World Stocks Hit All Time High, S&P Futures Rise To Within 1% Of Record

Tyler Durden's picture

After yesterday's violent gap up in stocks across the globe in response to the "expected" outcome from the French election, today the risk on sentiment has continued if to a lesser extent, with stocks in Europe, Asia all rising while S&P futures point to a higher open. Yen, gold decline, while the euro traded as high as 1.09 this morning before fading some gains; oil is up modestly.

While today's surge may have been more muted, world stocks hit a new record high on Tuesday, with investors still cheering Macron's victory in the first round of the French presidential election, supported by speculation about U.S. tax reform and the overnight report that Trump has conceded on the border wall, eliminating a government shutdown as a potential risk. As shown below, the MSCI All World Index has jumped to a new all time high, boosted by strong Asian markets.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, hovering near its highest level since June 2015 hit earlier in the session, on its fourth straight day of gains. Japan's Nikkei rose more than 1 percent to a three-week high aided by a weaker yen. South Korea's also advanced 0.7 percent to its highest level since April 2015. China equities climbed from a three-month low on speculation that a selloff over concerns of a regulatory crackdown were overdone. Australia and New Zealand were closed for Anzac Day.

European stocks hovered near a 20-month high, with the Dax flirting with all time highs. The Stoxx Europe 600 index edged 0.2% higher after jumpin 2.1% on Monday to the highest since August 2015, with property and technology shares helping to underpin a global rally. French shares pulled back 0.1 percent, having risen 4.1 percent on Monday in their biggest daily gain since August 2012. Futures on the S&P 500 added 0.1 percent. The index climbed 1.1% Monday to within 1% of its all-time closing high.

These gains helped push MSCI's world stocks index to a fresh all-time high after chalking up its biggest rise since shortly after Britain's vote last June to leave the European Union.

So with attention to France fading, if only until the runoff round in the election, "attention will fast move over to Washington with the outline of the Trump tax plan likely tomorrow, the need to avoid the shutdown on Friday and the end of the first 100 days of Trump on Saturday" with the White House determined that higher growth can offset tax cuts, DB's Jim Reid wrote in his overnight note. 

Commerzbank currency strategist Thu Lan Nguyen in Frankfurt, however, said that "(the second round) is going to be a non-event for the market. Markets have pretty much priced out the risk of a Le Pen victory, and rightly so, because the first round of the elections has shown that the polls in France were correct...and this increases the confidence in the polls for the second round...It's highly likely that (Macron) is going to win."

With one of the year's major risks to markets seen less acute, markets were also looking ahead to other factors, including U.S. President Donald Trump's promise to announce on Wednesday "a big tax reform and tax reduction". The Wall Street Journal reported Trump wanted to cut the corporate tax rate to 15 percent. The White House budget director told Fox News on Monday Trump's announcement would focus on principles, ideas and rates. "I'm becoming little concerned over the President’s big announcements, especially since we haven’t seen any major legislative achievement so far and he will be marking his 100th day in the White House this Saturday," said FXTM chief market strategist Hussein Sayed in a note.

Elsewhere, the ECB said in a quarterly survey of lenders that while banks would tighten access to credit for companies in the second quarter, lending volumes were still expected to rise.

The euro added to Monday's gains against the dollar, rising 0.2 percent to $1.0884, albeit off Monday's high of $1.0940. The yen, however, pulled back 0.6% to 110.39 per dollar. Sterling rose 0.1 percent to $1.2806. The Canadian dollar 0.5 percent to C$1.3561 per U.S. dollar after the United States announced new duties averaging 20 percent on Canadian softwood lumber imports.

French and German 10-year government bond yields rose and the spread between them hit its tightest since November at around 41 basis points. The two-year spread was its narrowest since late January. The yield on French 10-year notes rose two basis points to 0.85 percent, after tumbling 11 basis points in the previous session. German benchmark yields added four basis points to 0.37 percent. U.S. bonds headed for a fifth day of declines, with yields on 10-year Treasuries climbing three basis points to 2.31 percent.

Gold fell 0.4 percent to just under $1,270 an ounce. Copper reversed falls in Asia and headed higher, last trading 0.7 percent higher at $5,695 a tonne. Oil prices steadied after six straight days of losses. Brent crude, the international benchmark LCOc1, was just 4 cents down on the day at $51.59 a barrel.

Economic data include new home sales, April consumer confidence. Scheduled earnings include AT&T, Coca-Cola, McDonald’s. Alphabet Inc., Microsoft Corp., Amazon.com Inc., Twitter Inc., Intel Corp., Credit Suisse Group AG, Barclays Plc, Bayer AG, Daimler AG and Total SA are among major companies releasing results this week. The Bank of Japan is widely expected to keep the settings on its monetary easing program unchanged at the end of a two-day policy meeting on Thursday. Though inflation remains well below the central bank’s 2 percent target, it’s ticking up. The European Central Bank sets monetary policy later that same day. With officials indicating little chance of a policy change, the focus will be on any signals from President Mario Draghi that the ECB is starting to discuss an exit from its extraordinary stimulus.

Global Market Snapshot

  • S&P 500 futures up 0.1% to 2,372.75
  • STOXX Europe 600 up 0.1% to 386.57
  • MXAP up 0.8% to 148.90
  • MXAPJ up 0.9% to 485.69
  • Nikkei up 1.1% to 19,079.33
  • Topix up 1.1% to 1,519.21
  • Hang Seng Index up 1.3% to 24,455.94
  • Shanghai Composite up 0.2% to 3,134.57
  • Sensex up 0.8% to 29,898.45
  • Australia S&P/ASX 200 up 0.3% to 5,871.78
  • Kospi up 1.1% to 2,196.85
  • German 10Y yield rose 2.5 bps to 0.354%
  • Euro up 0.2% to 1.0888 per US$
  • Brent Futures up 0.1% to $51.67/bbl
  • Italian 10Y yield fell 8.0 bps to 1.888%
  • Spanish 10Y yield rose 4.4 bps to 1.649%
  • Brent Futures up 0.1% to $51.67/bbl
  • Gold spot down 0.5% to $1,270.54
  • U.S. Dollar Index down 0.1% to 99.00

Top Overnight News from Bloomberg

  • President Donald Trump’s plan to slash the corporate tax rate to 15 percent is setting up a showdown with House Speaker Paul Ryan, who has called for a tax plan to pay for itself
  • French billionaire Bernard Arnault moved to consolidate control over Christian Dior for about 12.1 billion euros ($13.2 billion), folding the fashion house’s operations into the LVMH luxury empire in one of his biggest transactions
  • Rising defaults in China are unearthing hidden debt at companies across the country
  • Warburg Pincus, the private equity firm where former Treasury Secretary Tim Geithner is president, is targeting $1.6 billion for its first fund dedicated to financial services
  • Credit Suisse Group, two years into a belt-tightening turnaround plan, splurged a bit last month in Texas
  • Trump Slaps Duty on Canada Lumber, Intensifying Trade Fight
  • Trump Signals Shift on Wall Funding to Avert Government Shutdown
  • U.S., North Korea Flex Military Muscles as Tensions Simmer
  • Netflix in China Licensing Deal With IQiyi, Variety Reports
  • Berkshire Hathaway Buys 3.88m Liberty Siriusxm Series C Shares
  • Diebold Nixdorf to Support TD’s 5,000 ATMs in North America

Asian equity markets maintained the positive momentum from the strong Monday close where the French election relief rally spilled over and tax cut hopes also buoyed sentiment. Nikkei 225 (+1%) was underpinned as USD/JPY reclaimed the 110.00 handle, while the KOSPI (+1%) also shrugged off geopolitical concerns amid no further signs of provocation from North Korea which conducted a firing drill to commemorate its 85th military anniversary. Elsewhere, Shanghai Comp. (+0.2%) and Hang Seng (+1.2%) were higher following an increased liquidity injection by the PBoC, although mainland bourses were somewhat restrained on trade concerns and the ASX 200 was shut for ANZAC day. Finally, 10yr JGBs continued to reclaim the losses seen from the French election with prices back above the 151.00 level, while today's enhanced liquidity auction for 10yr, 20yr and 30yr maturities also drew greater interest. PBoC injected CNY 40bIn in 7-day reverse repos, CNY 20bIn in 14-day reverse repos and CNY 20bIn in 28-day reverse repos.

Top Asian News

  • China Markets Reel as Banks Unwind $1.7 Trillion in Shadow Funds
  • India’s Central Bank Chief Says Cash Ban’s Effects ‘Transitory’
  • Iron Ore Seen Slumping for Years After Hitting February Peak
  • Japan Post Books $3.6 Billion Charge on Toll Holdings Writedown
  • IRB InvIT Plans to Raise up to 50.4b Rupees Through IPO

European bourses have seen a tamer session with local markets trading in mixed fashion, CAC 40 slightly trims post-election gains, falling a meagre 0.1%, similarly with the DAX which hovers around record highs. In terms of equity specific newsflow, LVMH outperforms after reports that they are to simply the Christian Dior which would subsequently boost their earnings, while Peugeot shares slip this morning on news that French prosecutors are to conduct a formal investigation over diesel emissions. Across credit markets, OATs are marginally extending on their outperformance, with the 10yr tightening against German benchmark to around 41bps. The German curve has shifted to a bear steepening bias with the 30yr +0.25bps.

Top European News

  • LVMH to Buy Christian Dior Couture; Arnault Christian Dior Bid
  • Arnault to Buy Rest of Dior for $13 Billion, Bolstering LVMH
  • U.K. Faces $2 Billion EU Demand on Customs Failures, Times Says
  • U.K. Meets Borrowing Forecasts But Consumer Slowdown Hits VAT
  • Rocket Internet Narrows Losses, Boosts Sales at Key Startups
  • Oil Steadies After Six-Day Slide as U.S. Stockpiles Seen Falling
  • German-Only Power Futures Start Trading Ahead of Market Split
  • Dutch Minister Kamp Continues to Support Independent Akzo: BNR
  • Brexit Districts in Tory Sights as May Seeks Bigger Majority
  • Volvo AB Shares Hit 10-Year High on Construction-Equipment Sales

In currencies, the euro rose 0.2 percent to $1.0892, retreating from near the highest level in five months. The yen fell 0.6 percent to 110.47 per dollar. The currency dropped 0.6 percent in the previous session. The Bloomberg Dollar Spot Index was little changed, after slipping 0.5 percent Monday. It has been another trading session where London liquidity calms things down to (less than) a cantor. We continue the CAD under pressure in the wake of the US trade case against Canada, where they propose a tariff on lumber tax to the tune of 20% - worth USD 1.0bIn on current imports stateside. However, the first line of USD/CAD resistance looks to have held, but we will have to contend with North American trade ahead, so we factor in the broader resistance area from 1.3600 up to 1.3675. 1.3850 is the next lever to watch if we manage to work through here. Tariffs on dairy produce have also been threatened given Canadian reclassification on ultra-refined milk from the US, and this has had a clear impact on the NZD, which has slipped below .7000 against the USD, and through 1.0800 vs the AUD. In the meantime, the near-term calm in risk sentiment has allowed USD/JPY bulls some modest upside through the lower 110.00's, but we start coming up against some tech resistance through 110.50, with the slow grind higher stalling in the last hour or so accordingly.

In commodities, gold lost 0.5 percent to $1,270.46 after slipping 0.6 percent on Monday. Oil advanced 0.3 percent to $49.40, rebounding from six straight days of losses before U.S. government data that’s forecast to show crude stockpiles fell for a third week.  Copper prices have seen some upside pressure as reports of the Chilean earthquake hit the wires. This is in tandem with the end of the strikes in the Cerro Verde mine in Peru. Market is now looking to test USD2.60 again, with the current risk on mood also supportive for base metals in general. Iron ore struggling though, as Chinese stockpiles weigh. Little risk related relief for Oil however, as US production tempers the impact of the current production cut agreement, the extension of which is still seen in the balance, but recent OPEC rhetoric remains hopeful. Below USD50.00, we see plenty of support ahead of USD45.00, the bottom end of the broader range in WTI. Precious metals still fading slightly, as Gold now floundering ahead of USD1270.00. Silver looks to have established near term footing, but risk/USD sentiment flighty at present to maintain a modicum of support.

US Event Calendar

  • 9am: FHFA House Price Index MoM, est. 0.4%, prior 0.0%
    • S&P CoreLogic CS 20-City MoM SA, est. 0.73%, prior 0.86%
    • S&P CoreLogic CS 20-City YoY NSA, est. 5.77%, prior 5.73%
    • S&P CoreLogic CS 20-City NSA Index, prior 192.8
    • S&P CoreLogic CS US HPI YoY NSA, prior 5.87%
    • S&P CoreLogic CS US HPI NSA Index, prior 185.5
  • 10am: New Home Sales, est. 583,500, prior 592,000; New Home Sales MoM, est. -1.44%, prior 6.1%
    • Conf. Board Consumer Confidence, est. 122.5, prior 125.6
    • Conf. Board Present Situation, prior 143.1
    • Conf. Board Expectations, prior 113.8
  • 10am: Richmond Fed Manufact. Index, est. 16, prior 22

 

Looking at the day ahead today, we got April confidence indicators out of France this morning (manufacturing confidence: 108 actual, 104 expected; 105 previous). Shortly after that we got the ECB’s bank lending survey numbers, which saw slightly tighter standards for business loans in Q2. In the US we will get housing market data in the form of the S&P/Case-Shiller house price index and FHFA house price index (+0.4% mom expected) for February. Thereafter we will see confidence indicators for the month ahead in the form of the conference board consumer confidence number (122.5 expected; 125.6 previous) and the Richmond Fed manufacturing survey (16 expected; 22 previous), both of which are expected to drop given growing policy uncertainty in the US.

DB's Jim Reid concludes the overnight wrap

The only tears shed yesterday in markets were ones of pure joy as risk-on dominated following the first round of the French elections. Over in Europe the STOXX 600 (+2.1%) hit its highest levels since mid Aug 2015, while the CAC rallied by +4.1%. Every single sector within the STOXX index was safely in positive territory, with European banks leading the way with outsized gains of 4.8% on the day (Eurozone banks in particular were up by 7.4%). French banks were some of the best performers on the day with Credit Agricole (+10.9%), Societe Generale (+9.9%), Natixis (+9.0%) and BNP Paribas (+7.52%) all within the top ten gainers in Europe. Italian banks also benefited from the broader risk on sentiment as Unicredit (+13.2%) and UBI (+10.4%) both posted double digit returns. Other regional equity indices also reflected the broader relief rally as the FTSE, DAX, and FTSE MIB all gained by +2.1%, +3.4% and 4.8% on the day. Markets over in the US also benefited from the risk on sentiment as the S&P500 (+1.1%) and Dow (+1.05%) both posted gains, as financials were the top performer within the S&P with gains of 2.2% on the day. Market volatility measures also dipped aggressively yesterday with the VIX (-3.7pts; -26%) and VSTOXX (-8.9pts; -35%) giving up recent increases to drop to three week lows.

Credit markets also saw broad risk on moves. Main and Crossover tightened by -6bps and -16bps on the day, while Senior and Sub Financials tightened by -10bps and -20bps. French Bank Senior CDS also rallied as Societe Generale (-21bps), BNP (-18bps), and Credit Agricole (-16bps) all saw significant spread tightening. Over in the US CDX IG and HY also tightened by -3bps and -12bps.

Over in government bond markets German bunds (2Y: +10bps; 10Y: +8 bps) and US treasuries (2Y: +5bps; 10Y: +2.5bps) sell off across all maturities. On the other hand French OAT yields dropped across the curve (2Y: -14bps; 10Y: -11bp) as the OAT-Bund 10Y spread tightened by -19bps. Italian BTPs also saw yields drop across the term structure (2Y: -5bps; 10Y: -8bps) amid the rally. Over in currency markets the Euro ticked by +1.05% on the day after giving up larger gains at the open and then hardly moving all day. Commodity markets however remained largely unaffected by the risk on rally: WTI was down marginally at -0.7% while Gold remained fairly flat after falling slightly in the Asian session the night before.

Attention will fast move over to Washington with the outline of the Trump tax plan likely tomorrow, the need to avoid the shutdown on Friday and the end of the first 100 days of Trump on Saturday. The WSJ reported last night that Mr Trump has ordered aides to prioritise cutting taxes ahead of budget neutrality and in particular target a 15% corporate tax rate. Treasury Secretary Mnuchin was bullish by telling reporters at the White House that the tax plan will "pay for itself with economic growth" and that Mr Trump is determined to get sustained growth of 3% or higher. So all eyes on the US for the next few days.

Asian markets are generally in decent shape overnight with the Nikkei +0.8% higher, the Hang Seng +0.95% and the Shanghai Comp +0.45% as we go to print. Global bond yields are pretty flat as is the Euro against the Dollar.

Returning back to yesterday, the latest ECB CSPP numbers were released. They remain inconclusive as to whether the ECB have decided against tapering corporate purchases. The Easter period has created too many distortions to give a clear answer. If you assume the €1.482bn of buying is spread over 4 business days this averages €371mn per day very close to the daily average of €368mn since the program started. However if you feel the ECB would want to try to offset the loss of a day with more buying then the numbers are optically weaker. We should have a clearer view next Tuesday (after bank hols) as to where we stand as they'll publish the full monthly numbers then for both CSPP and PSPP.

Away from the French elections there was little in way of data to drive markets yesterday. In Europe we got the April IFO survey in Germany which was mostly positive: the business climate indicator (112.9 vs. 112.4 expected) and the current assessment indicator (121.1 vs. 119.2 expected) both clocked in above expectations. However IFO expectations marginally disappointed by dropping to 105.2 (vs. 105.9 expected; 105.7 previous). Over In the US we got the April Dallas Fed manufacturing activity survey which ticked down marginally to 16.8 against expectations of a slight increase to 17.0 (16.9 previous).

Looking at the day ahead today, we will get the April confidence indicators out of France this morning (manufacturing confidence: 105 expected; 104 previous). Shortly after that we will get the ECB’s bank lending survey numbers. Over in the UK we will get public sector net borrowing data for March which is expected to rise to 1.5bn (1.1bn previous). Heading over to the US we will get housing market data in the form of the S&P/Case-Shiller house price index and FHFA house price index (+0.4% mom expected) for February. Thereafter we will see confidence indicators for the month ahead in the form of the conference board consumer confidence number (122.5 expected; 125.6 previous) and the Richmond Fed manufacturing survey (16 expected; 22 previous), both of which are expected to drop given growing policy uncertainty in the US.

Earnings will continue to be a big focus today, as we see AT&T and Caterpillar report today amongst others.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nmewn's picture

Buy all the things! 

Don't miss out! ;-)

Haus-Targaryen's picture

I feel like we all need a distraction today.  

Here is Mr. Dong showing everyone the property technique for addressing lower back pain:

https://www.youtube.com/watch?v=Y8HvsgHBGMc

NoDebt's picture

Do I really want to click on that?

 

Haus-Targaryen's picture

Its SFW, its ASMR which I have playing in the background constantly.  No idea how this showed up on the playlist, but I am so sick of "OMFG BUYYYYY THE ALL TIME HIGH GUYZZZZ" I could puke.  

Here is Mr. Dong showing everyone property technique for a neck message: 

https://www.youtube.com/watch?v=vpBKBs18lls

 

NoDebt's picture

OK, here's one maybe you'll like:

https://youtu.be/NE6415eqzWI?t=2m41s

Kid getting hit in the chest by a lawn dart.  (Fake but still funny)

 

BorisTheBlade's picture

Asset prices never go down, debts don't matter, facts are irrelevant. Revenues and dividends? Daphuck is that?

cstu7011's picture

Exactly now go buy Tesla stawk!

BorisTheBlade's picture

At these prices I'd expect a complimentary trip to Mars and back.

Arnold's picture

When my dividends were paid in borrowed money,
I gave up glue and looked hard at pre FenFen heroin.
Settled for mescaline, but got beer.

NoDebt's picture

There has never been a better time to invest in stawks.  Except 2009.  And 2010.  And 2011.  And 2012.  And 2013.  And 2014.  And 2015.  And 2016.

 

TheNuclearGenie's picture

Markets are going up everywhere now. Has been a fantastic time to be invested in stocks since 2010. Keep going!

Last of the Middle Class's picture

First they printed QE, now they're going to stealth print until each and evey one of you realize the ONLY investment is the stock market! Invest or have your ass diluted by fiat manipulation out of existence. This economy will not be allowed to break free of government/banker control and seek it's own levels through competition. Accept your position in life and buy stocks with the risks knowing full well they're doing the same thousands of times a second with software you're not even allowed to see or go lunch with the middle class at Micky D's with their QE deflated fiat. It's your choice.

Clock Crasher's picture

Hyperinflation

It's what's for breakfast

cstu7011's picture

Going to cash in all my metaal for 2 shares of Tesla!!! Why wait??!

AUD's picture

An old Welsh Justice mounted on a goat,

Is ask'd which way his worship means to trot,

To London he is travelling, quoth he,

To sell Welsh copper, and to buy South Sea.

overmedicatedundersexed's picture

the sell side is happy..why not yellen is not sellin..bloated with .gov debt and equities..

Trump is the master of BK..please lord let Trump put the FED in BK..and bring back treasury notes..oh don't go near Dallas when you do Mr Trump..wink wink.

venturen's picture

my question is why no one ever thought to just print Trillion after trillion of debt money before. I mean this is just genius....unlimited debt forever! What could go wrong

Ghordius's picture

"Commerzbank currency strategist Thu Lan Nguyen in Frankfurt, however, said that "(the second round) is going to be a non-event for the market. Markets have pretty much priced out the risk of a Le Pen victory, and rightly so, because the first round of the elections has shown that the polls in France were correct...and this increases the confidence in the polls for the second round...It's highly likely that (Macron) is going to win." "

now... if Le Pen does not win, this could become... strange. because the Dutch general election polls were already quite accurate. and those German state election... too. and if the German general election polls also come out as accurate...

what would all this mean? that there is a problem in the two countries where they weren't?

NoDebt's picture

"that there is a problem in the two countries where they weren't?"

I know I shouldn't do this but OK, I'll bite.  What the fuck does that question mean?

 

Ghordius's picture

NoDebt, what kind of media do you follow?

did you not notice that "polls failed in the US and UK, and so they will fail to be dependable everywhere else"?

did you not notice that "populism advanced in the US and UK, and so they will advance everywhere else"?

gunzeon's picture

what the europhile is suggesting is that the countries where Brexit and Trump won, despite poll predictions, are fucked up while France and the Netherlands are not.

Maybe it's just an obedience/faith in authority/media thing that causes the divergence, and that to the european mind this is a "problem"

Ghordius's picture

actually, I'm just reverting back to my pet prejudice. which goes roughly like this:

"English-speaking MSM... including right-wing peddlers of lies like Fox News (Murdoch) and the four tabloids in the UK (Murdoch and co.) is completely messing up the minds of Americans and Brits"

and this "messing up" includes your "obedience/faith in authority/media" stuff, and includes your "the european mind..."

your minds are being messed up from your "left", your "liberals", your "right" and your "far-right"

and, interestingly, this makes you think that the whole world is in the same situation as you, or worse

now, because this thread shows how much all this looks like my prejudice is right... the conclusion: if September comes and both the French and the German elections do not follow those patterns highlighted by the English-speaking press...

... what happens then? soul-searching? reflection? introspection? nah, don't think so. by then, you might have a new fad to follow

gunzeon's picture

actually, the fad was "World Stocks Hit All Time High, S&P Futures Rise To Within 1% Of Record" and just made a casual observation wrt the various elections that have happened lately; did not want to get off-topic on the chat roll, we take this stuff on board because it affects our money, not because we are shilling for this or that political cause ... Pen wins gold goes up, Macrobn wins stocks go up, i do not care, i am hedged.

Hyjinx's picture

Right, French media isn't propaganda. Why don't you guys just accept 50 million more rapefugees in all your enlightenment.

MK13's picture

What it means is that France and Netherlands are fucked up and voters in those countries can't see that - and not US and UK. Or the government teet in those 2 countries is so powerful, there is no going against the establishment.

gunzeon's picture

well, at least they're not foaming at the mouth to start WW3, voting style aside

MK13's picture

What it means is that France and Netherlands are fucked up and voters in those countries can't see that - and not US and UK. Or the government teet in those 2 countries is so powerful, there is no going against the establishment.

Tell me what brilliant solution will pro-EU globalist shill and Rostchild banker Macron offer to France to combat 10-12% unemployment, week to monthly terrorist attacks, and drowning debt? Ah, more refugees and more debt I see. That will work out so well, I have no doubt.

EU is a political walking dead show - and no EU country wants to face that reality because of pain involved. But pain is already and will be worse by year by year.

wmbz's picture

Just sit back and enjoy the ride to DOW 30,000. Everything is awesome!

Megaton Jim's picture

Who needs gold or silver when you have the stock market?!?

Arnold's picture

How is it that Our Governance has all my dough to throw down in the Casino?

ECB thinking of a rollback.
BoJ owns enough private equity to be a small country.
PBoC is inventing fiat again.
FedRes owns a controlling interest in my debt, who knows in what instruments.

I'm thinking that the silver bullet for all these guys has been cast.

The will to use it is lacking.

Megaton Jim's picture

Can you say, "pump and dump?" Sure, I knew you could................

2_legs_bahhhhhd's picture

Just waiting for the coffee enema to kick in. All this monetary injection has me blocked up tighter than a frogs ass.

Sky flyer's picture

Think I'll buy some shares of the sears or J.C. Penney. Maybe just buy all retail stocks.

Arnold's picture

A suggestion for all your newly acquired properties.
High school field houses.

cstu7011's picture

Assuming this is good for the power grid? They won't want to cut the power when things are so awesome right?? Right??

oh wait...

 

 

 

 

 

new game's picture

it is all good, my proof is the world has never been a safer place to live.

7 billion plus happy campers. peace on earth has finally taken hold.

no country holds world reserve currency status with onmi potent threat of war.

banks are regulated by world arbitrage of checks and balances.

governments are shrinking. local power structure returns.

voting matters.

yup, a major event happened!

bank one and its power structure were defeated by a bloody ordeal.

survivors jailed as ass foder for the pedofiles jailed too.

kumbaya hoo...

 

Dilluminati's picture

Averting a shutdown. <check!>

Cutting Corporate Taxes <check>

Rotate QE to stocks and banks <check>

Rotate deflation to wages <check>

Raise Interest rates <check>

burden debt holders <check>

The feet underneath this economy or/our consumer of last resort "has no legs".  This is a disaster in the unfolding like Greece and allot of the new cash going into the market is going to disapear.  Jack Ma has it correct when he says that the disrruptive technologies will inflict pain around the globe.   What we see as reactionary poloticians today are mild in what we will see in the future.

Welcome to the age of discontent. 

If Trump couldn't do healthcare reform why would anyone imagine that he could do a wall?

The recapitalization of banks is what is setting new records.

However watch the net cash outflows, what is really happening is that on slimmer volumes of trades block selling of smart money is exiting, thats what is called patience money.  Patience money beats ignored or neglected money which the baby boomers and those 15 years out of retirement will need.   So no, this will not end well.  Even though schills who speak of animal spirits claim you cannot time a market all the data shows that people who do try do better if they: remember to take the profits from the table at highs, and remember to buy at lows or corrections.  You have to sell high and buy low to make money and you need the cash when you need to withdraw it.

What has in effect happened is that the jobless recovery is now expired unemployment claims or discouraged workers living in their parents home, and now the parents are next to get the axe.  1/3 of all millenials not participating meaningfully in the USA economy, the numbers much, much higher for same age group globally.  

I don't think anyone can fix the mess western culture now finds itself. We are all now Greece.

Save yourself.  Buy a used book at Amazon, read it twice, find the money for the exam site at a local college and be not denied, do that as many times as required, my next will be my 7th.  You don't need no sticking tuition just a book and a test date.

But yeah folks, this doesn't end well and could go on further.. but like allot of bubbles you should be grabbing the money and getting to exits.

Especially keep an eye on the legal weasel on funds for dollar in and dollar returned on money markets and sweep accounts, "break the buck" is possible and possibly only to term FDIC is safe.  If not own a gun and garden.  

Break the Buck = too many debts chasing too few dollars

Deflation = too many debts chasing too few dollars

Don't look now the but the legal weasel changed check to see if your money market can pay less than a dollar?  Corporations get tax cut of 15% and employess got a price hilke in interest on debt and healthcare costs.  The legal weasel changed because the outcome is UNDERSTOOD.

God bless and keep your health up to date.. Don't put off getting dental etc done.. the system could go off the rails and that could get very difficult, don't take that for granted no matter how eff'd up... get services needed and don't delay.

 

 

 

 

yogibear's picture

It's becoming apparent that it's Zimbabwe economics American style. Just print 10's of trillions of Federal Reserve dollars to fund this fantasyland in Washington.

Anything to push inflation to 200%, 300%, 400%, 1000%.  Just keep printing.

Greater levels of irresponsibility while the lower 70% will not be able to afford to eat.

Dilluminati's picture

By creating that debt this comes to a faster end then most imagine.. student loans just got more burdensome and consumers have less to spend.  The corporations will not share the wealth of a 15% tax cut but spend it on speaking fees for ex presidents.  This goes deflation.. 

 

Iconoclast's picture

Hopium meet Kool Aid, breathe in the rarified atmosphere and guzzle down the poison. Once Trump reveals the corporate tax reduction, the DJIA and SPX will rise by 5%. Oh and he makes himself $200 million richer. What's not to like?

Squid Viscous's picture

CAT $102, full retard!

silverer's picture

The EU taxpaying serfs and voters of France of course take this as positive news as they stay on the path to the financial guillotine.

NDXTrader's picture

When you can borrow money at 0% and buy physical assets with it (for now) it's surprising everything isn't higher. Everything will be soon

Seasmoke's picture

Weeks like this make me wish I had the balls to be a fraudster and financial criminal. I am starting to feel like I would really enjoy it and would like to see how many people I could steamroll. Of course. It's only business not personal.

RabbitOne's picture

Economics are going to hell in America because there are currently not enough taxpayers to support socialism in America. For 50 years our government has filled the law books with “entitlement”  bills that give voters (or anyone) pay outs. However in this Ponzi scheme they forgot that it requires new tax payers to keep paying to keep the system afloat.   

Socialism failed its own purposes. Once white people took up socialism they bought into its promises and they stopped having large families (who would have supported them if there was no government support). Add to this abortion and the pill and white people in America and Europe did not produce enough tax payers to support the socialist Ponzi scheme. There may be another explanation for this trend. The more affluent a society becomes, several factors unleash. The birthrate declines sharply, for as people become wealthier, women prefer not to have children. The poorest cultures have the greatest number of births because children take care of their parents. In our new age of socialism, government has replaced the family unit. Ask a girl under thirty in the United States if she wants to have children today and you are likely to get the answer, “No.”

The implications economically, financially, societally, etc. etc. of a collapsing population of young and soaring older population should be ringing alarm bells...but instead our politicians seem officially mindless (or intentionally misleading the populace) in the face of a cataclysmic shift. Without enough tax payers to pay for socialism’s promises western governments decided to import immigrants who still have large families (and produce lots of tax payers). Typical of those imported immigrants with large families are poor Muslim’s or poor Hispanics. So until they have the boat load of tax payers they need Western countries will have large numbers of refugee’s to fill the tax payer void and will continue to run deficits and raise taxes to try to pay for the Ponzi scheme.

Connect the dots:
There were 76 million people born between the years 1946 and 1964, the traditional window for the baby boom generation. That means that they will retire over a 19-year period. Simple math shows that 76 divided by 19 is 4 million, or almost 11,000 people a day. Say 1,000 die a day. The biggest event in America today is we have l0,000 Baby Boomers retiring each day for years to come. The biggest problem in America is we cannot for the duration support these retiring Baby Boomers. The reason we cannot support these baby boomers is we have not produced a large enough group of supporting taxpayers.

Why are there not enough taxpayers to support retiring Boomers?  Government eliminated 60 million future tax payers with making abortion legal. Also it is estimated up to 30 million tax payers were prevented by the cheap birth control pill. And lastly the dissolution marriage as an institution in America has created much smaller family units than prior generations and single family moms have had 20 million fewer babies. This means 120 million tax payers are missing to pay for the retiring baby boomers. 

How is our government replacing the missing revenue from lack of taxpayers? To replace these missing tax payer’s government has allowed 61 million immigrants plus into America to replace our missing tax payers to support the boomers (the total is estimated to be 94 million). These immigrants are fast tracked getting jobs our youth should have using subsidies from the government. Dems and Repubs are together on this.  Democrats want the immigrants as future party supporters. Republicans want their cheap labor.

Why are so many Muslims the primary immigrant people imported? Muslims don’t have abortions, norr for thee most part take the pill and most Muslim women are not single moms. It is not uncommon for Muslim families to have the 6 to 10 children like white families used to have in America. Congress is counting on this group to generate many of the missing tax payers. Hispanics run a close second in this immigrant equation.

Why is America a bankrupt government? Revenue from current taxes is too low to pay for increasing entitlements and retirees. Deficits and debt plug the entitlement hole until immigrants produce enough taxes to fill the entitlement hole . Government is betting immigrants will produce the taxes to pay for retiring Baby Boomers before America goes belly up. Once the U.S. world reserve currency runs out and the government can no longer print bucket loads of money and debt they will strip the U.S. citizens cupboards bare to keep going. Need more proof on America’s bankruptcy? Look up Kotlikoff’s senate testimony in Feb 2015.   

Conclusion: The goal of American socialists is socialism not your prosperity. The political elite socialists in current American government will take everything you own to preserve and protect “...entitlements...” at your expense.

Jungle Jim's picture

Aand gold continues to plunge like a rock. 

Jungle Jim's picture

Aand gold continues to plunge like a rock.