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Even 'The Rich' Aren't Buying This Rally
Despite the near multi-year record highs in stock indices, which have typically correlated tick-for-tick with the-wealthy-people's view of the world, today's Bloomberg Consumer Comfort index sub-data has a rather nasty surprise in its tail. Those earning over $100k, the highest bracket interviewed in their survey, saw their 'comfort' plunge to its lowest of the year - massively diverging from the incessant rise in equity markets (and its supposed 'wealth effect' transmission channel).
This is the largest 4-week plunge in almost two-years...
Source: Bloomberg
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rich? better define "wealth" first.
They don't own their "wealth" their wealth owns them. When your "wealth" is in paper people like Corzine own it.
It's also an election year and most people with a few functioning braincells are aware that this is just a show election. They feel bad because they can sense things are terribly wrong and only going to get worse.
Where was this sentiment at this time in 08?
Anyone who watches TV or Hollywood's shit enables this and the overlords. I bet over 80% of ZH posters watch TV. Nice job serfs. Morons.
I don't watch tv. I canceled my satellite service. If I want to hear the propaganda, I'll just go to CNN.com. When I want to be enlightened I visit zerohedge.
Rational decisions come from taking information from all available sources, assimlating it and then making up your own mind.
#twat
You also enable the propagandist agenda by PAYING for it.
Freddie's still disturbed about that unfortunate incident while sitting on Capt. Kangaroo's lap.
Time to forgive and move on, Freddie.
define "wealth" first.
Shiny pretty papers......with lots of zeros on them.
I remember when $100K was big time money. Fucking fiat
AMZN: all-time highs just minutes ago. P/E 305.
How's that crude $93 call working out for you?
Not real well......I've got this black sticky crap all over me.
What was their profit last quarter...a penny?
Profit does not matter for Amazon. Only the new Kindle generation.
You think the math adds up?
Crude is below $94 right now, my call is doing fine. Thank you for reminding me of it.
they're making it up on volume
Unemployment is up in half of US Cities:
http://www.huffingtonpost.com/2012/08/30/unemployment-rate-on-the-rise-h...
You'd think with all that capital saved from not hiring labor, that "The Rich" would be buying more and more shares, as they suckers they are.
Liquidity trap, bitchez. End the damn Fed already.
The Fed will end with a whimper... and with Brenanke, Obama, Timmy G. and hundreds of other top traitors to the Constitution being paraded in front of the cameras in chains and orange jumpsuits... http://tinyurl.com/cd5cyjo/
Puhleeeeze!
Timmah already has his corner office with Golden Slacks picked out and decorated... O has gone from owing thousands in student loans to being a multi-millionaire in less than 4 years... Bernank has lifetime tenure... The Shrub... errrrr Bush and his cronies set the pattern with shredding the Constitution and are still walking around knocking back 150 year old single malt Scotch... O ran the Constitution through th shredder a second time...
AND WHERE THE HELL IS CORZINE, AND WHY THE HELL IS HE NOT IN JAIL!
......and we the sheeple just watch and complain lets DO something!!! aanything!!!!
Speaking of Corzine look at this and what a bunch of bull he's considering legal action corzine has already been given a pass by holder and obama
snip
"But even as the trustees opened the door to a settlement, Mr. Freeh criticized Mr. Giddens for recently suing Jon S. Corzine and other top MF Global executives. Mr. Corzine, a former New Jersey governor, was MF Global’s chief executive. In the filing on Wednesday, Mr. Freeh formally objected to Mr. Giddens joining a lawsuit filed by the firm’s customers.
He accused Mr. Giddens of “attempting to assign claims that belong to and benefit the general estate to representatives of the customers.” Mr. Freeh is also considering legal action against some executives, which could be complicated by Mr. Giddens’s lawsuit. Some people close to Mr. Freeh would have preferred that Mr. Giddens join their case rather than teaming up with the customers.
But Mr. Jarrell argued that Mr. Freeh has “some inherent conflicts in opposing” Mr. Giddens’s actions. Some of the executives named as defendants in the case, including the chief financial officer, are currently employed by Mr. Freeh."
http://dealbook.nytimes.com/2012/08/29/freeh-calls-for-peace-in-fight-over-mf-global-money/
MFG, Injustice, & Your Bank Account w J Koutoulas
http://www.youtube.com/watch?v=jrbUqDl3uls&feature=youtu.be
Report: Cronyism, political donations likely behind Obama, Holder failure to charge any bankers after 2008 financial meltdown
"Markets climb a wall of worry."
Old Wall Street saying, maybe this is how many bull markets go.
Still, this rally sure does "feel" different that 1999 - 2000.
The rich are using these rallies to cash out.
That's my theory, pulling up the market to sell.
run for the hills, run for your lives.
http://www.youtube.com/watch?v=K7ToNJHgp-w
At least, when house prices went up, it was because many people were buying them, not paying for them, but buying them.
Now, stock indexes are going up and up and up even though no one is allegedly buying stocks. What gives?
Ben is buying (well, that means you and me) through ZIRP and his proxies. Unfortunately for the proxies, there are no more retail fools to unload to before the end comes.
Right, the Fed is selling the rich stocks and bonds TO us thru their 'stimulus' efforts....its really too bad more people cant see theyre simply monetizing the debt.
I don't see how this information is useful for trading purposes. Institutions are what make the market move--not upper-middle-income retail investors. Thus, why should one avoid a tradeable rally just based upon news and rumor? Silly.
Lack of trust?
'The rich' are selling the top...duh.
But one can determine buying and selling pressure by watching the indexes. There hasn't been much distribution lately.
Bigger picture for the SP500 is down. In Elliott wave speak, primary 3 down is pending.
http://bullandbearmash.com/chart/standard-poors-500-weekly-august-24-2012/
Down in lower volume. Not distribution--yet. We'll see by the end of the day.
No shit. They've reading Zerohedge, that's why.
As I've been saying: NO MORE SUCKERS.
Primary Dealers are stuck with BAC and S&P stocks with nobody to sell to.
I'm thinking Morgan Stanley is next for liquidation. It seems to me that MS is the one making most of the noise to lure suckers.
I'm sure Mr. Corzine is enjoying himself fully, despite Bloomberg propaganda to the contrary.
He really would look good in an orange jumpsuit.
In other words the middle class isn't buying the rally.
It takes millions of dollars of liquid wealth (at least 10-20 million) in today's money to be rich, and even then that's just the starting level.
Its Bens and the hole in the Wall Street gangs rally.These are the ultimate insider traders.And as for getting stuck with stock because they cant find a bigger fool to sell to, thats no problem, theyll just sell it to your 401k and make a profit on the deal at the same time.
That is an incoherent sentence, NationalRazor. Makes no sense whatsoever.
I'll be in the Choomwagon, wake me when its over!
You would have to be a downs syndrome, Yelloe fever infected, Ebola surviving 16 year old retard to buying this shit.
Hell, even I wouldnt buy it.
;-)
If the economy wasn't dead as a doornail, ...
http://confoundedinterest.wordpress.com/2012/08/30/jobless-claims-stuck-at-dec-12-level-consumer-confidence-remains-weak/
Da rich need some suckas to realize their gains. LOL suckers
Somebody should fly a plane over BofA stadium during Obamas speech with a banner asking "Where's Jon Corzine?"
“Rich” is the latest English word to achieve political status; used by the manipulators of wealth distribution to tap the resources of citizens who still have a dime left. Typical is a man I heard on a call-in talk show this week whose income was $110,000 a year. And on that, he is now broke, not because he is a spendthrift or a bad manager but because the taxes and fees of his government are taking all of his money.
His story is typical: a college graduate, bought a house that was within his means, has worked every day of his adult life to pay his bills, obeys the laws and trys to live within his income.
But, he explained, I cannot make it now because the taxes and fees – Federal, state, local – and cost of living increases are now taking all of the income.
Um, yeah, I registered my cars. It cost $111,000.
In most parts of the country that is very good salary. i'd question what he thinks living in his means is. Lawn service, McMansion, three cars, etc...
I'm betting that he could live cheaper. I'm also betting that his taxes and fees haven't shot up nearly as much as his grocery and gas bill.
Nice article... and just more fuel for the coming MASS ARRESTS... http://tinyurl.com/cd5cyjo/
That's actually VERY Bullish - and shows why we are now in Day Seven of Yahoo Boards being closed to Humans - with as of today a TDAmeritrade ad as the sign-in screen! (Hahaha, so funny - NOT!)
The "rich" have much of their money tied in with hedge funds.
Hedge funds are badly underperforming again.
Hedge funds are badly underperforming again because they are geared to Short sales versus Long positions, and Short sellers have been squeezed to death for months now.
Ergo, the "rich" are pessimistic because the market has been too strong, not too weak.
They want the market to correct as much as possible, because it would help the hedge funds which hold much of their money.
They also think it would help secure a GOP victory - which is as UNtrue as possible at this point, by the way.
We don't have the "richest" versus everyone else in America right now, where markets are concerned.
We have the "richest" - whose money is always pretty much passively managed and on the Short side - versus the Rest of the Investor Class, who actively trade and manage their own money, and are overwhelmingly on the Long side, believing the Market Nadir was reached this past summer, with most Hedgies apparently off vacationing and therefore not realizing it.
THEY now have to catch up to US, instead of the other way around.
All of the above is absolutely accurate - whether some Self-Anointed Ones like it or not.
Those earning over $100k, the highest bracket interviewed in their survey,
Who is kidding, over 100k rich? Blah.