market where stock futures were soaring ever higher even as important economic numbers being released continue to come in below expectations. As the stock market continues to remain at historic highs please tell me what is so good? What is so much better?

As I see it the weight of carrying a large number of unemployed and people who have dropped out of the work force is wearing society down through attrition. The article below points out some of the glaring flaws in the argument that blue sky lies ahead as the stock market seems to indicate. As I look at a landscape of empty and under-leased buildings that once housed thriving businesses that provided Americans with good paying jobs I'm forced to ask, How are things getting better?

 http://brucewilds.blogspot.com/2014/10/tell-me-again-how-things-are-getting.html

Mon, 11/10/2014 - 00:30 | 5431341 cathrynm
cathrynm's picture

So we're saying stocks actually do have something to do with the economy? 

Mon, 11/10/2014 - 01:04 | 5431377 masteredge
masteredge's picture

this place has been overwhelminghly bearish for years and yet the market has generated some of the best returns in history. when will you fools give up

Mon, 11/10/2014 - 03:43 | 5431556 The9thDoctor
The9thDoctor's picture

+1 masteredge

Mon, 11/10/2014 - 05:43 | 5431633 indygo55
indygo55's picture

one day nine hours ago you didn't exist around here. You registered just to say that?

Mon, 11/10/2014 - 06:10 | 5431642 Global Observer
Global Observer's picture

when will you fools give up

When it finally collapses?

 

It appears many people do not believe the markets are rigged despite they themselves shouting from the rooftops that they are rigged. Or perhaps they cannot imagine how the markets could be rigged any further, make predictions that are proven wrong, then realise how there was room for little more rigging, assume no more room exists for rigging and make predictions again. This will continue until the predictions come true or until the people realise making predictions about rigged markets is silly. But as long as those making the predictions, even if silly, get paid for them, they won't stop making those predictions. They will stop only when their predictions come true and/or people stop payng them for more predictions.

Mon, 11/10/2014 - 06:52 | 5431661 hootowl
hootowl's picture

What makes you think that stock levitation is anything more than fiat disintegration?.....along with the manipulation of the bankster/broker criminal frauds and cyclical confiscations of real assets using their political power to legitimize their crimes.

Starve The Beast.  End The FED.

Tue, 11/11/2014 - 15:41 | 5437450 Ned Zeppelin
Ned Zeppelin's picture

Oops, another cockroach has escaped from the Goldman Hotel.  

Mon, 11/10/2014 - 01:46 | 5431435 hedgiex
hedgiex's picture

Global Cyclicals/Defensives, etc are tired labels to debt laden financialized economies. Still the same papers floating in the sea of liquidity that have lost proce discovery and disconnected with real economies.

 

Mon, 11/10/2014 - 02:10 | 5431468 polo007
polo007's picture

http://www.safehaven.com/article/35742/the-financial-repression-authority-with-chris-martenson

Dr. Chris Martenson Talks FINANCIAL REPRESSION in clear and simple language that we can all follow. A professional educator, he makes the complex easy to grasp. Elements of Financial Repression require this skill to make clear the stealth game governments are taking against its citizens in the name of preserving the financial stability of the state.

Financial Repression

"When governments get into too much debt there are only so many ways to get themselves out from under the debt." There is:

1. Austerity,

2. Default on the Debt or

3. Financial Repression

In reality, the third is the only politically viable solution. Financial Repression " the cornerstone involves taking a little from everybody and giving it to a couple of favored parties". To do this involves three basic elements:

1. Negative Real Interest Rates,

2. Ring Fencing via Regulatory Controls,

3. Elimination of warning signals such as gold appreciation.

Japan as an Example

Let's consider Japan as an example. The Yen is down 33% over the last year as a stated policy direction of the government's Financial Repression implementation. As a direct consequence, imports are higher therefore making consumption items like energy more expensive for the average person in Japan.

Real wages and savings for the middle class in Japan are falling. However, if you are a corporation like Toyota it is better for business. Chris argues that Financial Repression is nothing more than a transfer from the people to companies such as Toyota . The government effectively believes it knows better through central control and planning where the public's money will be most effectively utilized.

Central planning never worked in Russia and after more than 20 years the proof can once again be confirmed in Japan. This is the stealth game being played against the public, not only in Japan but by countries practicing policies of Financial Repression around the world.

The Coming Crisis

True wealth NEVER gets destroyed, it only gets transferred!"

Chris points out that wealth is never destroyed. but rather it is the claims on wealth which are destroyed during a crisis. "A profound currency accident is coming" according to Chris where he "would not be surprised to see the Yen be completely obliterated just like the the Zimbabwe dollar." His strong recommendations are:

1. Understand the problem,

2. To importantly, take action,

3. Be in Productive Assets,

4. Make sure your money is managed by those who understand the new reality and today's true risks.

Wealth can no longer be stored in paper currency or "paper" claims in a Fiat Currency System.

Price and Value are separating and people forget that price is what you pay, but value is what you get. We soon will see an event where it will be perceived that great wealth is again destroyed. However, what investors MUST fully comprehend is that wealth is not destroyed but rather only transferred.

True wealth is the land, the property, plant & equipment, productive enterprises, raw resources and the people who fashion it all. That is the real wealth. Everything else is nothing more than paper claims on the true wealth. These claims can be made worthless overnight but wealth never is.

http://www.youtube.com/watch?v=V0eSCECnqrw

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