• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

With An Hour To Go - Which Sector Is Outperforming Post-QEternity?

Tyler Durden's picture


Everyone will be chasing high-beta? QEternity 'fixes' our problems? HHhhmm, not so much. While the fact that Utilities are undrperforming makes some sense, the fact that Healthcare is the clear winner (and Goldman Sachs and Morgan Stanley the big losers) is fascinating...


Performance post-FOMC announcement on Thursday...

Sectors - Healthcare is the big winner?


and the higher-beta financials are the bigger losers?

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Fri, 09/21/2012 - 15:12 | 2818988 fightthepower
fightthepower's picture

Fuck you Bernanke!

Fri, 09/21/2012 - 15:16 | 2819003 Temporis
Temporis's picture

In socialist America the Bernanke fucks you!

Fri, 09/21/2012 - 15:20 | 2819011 Mark Carney
Mark Carney's picture

If by high beta you mean gold and silver...then yes, absolutely YES

or if you mean Goldamn Sux....then no.

Fri, 09/21/2012 - 15:31 | 2819048 slaughterer
slaughterer's picture

Those Hedge Fudge managers who front-ran the QE3 rally in healthcare are mostly still underwater. Look at David Einhorn's avg price for HUM and WLP and the current p/s of these.  Whereas the new GS "quality" basket is doing very well post-QE3 (no financials there as well, though).  

Fri, 09/21/2012 - 15:37 | 2819062 samcontrol
samcontrol's picture

Fuck you and thank you..BB

But to respond to the article BIOTECHS

I happen to have a shit loads of paper CYTX..

Cytori .. REGENERATIVE medecine..

tits , heart , tissue you name it..

IT'S on fire ..major announcement on the 24th..

I like gold but i,m still alive ..so..

Fri, 09/21/2012 - 17:49 | 2819387 Divine Wind
Divine Wind's picture



The regenerative medicine arena is definitely a big deal.

Don't know the company, but think the field is worth a well researched position, in direct registration of course.....

And that is from a phyz metal - mining share hound.

Hoping that by the time my parts start breaking down that companies like Cytori and others will supply replacements like the local autoparts store.

Fri, 09/21/2012 - 15:14 | 2818998 RSloane
RSloane's picture

Go long on type 2 Diabetes medication and HC software.

Fri, 09/21/2012 - 15:18 | 2819008 HedgeFun
HedgeFun's picture

Tells me traders are betting Romney will win.

Fri, 09/21/2012 - 15:20 | 2819013 Dalago
Fri, 09/21/2012 - 15:37 | 2819068 Cone of Uncertainty
Cone of Uncertainty's picture

Team Obama is buying intrade shares to boost his percent chance of winning figure...it's all fucking smoke and mirrors.

Romney will be our new slave master in November.


Fri, 09/21/2012 - 15:34 | 2819060 LMAOLORI
LMAOLORI's picture



Health care, telecommunications and defense industry workers are fueling President Barack Obama’s re-election campaign, even as Wall Street walks away from his candidacy.


Health Care

As for health care, the administration worked with stakeholders such as drug companies and hospitals in developing his plan and “they’re comfortable with Obama’s policies,” Fenn said.

Checks from those workers have helped Obama out-raise his Republican challenger, Mitt Romney. The Democratic incumbent brought in $356.5 million through July 31, compared with $197 million for Romney, a former Massachusetts governor, Federal Election Commission reports show. (more at link)


However since that article was written just 3 days ago Wall St has returned to O

Fri, 09/21/2012 - 20:51 | 2819684 andrewp111
andrewp111's picture

ObamaCare helps most parts of the healthcare industry, especially the unionized parts (like hospitals). Doctors, not so much. Sounds like a bet on an Obama win.

Fri, 09/21/2012 - 23:46 | 2819829 pacu44
pacu44's picture

That means Obama will win... Just sayin.

Fri, 09/21/2012 - 15:32 | 2819033 kevinearick
kevinearick's picture

And the drug dealers run back to healthcare. that was a fast turn around.

want to turn the dial up again?

tell jpm you have health issues and you need a principle mod. start with housing. or just grow your own community.

Fri, 09/21/2012 - 15:28 | 2819044 Thecomingcollapse
Thecomingcollapse's picture

<========= Fuck you Bernanke!!

<========= Bernanke is brilliant and has it all figured out

Fri, 09/21/2012 - 15:35 | 2819061 slaughterer
slaughterer's picture

BB is brilliant because he raised the price of PMs to 6 month highs.   All of you gold-silver bugs here who dislike BB are hypocrites because your "piles of phyzz" are benefitting quite well from the neg. consquences of QE3 right now--at least right now.  FU BB should be replaced by "Thank You Chairman, may I have some more (for my PMs)."  Acknowledgement rather than profanity.  

Fri, 09/21/2012 - 15:41 | 2819081 marathonman
marathonman's picture

Sad but true.  Ben takes from the 95% to give to the 1% with a little filtering through the 4%.

Fri, 09/21/2012 - 15:52 | 2819093 WhiteNight123129
WhiteNight123129's picture

Is Warren Buffet owning Gold? Is GOOG sitting on dollars or Silver? I bet the rednecks have a lot more % of their assets in SIlver than GOOG or MSFT Inc,. So the revoluationary Rednecks will get a windfall while GOOG[s cash will get fucked if they do not have the intelligence of spending it into a new project and hire some construction workers to build the datacenter, someone to drive the truck to dig the foundations, someone to manage the infrastructure.

I FORGOT, consumers are deep in debt, if you force up the nominal wages by forcing GOOG to spend and all the rich to spend, you do not buy more stuff with those higher nominal wages but you repay more debt. But do not rush in paying your debt, you will repay it with only a few pieces of silver and then you can give the finger to the capital owners and politicians who abused usury law, removed prudential measures of loan to Value, and prudential measure of bank leverage. 

The one hurt by Bernanke right now are NOT the same who were hurt during the leverage phase, the transition is messy, but bring a few coins of Silver to your bank in five years to repay your mortgage and give them the finger. If Bernanke does not print you will not be able to do that.


Fri, 09/21/2012 - 15:42 | 2819083 WhiteNight123129
WhiteNight123129's picture

Exactly. But he will stop printing, he will, and then it will be and interesting time straddle strategy to play in....


Fri, 09/21/2012 - 15:54 | 2819101 akak
akak's picture

Slaughterer stated:

BB is brilliant because he raised the price of PMs to 6 month highs.   All of you gold-silver bugs here who dislike BB are hypocrites because your "piles of phyzz" are benefitting quite well from the neg. consquences of QE3 right now

You are short-sighted and blind to the larger picture.

Yes, Bernanke's actions have benefited those who hold gold and silver, as far as their savings go --- but you overlook the fact that EVERYONE is hurt by the ongoing debasement of the dollar, due to the fall in the real value of their incomes.  Unless one is living SOLELY on their savings, with ALL of those savings being in precious metals, then they have been, overall, hurt by Bernanke's actions, even if the value of their savings have risen as a result.

Do YOU live solely off of your savings, with ALL of those savings in precious metals?  If not, then you statements above are ridiculous and idiotic.

Fri, 09/21/2012 - 18:08 | 2819129 WhiteNight123129
WhiteNight123129's picture

~due to the fall in the real value of their incomes.~

In a dishoarding situation from capital owners, wages will trail food and energy, but the value of the mortgage and credit card debt that you owe will vanish.... A lot of people are crumbling under debt with a risk of losing one of the two jobs and with kids and trying to keep their homes and with credit card debt.

Go Benny Go, chase the rich and Corporations hoarding their cash and not spending with your monstrous Gun. Do like the the Inglorious Bastards chasing Nazis. Wack them with your printing press if they do not surrender and spend their cash. Those people at the bottom have no savings, and quite some debt and sometimes only with one job. If the rich and the Corporation keep hoarding their dollars no jobs. Go Benny Print those guys into oblovion until they release their cash in the economy. 



Fri, 09/21/2012 - 16:33 | 2819166 JuliaS
JuliaS's picture

An excellent point! I can buy gold with my income, but my salary isn't gold adjusted or gold denominated, so even though I can instantly secure myself against devaluation, my paycheck is still going down regardless. Likewise, money disappears from every other saver and producer who'll eventually have to surrender and close down shop.

It's not about my own survial, but about survival of everyone with whom I share interests and do business. Fed may be making me rich on paper, but I'd rather be an ordinary person in a stable world than have this phantom fortune that may one day become as illiquid as housing equity.

Enrichment that comes without mutual benefit is no enrichment at all.

Fri, 09/21/2012 - 16:48 | 2819263 WhiteNight123129
WhiteNight123129's picture

Do you have 0 debt? If you have 0 debt, save in Silver. If you have some debt, do not rush into paying for it, wait for Ben to make it go away.


Fri, 09/21/2012 - 17:17 | 2819295 JuliaS
JuliaS's picture

I have zero debt. I keep 80% of my savings in physical gold and silver in equal proportion. The remaining 20% is in domestic and foreign currency. I keep PM's not to enrich myself picking tops and bottoms but to spend when and if I'm unable to work. If I manage to generate enough income into retirement years I intend to pass all of my savings onto my children. I require nothing over the absolute survival minumum. I have no retirement plans other than to work until the day I die.

Fri, 09/21/2012 - 18:10 | 2819422 WhiteNight123129
WhiteNight123129's picture

Buy Plantations, if you can access foreign markets, otherwise there are some listed in London, be picky, but if you are not picky, or do not know how to choose, you can stay in Gold and Silver.

Fri, 09/21/2012 - 17:33 | 2819357 Chump
Chump's picture

I have a substantial portion of my mortgage still outstanding and my wife has federal student loans we pay on.  Part of me wants to devote myself to getting rid of both as quickly as possible (which means decades).  The other part of me says fuck it, money as we know it won't exist in decades, so keep building various stockpiles.

Leaning towards the latter at this point.  With a supply chain interruption it's going to be awfully hard for the sheriff to come kick me out of the house.  Lots of variables at play here though.

Fri, 09/21/2012 - 18:26 | 2819425 WhiteNight123129
WhiteNight123129's picture

Do not repay too fast your debt, it will go down against nominal income and precious metals. Let s pray Bernanke prints away your debt.


Fri, 09/21/2012 - 16:19 | 2819169 slaughterer
slaughterer's picture

Look at the chart of DXY USDI after previous rounds of QE: some global disaster always pushes the world investment community back into the $USD/T-Bills so that the "debasement of the dollar" is not really that severe over time lately.  

Real income is not rising because employers need to cut payroll expenses to offset rising input costs on their margins and they realize that the employment market is 'captive' to their take-it-or-leave-it salary offers.

Of course, I am not living off of my savings in precious metals.  In fact, I disposed of all of my paper PMs today.  

So far, the expected hyper-inflationary disaster has not happened as a result of any recent QE.   ask yourself why.  

Fri, 09/21/2012 - 16:41 | 2819236 WhiteNight123129
WhiteNight123129's picture

Do not look at the DXY as the mirror image of forcing monied capital back into circulation (which is long term stagflationary). DXY is a function of capital flows (carry trade and tradable sector flows).


Fri, 09/21/2012 - 16:50 | 2819265 JuliaS
JuliaS's picture

QE forces the rest of the world to readjust in the exact same direction. QE in the US means Japan, ECB, China, Australia and every other country with a central bank launching QE's a month down the line ending up exactly where we were in relative terms. Monkey see monkey do.

Why haven't QE's translated into hyperinflation? Bacause they haven't boosted salaries. All the money went to absorbing losses banks had on their books. The money wasn't going to business owners setting up for expansion, boosing hiring, creating labor shortage and igniting bidding wars. The money didn't go into things that cause hyperinflation.

In Weimar Germany the government was paying salaries of striking workers with printed Deutchmarks. It was paying people not to work. Those people then went on and spent their unearned salaries on products, generating deficits. Money was there, things money could buy were not.

We are in an exact opposite situation right now. Money is not making its was to consumers. Meanwhile the shelves are loaded with useless product far exceeding demand.

There's no danger of a bank run due to people not having money to pull out of their accounts. If the consumers were to panic and head over to stores to cash in, what would they be spending? Welfare checks and food stamps?

Lots of programs that provide consumption means (like the food stamps) are crisis sensitive. If banks and governments start going down, so will the ability to purchase essentials.

People will not flood supermarkets to buy whatever's left on the shelves. They'll storm in with bricks and hammers and shop Katrina style.

We'll have an environment very similar to a hyperinflationary crash, without an actual hyperinflaiton. Money will still exist, money will still be valued, but no one will have money to spend... so they'll do the next logical thing - just take whatever they need.

That is what I think is likely.

So, to answer your question again. Why hasn't QE caused a hyper-inflation? Because it went straight into the fire pit of mark to fantasy accounting. It cancelled out a portion of a much bigger negative number without creating a net positive.

Fri, 09/21/2012 - 17:36 | 2819365 akak
akak's picture


Look at the chart of DXY USDI after previous rounds of QE: some global disaster always pushes the world investment community back into the $USD/T-Bills so that the "debasement of the dollar" is not really that severe over time lately.

The DXY, as you well know, does NOT measure the real value of the US dollar, only its relative value against other similarly depreciating fiat currencies.  -1 for even suggesting that it can be used to compare the REAL value of the US dollar from one year to the next.

So far, the expected hyper-inflationary disaster has not happened as a result of any recent QE.   ask yourself why. 

Again with the disingenuous and specious false dichotomy of the deflationary flat-earthers: "Deflation or Hyperinflation". 

Actually, the REAL value of the US dollar has suffered significantly in the last four years, as you would know if you do any shopping, or pay any bills.  Just because hyperinflation has not happened, and may not even be on the horizon, says nothing about the ongoing and significant depreciation of the US dollar.

The price of gold has increased by over 100% in the last four years --- ask yourself why.

Fri, 09/21/2012 - 18:10 | 2819424 TheFourthStooge-ing
TheFourthStooge-ing's picture

akak said:

The DXY, as you well know, does NOT measure the real value of the US dollar, only its relative value against other similarly depreciating fiat currencies.

Jesus Christ on a banana bike with a sissy bar! Only a gas huffing trailer park denizen uses the DXY for anything other than a short term crap measuring stick. All the DXY does is compare the relative valuations of turds contained in an international collection of turds.

It's no more useful for measuring real value than would be a similar index comparing beanie babies, commemorative plates, and crap like the gold buffalo replica coins "plated with 15 milligrams of pure 24 carat gold" advertised on CNBC.

-1 for even suggesting that it can be used to compare the REAL value of the US dollar from one year to the next.

The dollar index is in about the same place it was four or five years ago. I remember people freaking out because it was close to dipping below 80.

The price of gold has increased by over 100% in the last four years --- ask yourself why.

Spoiler alert! Answer below:





Because we are experiencing deflation in terms of real money (i.e., gold and silver).

Sat, 09/22/2012 - 00:58 | 2819869 gonetogalt
gonetogalt's picture

As it is, so shall it always be.

Fri, 09/21/2012 - 15:40 | 2819075 WhiteNight123129
WhiteNight123129's picture

Thank you Bernanke for Baffling the stock market, those guys are totally bewildered... he he he....You got to love it... 20+ years Long bond holders, we have you for dinner, one piece at a time we are patient, if one country gets out of euro, you will look like you are coming out alive from the plate but we will put you to sleep and eat you piece by piece again.... Equity owners, your torture will be longer and more protacted, you will have ups and downs and you will be exhausted in 8 years from now. Then maybe the grand master of the machine will maybe, if we have deleveraged enough give you some re-leverage Spinach and you will come out strong and raging again, and the commodities guy will see kryptonite in leveraging and will go in the vampire coffin again. THe grand master is not the central bank BTW, he is merely taking orders from the Grand Master, the Grand Master it is not the Rotschild, it is just the order of things, it is a cycle, a circle, it is built in banking systems (metallic order, you just get to choose a flat line and quick variations along the flatline with sharp falls from a low leverage level, or you get an upward sliding slope with elastic money with very long and exaggerated cycles --speculators love the second type, much more fun--. The benefit of the second system is the absence of sharp fall, none of the two is without deficiencies.





Fri, 09/21/2012 - 15:47 | 2819100 MrPook
MrPook's picture

1 day returns are fucking meaningless. you guys are lucky to make any money

Fri, 09/21/2012 - 16:09 | 2819139 samcontrol
samcontrol's picture

the market are only up since 2009 lows wtf you talking about?

Fri, 09/21/2012 - 16:09 | 2819140 samcontrol
samcontrol's picture

the market are only up since 2009 lows wtf you talking about?

Fri, 09/21/2012 - 16:09 | 2819141 samcontrol
samcontrol's picture

the market are only up since 2009 lows wtf you talking about?

Fri, 09/21/2012 - 16:09 | 2819142 samcontrol
samcontrol's picture

the market are only up since 2009 lows wtf you talking about?

Fri, 09/21/2012 - 16:09 | 2819143 ebworthen
ebworthen's picture

Jim?  Jimmy Cramer?

Fri, 09/21/2012 - 16:12 | 2819149 ebworthen
ebworthen's picture

Sooner or later Germany is going to say "nein" to periphery bailouts and the U.S. Banks will feel the pain.

However, the Crony Empire of U.S.S.A. will not allow the sickare industry to reduce costs and will not rest until every family has cashed out every asset and claimed bankruptcy to get a throat swab and rectal temperature taken.

Fri, 09/21/2012 - 16:13 | 2819153 walküre
walküre's picture

We're not even back to the 2007 peak. Despite trillions of electronic currency sloshing around.

3 supposedly big monetary events, some referreing to them as QE1 QE2 and QE3

Last time was the infininty edition. The previous 2 rounds had a limited shelf life.

Put all of this into perspective.

We are still listening to many of the same people and they're dishing much of the same narrative. They will keep their game goin for as long as they want as long as it benefits them.

Nobody is asking how the markets dropped and were slashed in half 4 years ago. Nobody is asking how that actually happened and where the money has gone. Just like nobody cares to investigate how the passport of one alleged terrorist survived the collapse of the WTC.

You realize we're all being had, right? They're laughing at us because they know we are either too stupid to figure it our or too weak to do anything about it once we found out.

Fri, 09/21/2012 - 16:55 | 2819278 WhiteNight123129
WhiteNight123129's picture

You are not stupid and only cynics are laughing at you because they believe being cynical makes them smarter. It does not. Go into hard assets and watch the capital owners (bonds and stocks) get fucked back because they have being sawing the branch on which they were sitting. The reason the stock market plunged was due to scare of deflation. In deflation debt are recouped at cents on the dollar and equity vanishes. The threat being removed is like trampoline for stock markets, but it has a second round of consequence when monied capital gets converted into circulation, this phenomenon increase the price of commodities further into the future while equities lag (while bonds get a chinese torture) as the trampoline effect on stocks fades and as the increase in circulation make the value of financial assets shrink in relation to hard assets.



Fri, 09/21/2012 - 16:33 | 2819217 SmoothCoolSmoke
SmoothCoolSmoke's picture

I think stocks are finally gonna fall.  When Brian Williams and NPR are both blabbing on about how great the Stock Market has been/is..... look out below.

Fri, 09/21/2012 - 16:56 | 2819285 WhiteNight123129
WhiteNight123129's picture

They will not fall into precipe (deflation scare removed), they will go sideways for yeaaaars...

Fri, 09/21/2012 - 17:03 | 2819298 samcontrol
samcontrol's picture

awesome! fits my tactic perfect.

buy mega cap dividend players with conservative covered calls , market goes nowhere for ten years , that makes. 10 a year.
of course some gold , silver, reits , beans and all that shit.

Fri, 09/21/2012 - 18:25 | 2819445 WhiteNight123129
WhiteNight123129's picture

Be careful with reits, they depend on the long bond curve. It will steepen progressively, and in the end remember the value of real estate when rates were at very high yield back in 1980s. A plantation which owns land and pays 5% DVD is like super-charged Gold, there is a real imbalance of supply demand, so plantations reprice the increase in circulation perfectly. The yield curve steepening has little impact on land because for centuries has been a fixed multiple of the current value of the crop 20 times in XVIII century in UK. The crop value in nominal dollars goes up, the dollar value of the land follows AND you get a dividend. This is Gold on steroids...

In countries like Brazil, the land lease is not denominated in money but in bags of soy beans of bags of Corn and hte value of land is the quantity of bags per hectare, I guess you get the picture... you just put the nominal price per bag and you get the transaction value.



Sat, 09/22/2012 - 14:28 | 2820637 Grand Supercycle
Grand Supercycle's picture

Due to recent central bank intervention and short covering spikes, all these daily charts are extremely overextended & a significant correction is expected very soon ~ SPX,DOW, NZDUSD, GBPUSD, AUDUSD, COPPER, CRUDE, GOLD, SILVER.



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