Here's A Chart You Won't See On CNBC
What goes up, comes down considerably faster.
For global stocks, Bloomberg notes, the way down ($15 trillion lost in 7 months) has been much easier than the climb up ($30 trillion added in 4 years).
Source: Bloomberg
With markets from Asia to Europe entering bear markets this month, stocks worldwide have lost more than $14 trillion, or 20 percent, in value from a record last June amid worries over global growth and deepening oil declines. The pace of the drop has been so fast that it has already unraveled about half of the rally since a low in 2011.
And here is a bonus chart from Bank of America, which looks at the S&P on an equal weighted basis, to avoid such aberrations as the collapsing market breadth phenomenon, also known as FANG. Spot the symmetry.
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Because its not really money. Its the value of an asset based on what the market thinks its worth, not how much it can be sold for in the future.
Thats why borrowing on a paper assets "market" value should be made illegal.
When you go into the casino no underlying asset is being valued. Each transaction is simply one between you and the bank with no other parties affected or interested.
When you buy or sell a stock in the stockmarket, the price of the exchange affects the value attributed to every other stock of that same company. So you and the seller of a stock exchange money and stock at a (then) equivalent valuation, but the market gain or loss occurs on all the other stocks of that company.
So let's say there are 1000 shares outstanding of company A, and the last price is $100. Suddenly for some reason (it's poisoning its customers, or its accounts have been revealed as fabrications, etc) no one is making an offer to buy a share of the company. You step up and offer $80 for one share, thinking you are getting a bargain. So you exchange your $80 for that share which is now valued at $80. But so are all the other shares of company A. The value of the company, and the value of all the market investments in that company has suddenly gone from $100,000 to $80,000, a loss of $20,000, even though there has been only a single transaction for $80.
And then when the next transaction is for $50, the whole market value has fallen to $50,000, so a loss of stockmarket value of $50,000, revealed by 2 transactions that total $130 between them. And if everyone tries to sell and there are no buyers, the price goes to virtually $0 with no trades.
The same principle applies on the way up and the way down.
It was never there in the first place. It was all a fantasy, What they tell you is the value of the market is just a notional value ascribed using fake ponzi printed dollars from the fed.
You can only know the value when you sell it and can count the cash in your hands.
The so called super rich never had any real wealth, Or at least what they counted as real wealth was just this imaginary number of dollars they could get if they sold it today.
The 30 trillion was fake, it was just numbers conjured out of the air by the fed, and now its come to the point when the so called rich realize they need to exchange that fake wealth for real wealth in the form of cash.
Did any really believe that their retirement accounts and 401's really went up threefold in the last few years.
Only if you sold it before Christmas and have the cash. Other wise, it find its true value, and that could be many many months or even years from now as it keeps going down.
Remember, the so called super rich own virtually nothing else but fake wealth and they are now desperate to convert it to real cash.
That is why the MSM trolls are desperate for you to hold or buy.
If you buy, you exchange your real dollars for fake ponzi dollars from some rich bastard desperate to unload his fake shit.
I you want to preserve or get rich from this, then short, buy puts, buy inverse EFT's with a vengeance and drive it lower, force the rich o sell even faster, and drive the market lower.
But whatever you do now, sell everything you have invested in the market and hold cash.
As these elite fuckers see the market fall they get ever more desperate to unload their shit onto you or each other, those stock options are crashing at a phenomenal rate and the C suite fraudsters are burning now.
Throw petrol on the fire and sell sell sell.
Remember, this is the biggest by a fucking long waaaaayyyyy of fake ponzi shit dollars injected into markets, and this unwind is going to be epic.
When some fat fucking banker is watching his notional "wealth" disappear before his eyes and he wants to still be in the pecking over after the dust settles, what does he do.
He fucking sells, he fucking sells at whatever price he can get, so that he doesn't lose it all and his place in the pecking order.
Remember also, for the super rich it is just as important to be in the top 0.001 % top 0.01 % or even the top 1% no matter the notional value, so their prime motivation is to keep their place and NOT to fall from being in the top 1,000 to be merely in the top 100,000
Time to fuck them over boys, short like no fucking tomorrow and make hay
And the Admiral said, "Bring me my brown pants."
That is, by far, the best comment on ZH, I have seen, today!
+100
Thanks!
What I DID see on CNBC was Tyler Mathesin lose his breath watching a stock drop 53%.
CNBC banned me today for calling them FED cocksuckers on Disqus.
Welcome to the club!
(Someone else noted the jump scenes earlier.) Yes! The jump scenes, excellent comment! I feel kinda bad agreeing but, not really! Holy jeebus am I becoming one of them? Nah. Jump you bastards, jump!
At least $15tn to go.
BUY THE DIP!
I like french onion myself...
I guess the old saying about individual stocks holds true for the markets at large.
First they climb up the stairs, then they jump out the window.
escalator up elevator down
Yeah, that's not nice. Thumbs down.
On a positive note, now that so many people are laid off, they have more time to read about the collapse.
This might be a good time to have a trial run for a weekend with no electricity, to see what I need to stock that I might not have thought of before.
just knew that "DOW 15K" hat would come in handy again... Forward Comrade!!!
Capitalist= "Mean and Greedy".
Socialism (word stolen by communists)= What's good for you and yours is probably directly/ indericetly good for us.
Nash (A Beautiful Mind) Theorem: A mathematical proof showing what's good for you and yours IS good for us.
Assholes.
I don't even know who CNBC is.
Lol it seems the market is peddling fiction!
Lol it seems the market is peddling fiction!
3:30 is one hour away. Up up and away.
Geez! The markets REALLY ARE broken, gold should be crashing with all of this bad news! Or is this good news? I'll bet it is for somebody.....................................................................................................
This will continue through the rest of the month too as quarterly results suck. You didn't hae to be a Nostradamus to see the market was going to dip this month given the crappy Q1 numbers and guidance adjustments.
Moved almost all stuff out before Christmas and will stay there. I won't even look again at buying again until we hit 13 or 13.5k
All the pretty colors...
Sorry for those who followed the standard guidance of the MSM and retail investment advisors and put 40% of their retirement fund into stocks. Looks like they’ll be working their job a few years longer than expected……………………. unless they’re working for Walmart, in which case they probably got laid off already.
Life sucks, then you die.
It loks like one of my favorite sayings, "It doesnt matter until it matters." Well, perhaps it looks like it now matters. Years of financial fraud and kicking the can down the road will have consequences.
Everybody here at ZH gets it. We are one implementing moment away from a fucking financial disaster, which could last for years.
Reverse Repo'ed
Meanwhile in Canada idiots are buying $800,000+ for a dilapidated farm house next to a highway.
I can't believe that there are still people who haven't figured out that this market hase a enormous probability of crashing 30 to 40 percent in the next 2 months.
Didn't see it comming... It only happend 3 times in the last 15 years.
The National Team arrives.
Bloomberg will say "individual investors decided the selling was overdone" (and all clicked their mouse at the same instant, of course).
Warning: If this chart 'does' appear on CNBC, you might consider closing your shorts.
Idiot sputnik propaganda tells: Russian Economic Development Minister Alexei Ulyukayev said that ministry's forecast figures show 2.3-percent GDP growth for 2016.
Versus when reality starts to kick in
The ministry's base scenario sees gross domestic product (GDP) shrinking by 0.8 percent in 2016, while a conservative one predicts a 1.0 percent decline, according to the document seen by Reuters.
....last 2 bear mkts gave up 2yrs of gains in the first 6 mos....and we have accomplished this again right now. 1860 goes back to Feb 2014. ....but as Retail will say next Wednesday, 'oh good, glad THAT is over. we had a health correction and now we have it all priced in and can look for growth around the corner....nice man on teevee says earnings to grow 14% in 2016;
most of that market cap was created with QE money out of thin air converted into stock buybacks so the miracle is it doesnt all evaporate. at the bottom we should have a good idea how much real monetary inflation there is. strangely the feds recent rate hike bonus plan does at least provide the banks with something that meets the definition of expanding the money supply. eight years of monetary masturbation, when its over the bond market may have outperformed equities.if the fed had just raised rates in 2008 we could have skipped that part.
Escalator up -- Elevator down
We're in a liquidity trap, where the prior increases in artificial demand (low interest, QE, gov't borrowing) to prop up the market run out of boost - once no more consumer demand can be "brought forward". That's why oil demand fell - then the prices. http://www.zerohedge.com/news/2015-08-21/oil-crash-result-excess-supply-...
Not even Nobel prize winning proponent Paul Krugman cites any success stories of a healthy exit from "stimulus" in all his writings - I searched for 10 years, offering $200 rewards on all fiscal forums the proponent experts gathered. Zero.
Economist Keynes said this: "Lenin was right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
I had predicted any interest rate rise will crash the economy, the math is easy. I thought we make it to 1 or 2 %.
Just like 30 years of steadily falling debt made borrowing way too easy, now to return to normal rates, creates corresponding awful interest payments on the economy. What goes up, must come down - with interest paid - thus making all sustained deficit periods too burdensome to repay - a default cycle has to occur, capitalism's strongest feature.
The quarter-rate point hike could have been enough to start the herd running.
We have to eat the frog. Get out now.
http://www.amazon.com/dp/1458217566
Charts are fucking useless when predicting the future of the market. A dip in the market at one time is not equal to a dip in the market another time. Parameters change from dip to dip. Now if someone is smart, they can write a program with all the possible twirks that move the market and inject their formulas into the program while the variables are dancing around the musical chairs. Better yet, contact the Oracle of Delphi for interpretation of the scrambled gizzards of a gnat. Both work just as well when predicting the future movement of the market. Oooo...look at that shiny gizmo.
riding the CAD all the way to the grave
Here are some signs of a coming recession.
1. Investors in high-yield bonds are expecting to see their first negative return since the start of the credit crisis in 2008.
http://www.marketwatch.com/story/deteriorating-junk-bonds-flash-warning-signs-for-stocks-2015-12-07?dist=afterbell
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Iron ore prices tumble
http://www.marketwatch.com/story/iron-ore-prices-keep-crashing-adding-to-global-growth-fears-2015-11-30
6. Baltic dry shipping index tumbles
http://www.marketwatch.com/story/shipping-index-falls-to-all-time-low-stoking-fears-about-global-growth-2015-11-19
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
I can't share this to FB why???
Nice big ass head and shoulders formation on that market cap chart. If it plays out look like it will wipe the whole lot out.
Nice big ass head and shoulders formation on that market cap chart. If it plays out look like it will wipe the whole lot out.
To quote Howard Cosell, when BHO leaves office..."look at that monkey run!"