RBS: "This Is Simply The Worst Week We Had In Recent History... After Too Much Policy Kool-aid"

Tyler Durden's picture




 

This week is simply the worst we had in recent history for markets, RBS exclaims, the worst ever start to the year for The Dow, the worst since 1999 for S&P and the second-worst for credit since 2008. Worst still is, they think there’s more weakness ahead and that many fundamental risks will continue to haunt markets. Why? Simple! Investors drank too much policy kool-aid last year.

Worst ever start to a year...

 

 

And worst week for equity and credit markets in recent history...

 

In Europe, it was ECB QE2; in China, it was the October plenum and a long list of reforms; in the US it was the Fed saying the US economy is strong enough to withstand hikes.

But the reality is that policymakers have increasingly less dry powder to use.

Source: RBS

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Fri, 01/08/2016 - 08:23 | 7016243 I AM SULLY
Fri, 01/08/2016 - 08:32 | 7016278 mtl4
mtl4's picture

You just watch, I'll bet this ends up a massive headfake to the downside in the US only to rebound higher as money from elsewhere looks for a nice rock to park under.

Fri, 01/08/2016 - 08:34 | 7016285 CheapBastard
CheapBastard's picture

Robust!

Fri, 01/08/2016 - 08:38 | 7016302 VinceFostersGhost
VinceFostersGhost's picture

 

 

Our biggest enemies......global warming.....and guns.

 

Take care of that.....and this economy will fly!

Fri, 01/08/2016 - 08:39 | 7016311 SoilMyselfRotten
SoilMyselfRotten's picture

We pulled sales forward on a few folks

Fri, 01/08/2016 - 08:58 | 7016381 potemcam
potemcam's picture

And terrorists. We need to start making America great again and stop letting these terrorists into our country. You know, the white ones that took over those government offices in Oregon. We need to figure out what's going on!

Fri, 01/08/2016 - 11:12 | 7017203 bamawatson
bamawatson's picture

i realize you speak in jest sir. so, i take the liberty of pointing out an error in your comment. the media does an excellent job of distorting, obfuscating, misdirecting. the men in oregon have 'taken' a freaking shack out in the midlle of nowhere. yes, it is (according to some questionable legal interpretations) 'governement owned'; but it is Not an office building. it is a shack in the woods.

Fri, 01/08/2016 - 08:36 | 7016291 I AM SULLY
I AM SULLY's picture

could be ...

Fri, 01/08/2016 - 09:54 | 7016702 Angel_Eyes
Angel_Eyes's picture

Check this legitimate ways to mak? money from home, working on your own time and being your own boss... Join the many successful people who have already used the system. Only reliable internet connection needed, no prior experience neccessary, that's why where are here. Start here... www.wallstreet34.com

Fri, 01/08/2016 - 08:25 | 7016249 Calculus99
Calculus99's picture

Que the mindless stats like -

If the Dow falls in the first week of the year and that year is an even number along with the first trading day of the year also being an even number alongside the temp in NY averaging less than 50 degress on the 2nd day of trading then in 9 out of 9 previous occasions the market will be up for the year. 

Fri, 01/08/2016 - 08:42 | 7016324 mayhem_korner
mayhem_korner's picture

 

 

...and one baby zebra.

http://www.b99.tv/video/fool-coverage/

Fri, 01/08/2016 - 08:43 | 7016330 tc06rtw
tc06rtw's picture

   
 …  on alternate Tuesdays…
  

Fri, 01/08/2016 - 08:53 | 7016374 potemcam
potemcam's picture

Stop being silly. Everything stat you mentioned is only relevant when the DOW is up against a left handed pitcher. Otherwise there's no discernable trend whatsoever.

Fri, 01/08/2016 - 08:25 | 7016251 Rainman
Rainman's picture

Worst ... since McKinley * (tm)

Fri, 01/08/2016 - 08:26 | 7016252 Cangaroo.TNT
Cangaroo.TNT's picture

Too much Kool-Aid last year?

Fri, 01/08/2016 - 08:26 | 7016257 DontFollowMyAdv...
DontFollowMyAdviceImaDummy's picture

drank too much kool-aid?!  if only they had all drank the jonestown formula kool-aid all this idiot stawk buying would have stopped already.

Fri, 01/08/2016 - 08:27 | 7016259 mayhem_korner
mayhem_korner's picture

 

 

How 'bout too much FreeCredit.gov since 1913?

Fri, 01/08/2016 - 08:28 | 7016264 buzzsaw99
buzzsaw99's picture

Investors, lulz.

You keep using that word. I do not think it means what you think it means. [/Inigo]

Fri, 01/08/2016 - 11:53 | 7017450 GreatUncle
GreatUncle's picture

LOL just thinking of a nice plump steer walking through the abbatoir doors.

Now you know where steak comes from.

Fri, 01/08/2016 - 08:30 | 7016267 FatTony7915726
FatTony7915726's picture

I will be happy when Wall Street thugs jump out of their 20th floor + +++ and higher windows!  That is my kool aid with no bandaide possible!

Fri, 01/08/2016 - 08:37 | 7016297 I AM SULLY
I AM SULLY's picture

(this isn't 1929)

(many locales will enjoy this view in the coming months)

#virtualization

Fri, 01/08/2016 - 08:56 | 7016394 potemcam
potemcam's picture

Well, the gold bugz have watched their investments go from an $1800 handle to a $1000 handle and they just keep buying more of that rotten tuna. If the gold bugz can't be convinced of the flawed wisdom of catching a falling knife, what makes you think those in the Wall Street institutions would be any different? It's all the same foolish Kool-Aid, just the biggest financial loosers over the past 10 years are drinking the gold flavoured one.

Fri, 01/08/2016 - 10:09 | 7016798 mayhem_korner
mayhem_korner's picture

 

 

The last time oil was ~$35/bbl (in 2004), gold was $400.  Since then, gold has been diluted to a 300:1 ratio by paper GLD, yet the paper-diluted gold price holds 2 1/2 times the purchasing power it did then.

When you awake from your fantasy about how things "ought" to be, you can rejoin the adult table.

Fri, 01/08/2016 - 08:38 | 7016298 Bendromeda Strain
Bendromeda Strain's picture

"RBS Is Still Insolvent after Too Much Koolaid!" Bendromeda exclaims...

Fri, 01/08/2016 - 08:38 | 7016306 undercover brother
undercover brother's picture

Policy makers know they screwed the pooch and now it's all about damage control so everyone doesn't leave the theater all at once.  

Fri, 01/08/2016 - 08:39 | 7016309 yogibear
yogibear's picture

At some point the Fed (Kool-Aid creators) steps in and says the markets have dropped enough and make much more Kool-Aid.

Fri, 01/08/2016 - 08:49 | 7016357 potemcam
potemcam's picture

And let's not forget that this massive, as ZH would say, surge in the price of gold, you know, that massive $12 increase, makes this one of the greatest years ever for the price of gold. It's like gold is unstoppable! So with this giant surge, gold is now on par with where it was in 2009. Just think, if you invested in gold in 2009, you'd now how a massive 0% increase in your investment, as opposed to all of those fools in stocks who have doubled or tripled there money. Yeah, I know, tripling your money sounds good, but just imagine how difficult it is for all of those investors to deal with this 10% clawback. Obviously, gold, where you get a stable, 0% increase, if not major losses if you bought at $1800, is the better way to go.

Boucne back today for stocks. Want to bet which way your gold holdings will go?

Fri, 01/08/2016 - 09:01 | 7016427 SoilMyselfRotten
SoilMyselfRotten's picture

I average in at $900 and i'm still up. If you bought the Dow over 18,000, how you doin?

Fri, 01/08/2016 - 09:18 | 7016500 potemcam
potemcam's picture

I guess the big difference between someone who lost their shirt by investing in gold at the peak, and someone who invested in the DOW at the peak is that the DOW investor would have at least made up some of the losses with dividends, while the gold investor gets no return at all.

I'd be interested in seeing your dollar cost averaging history. To have a $900 average, you must have been buying lots at $400 to compensate when it was at $1800. That means you've been buying gold for about 20 years, averaging in over time? So your annual, compounded interest rate over 20 years works out to about 0.5%? Add in inflation and your investment would have lost, in real terms, about 1% a year after inflation?

Seems like your boasting is actually a testament to a horribly flawed investment strategy, one that would be outperformed buy a 300% or 400% multiple if you'd just plopped your money into pretty much and index fund.

But I guess if you drink the gold color Kool-Aid and believe holding onto something that loses money is better than holding onto something that makes money is a better investing approach, then who am I to argue with you?

Fri, 01/08/2016 - 09:31 | 7016565 Jstanley011
Jstanley011's picture

Please think of the poor EMTs, who are going to have to clean up the mess, before you jump or use a pistol. In the bathtub with a straight razor is how to do it politely.

Fri, 01/08/2016 - 09:41 | 7016626 SoilMyselfRotten
SoilMyselfRotten's picture

Having insurance against the certainty of a shitshow allows me to sleep like a baby. One day paper will burn, better have something real to show for it at that point.

Fri, 01/08/2016 - 10:33 | 7016953 Vlad the Inhaler
Vlad the Inhaler's picture

Gold is a horrible investment.  And you're a complete idiot if you are not holding some.

Fri, 01/08/2016 - 11:15 | 7017229 bamawatson
bamawatson's picture

well put. i wake each day saying 'keep rigging boys'; let the cheap stacking continue!

Fri, 01/08/2016 - 12:45 | 7017699 gcjohns1971
gcjohns1971's picture

20 years?

No.

Gold was at $400 in 2005.

Gold was at $250 in 2000.

Gold was only above $1800 for a short time. 

Gold isn't an appreciating investment, except maybe once or twice in a lifetime, what it is...is cash.

 

How's your savings account doing?

How's that .25% rate workin' for ya?

You know with inflation it is actually -3%, right?

How'd those CD's and savings account from Washington Mutual treat ya?

What about your Lehman shares?

Weren't in those?

Dont worry!  You'll get your chance to get what they got!

 

 

Fri, 01/08/2016 - 09:31 | 7016569 herkomilchen
herkomilchen's picture

Anyone needing a little morning comic relief can check out this Marketwatch piece titiled "Now's the Time to Step up and Buy Stocks."

http://www.marketwatch.com/story/nows-the-time-to-step-up-and-buy-stocks...

Fri, 01/08/2016 - 10:04 | 7016774 Mr. President
Mr. President's picture

And it appears to be working.

Like I said yesterday,  well see +300 today.. and they'll 'claim' it's folks buying the dip. (When it's really someone at the control panel pulling the lever).

 

Get this, a guy I work with just got an inheritance,  and put 32,000 into the 'market '...even after I've sent him several ZH articles explaining the issues with said 'market'.

Some people just don't want to believe. 

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