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The Bipolar Stock Market (In 3 Simple Charts)
Just as the BIS has grown concerned at "the markets' buoyancy hinges on central banks' every word and deed.," the following two charts show, perhaps more worryingly and more clearly that any others just how bipolar (and short-fuse schizophrenic) the world's equity markets have become...
Sentiment has been totally crazy.. swinging from utterly dysphoric to complacently euphoric and back to 'brink of suicide'-like extremes on the words of a few PhDs around the world...
But one thing is clear - actions speak louder than words... Spot The Not-Currently-Printing-Money nation's stock market...
It appears the battle between 'fundamentals' and 'money-printing' is starting to be lost...
But, don;t tell anyone... Because when even the BIS tells you to keep your mouth shut, as it just did very publicly...
...a more sobering interpretation is also possible. To my mind, these events underline the fragility - dare I say growing fragility? - hidden beneath the markets' buoyancy.Small pieces of news can generate outsize effects. This, in turn, can amplify mood swings. And it would be imprudent to ignore that markets did not fully stabilise by themselves. Once again, on the heels of the turbulence, major central banks made soothing statements, suggesting that they might delay normalisation in light of evolving macroeconomic conditions.Recent events, if anything, have highlighted once more the degree to which markets are relying on central banks: the markets' buoyancy hinges on central banks' every word and deed.
... you keep your mouth shut.
Charts: Bloomberg
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market?
Independent?
That's not Bipolar. That's clearly ADHD.
More Speed baby!
GDP? Who needs GDP when central banks give free money to the financial markets!?!?
This his has an ugly end run, but it is an old game - selling the future for the present.
The 'future' yesterday is now today, the present.
I was diagnosed as having bipolar tendencies back in 2007, so I understand this because I've lived it since then. I figure since I've been living this way for the last 8 years I'm a lot more comfortable with it than most people. It's just a way of life now.
Phuckit. Everybody gets excited about shit? They are just getting to the level I experience everyday 24 hours a day. Shit. I'm used to it. It don't mean nuthin' to me. All you people gettin' excited over some shit? It ain't nuthin'. The sun comes up tomorrow just like it does every damn day.
Something happens? You will live. You will have to live, or you get depressed and will shoot yourself in the head or some dumb shit. Why worry about it one way or another? After all, you have only got one life to live.
I too am BiPolar (2) and take meds that keep me calm ie around 5/6 on scale of 10. My doc is great and the wife monitors me. Yep, I do get high sometimes but recognise it now, although I didn't when I was younger. Age (70) moderates the effects I am told. Anyway, it really is so good to have that feeling of total empowerment when anything is possible.
This is when it becomes dangerous to play the markets - stay away until I am calm again and thinking clearly. I am some such now, just waiting for my broker to call about an ETF on the DOW which I want to short as I feel the time is right.
Sorry to be off topic today, must be getting a bit high! At least we don't need drugs to send us up!
Go well fellow traveller
My stand since I started learning about economics in the '90s is that it has always been bullshit and men like those lampooned in Trading Places are the only ones that make money in the long run. People get suckered in by the lure of the schnoz, to make a fortune without working for it, and end up with nothing. The real economy exists at the mouth of the bubble and never gets any larger. The mass of the economy remains the same, yet the appearance of it grows ever larger. The simple act of blowing, credit, appears to make the economy larger than it really is. People are in awe of the size of the bubble blown. Something in them knows it is unsustainable, but they actually want to see it pop. It's thrilling to see all that energy explode. Leverage is building a massive structure on a cracked foundation. Perhaps people think somehow the building will actually stand this time. It never does. There is no such thing as a bull case or bear case. There is only fantasy and reality.
Nothing over the past 20 years has shown me anything different.
I've lately seen several high end Autos that bear vanity plates like this one:
THX AAPL
HI 10 PNRA
GO TASR
Some have already done very very well, and I'd venture a guess that in wealthier cities the purchases with stock profits are even greater.
Embedded in an attitude that nothing changes is a matter of U being blind, or biased. Or very very short.
....it's ok, these are the signs of the 'wreckovery'.....you just go ahead and buy more stahks!!
whys is march 2015 differant than same period 1 2 3 4 5 years ago. same story's now as then. Someday it will implode, I fear not any time soon.
Software?
equity? debt!
Bipolar??? I think this is a normal market reaction and a smart move to buy equities. Mark Faber even suggested buying US equities. Even with a market drop of 90% you are still better off with 10% of something (equities) rather than 100% of nothing(Fiat) and holding gold may become illegal like in the 1930's.