Even 'The Rich' Aren't Buying This Rally

Tyler Durden's picture


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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Thu, 08/30/2012 - 09:58 | 2749301 LawsofPhysics
LawsofPhysics's picture

rich?  better define "wealth" first.

Thu, 08/30/2012 - 10:07 | 2749314 Dr. Engali
Dr. Engali's picture

They don't own their "wealth" their wealth owns them. When your "wealth" is in paper people like Corzine own it.

Thu, 08/30/2012 - 10:08 | 2749338 malikai
malikai's picture

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?

Thu, 08/30/2012 - 10:10 | 2749346 Freddie
Freddie's picture

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.

Thu, 08/30/2012 - 10:17 | 2749362 Juan Wild
Juan Wild's picture

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.

Thu, 08/30/2012 - 10:18 | 2749364 fredquimby
fredquimby's picture

Rational decisions come from taking information from all available sources, assimlating it and then making up your own mind.


Thu, 08/30/2012 - 10:20 | 2749380 Juan Wild
Juan Wild's picture

You also enable the propagandist agenda by PAYING for it.

Thu, 08/30/2012 - 10:32 | 2749410 shovelhead
shovelhead's picture

Freddie's still disturbed about that unfortunate incident while sitting on Capt. Kangaroo's lap.

Time to forgive and move on, Freddie.

Thu, 08/30/2012 - 10:03 | 2749318 GetZeeGold
GetZeeGold's picture



define "wealth" first.


Shiny pretty papers......with lots of zeros on them.


Thu, 08/30/2012 - 11:57 | 2749695 azzhatter
azzhatter's picture

I remember when $100K was big time money. Fucking fiat

Thu, 08/30/2012 - 10:00 | 2749305 slaughterer
slaughterer's picture

AMZN: all-time highs just minutes ago. P/E 305.  

Thu, 08/30/2012 - 10:01 | 2749310 LawsofPhysics
LawsofPhysics's picture

How's that crude $93 call working out for you?

Thu, 08/30/2012 - 10:03 | 2749324 GetZeeGold
GetZeeGold's picture



Not real well......I've got this black sticky crap all over me.


Thu, 08/30/2012 - 10:01 | 2749313 fonzannoon
fonzannoon's picture

What was their profit last quarter...a penny?

Thu, 08/30/2012 - 10:18 | 2749367 slaughterer
slaughterer's picture

Profit does not matter for Amazon.  Only the new Kindle generation.  

Thu, 08/30/2012 - 10:27 | 2749403 fonzannoon
fonzannoon's picture

You think the math adds up?

Thu, 08/30/2012 - 11:33 | 2749616 slaughterer
slaughterer's picture

Crude is below $94 right now, my call is doing fine.   Thank you for reminding me of it.

Thu, 08/30/2012 - 12:23 | 2749783 azzhatter
azzhatter's picture

they're making it up on volume

Thu, 08/30/2012 - 10:00 | 2749307 Shizzmoney
Shizzmoney's picture

Unemployment is up in half of US Cities:


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.


Thu, 08/30/2012 - 10:01 | 2749317 LawsofPhysics
LawsofPhysics's picture

Liquidity trap, bitchez.  End the damn Fed already.

Thu, 08/30/2012 - 10:06 | 2749332 toomanyfakecons...
toomanyfakeconservatives's picture

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/

Thu, 08/30/2012 - 10:27 | 2749402 Rasna
Rasna's picture


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...



Thu, 08/30/2012 - 11:01 | 2749510 larz
larz's picture

......and we the sheeple just watch and complain lets DO something!!! aanything!!!!

Thu, 08/30/2012 - 11:03 | 2749515 LMAOLORI
LMAOLORI's picture



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



"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."


MFG, Injustice, & Your Bank Account w J Koutoulas


Report: Cronyism, political donations likely behind Obama, Holder failure to charge any bankers after 2008 financial meltdown

Thu, 08/30/2012 - 10:01 | 2749311 DoChenRollingBearing
DoChenRollingBearing's picture

"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.

Thu, 08/30/2012 - 10:03 | 2749320 Dr. Engali
Dr. Engali's picture

The rich are using these rallies to cash out.

Thu, 08/30/2012 - 10:08 | 2749340 jelyfish
jelyfish's picture

That's my theory, pulling up the market to sell.

Thu, 08/30/2012 - 10:03 | 2749321 Xibalba
Xibalba's picture

run for the hills, run for your lives. 


Thu, 08/30/2012 - 10:03 | 2749322 Bastiat009
Bastiat009's picture

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?

Thu, 08/30/2012 - 10:07 | 2749337 Hedgetard55
Hedgetard55's picture

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.

Thu, 08/30/2012 - 10:12 | 2749354 SheepDog-One
SheepDog-One's picture

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.

Thu, 08/30/2012 - 10:04 | 2749327 sardonical1
sardonical1's picture

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.  

Thu, 08/30/2012 - 10:26 | 2749399 slyhill
slyhill's picture

Lack of trust?

Thu, 08/30/2012 - 10:10 | 2749347 SheepDog-One
SheepDog-One's picture

'The rich' are selling the top...duh.

Thu, 08/30/2012 - 10:11 | 2749348 sardonical1
sardonical1's picture

But one can determine buying and selling pressure by watching the indexes.  There hasn't been much distribution lately.

Thu, 08/30/2012 - 10:13 | 2749355 orangegeek
orangegeek's picture

Bigger picture for the SP500 is down.   In Elliott wave speak, primary 3 down is pending.



Thu, 08/30/2012 - 10:26 | 2749396 sardonical1
sardonical1's picture

Down in lower volume.  Not distribution--yet.  We'll see by the end of the day.

Thu, 08/30/2012 - 10:26 | 2749397 ekm
ekm's picture

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.

Thu, 08/30/2012 - 10:29 | 2749406 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

I'm sure Mr. Corzine is enjoying himself fully, despite Bloomberg propaganda to the contrary.

He really would look good in an orange jumpsuit.

Thu, 08/30/2012 - 10:33 | 2749409 dolph9
dolph9's picture

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.

Thu, 08/30/2012 - 10:33 | 2749415 NationalRazor
NationalRazor's picture

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. 

Thu, 08/30/2012 - 10:44 | 2749453 sardonical1
sardonical1's picture

That is an incoherent sentence, NationalRazor.  Makes no sense whatsoever.  

Thu, 08/30/2012 - 10:47 | 2749464 strangeglove
strangeglove's picture

I'll be in the Choomwagon, wake me when its over!

Thu, 08/30/2012 - 10:58 | 2749503 Inthemix96
Inthemix96's picture

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.


Thu, 08/30/2012 - 11:05 | 2749525 earnyermoney
earnyermoney's picture

Da rich need some suckas to realize their gains. LOL suckers

Thu, 08/30/2012 - 11:07 | 2749533 earnyermoney
earnyermoney's picture

Somebody should fly a plane over BofA stadium during Obamas speech with a banner asking "Where's Jon Corzine?"

Thu, 08/30/2012 - 11:10 | 2749542 JR
JR's picture

“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.


Thu, 08/30/2012 - 13:31 | 2750014 madcows
madcows's picture

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.

Thu, 08/30/2012 - 11:19 | 2749571 toomanyfakecons...
toomanyfakeconservatives's picture

Nice article... and just more fuel for the coming MASS ARRESTS... http://tinyurl.com/cd5cyjo/

Do NOT follow this link or you will be banned from the site!