RBS: "This Is Simply The Worst Week We Had In Recent History... After Too Much Policy Kool-aid"
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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Bullish!
https://www.youtube.com/watch?v=VlVmdGiAH2A
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.
Robust!
Our biggest enemies......global warming.....and guns.
Take care of that.....and this economy will fly!
We pulled sales forward on a few folks
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!
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.
could be ...
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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.
...and one baby zebra.
http://www.b99.tv/video/fool-coverage/
… on alternate Tuesdays…
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.
Worst ... since McKinley * (tm)
Too much Kool-Aid last year?
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.
How 'bout too much FreeCredit.gov since 1913?
Investors, lulz.
You keep using that word. I do not think it means what you think it means. [/Inigo]
LOL just thinking of a nice plump steer walking through the abbatoir doors.
Now you know where steak comes from.
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!
(this isn't 1929)
(many locales will enjoy this view in the coming months)
#virtualization
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.
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.
"RBS Is Still Insolvent after Too Much Koolaid!" Bendromeda exclaims...
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.
At some point the Fed (Kool-Aid creators) steps in and says the markets have dropped enough and make much more Kool-Aid.
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?
I average in at $900 and i'm still up. If you bought the Dow over 18,000, how you doin?
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?
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.
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.
Gold is a horrible investment. And you're a complete idiot if you are not holding some.
well put. i wake each day saying 'keep rigging boys'; let the cheap stacking continue!
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!
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...
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.