Friday's Market Run Up Was A Trap

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by quoth the raven
Saturday, Oct 22, 2022 - 14:09

Submitted by QTR's Fringe Finance

Markets whipsawed higher on Friday on news that the Fed could be considering a pivot after its next scheduled rate hikes to end 2022.

I’m not so certain that it’s time to dive back into equities and will be writing about why, to my subscribers, in the upcoming week.

Meanwhile, this past week, Fringe Finance had some incredible content that I wanted to share with you. But first, if you’re not yet a subscriber, here’s an incredible deal:

🔥 Get 70% off for life: Use this link to get 70% off an annual subscription (works out to $3.50/month for the year) for as long as you wish to remain a subscriber: Get 70% off forever

And here’s what we discussed on the blog this week.

It's This Simple: "Higher Interest Rates Blow Up The System"

Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week, with his updated take on the monetary miasma spreading across the globe.

In Part 2 of his letter, he explains how the raise in rates will eventually blow up the system via a “debt doom loop”. It's This Simple: "Higher Interest Rates Blow Up The System"

Cracks In The World Economy Are Starting To Show

In Part 1 of his letter, Larry discusses what cracks in the world economy he is seeing and talks about how the globe isn’t going to be able to handle the forthcoming sovereign debt crisis.

Cracks In The World Economy Are Starting To Show

10 Year Could Be On Its Way To 5.3%: Kenny Polcari

On Friday, 38 year market veteran Kenny Polcari chimed in with his take as to how rates could eventually make their way to well over 5%. Kenny thinks the Fed hiking isn’t going to stop anytime soon and - well, you know what happens if that’s the case. 10 Year Could Be On Its Way To 5.3%: Kenny Polcari

"An Avalanche In Motion": Rate Hikes Will "Blow Up The Treasury"

Interestingly enough, one of my other favorite fund managers, Harris Kupperman, also wrote in his letter earlier this week about why he thinks rate hikes will “blow up the treasury”. His latest is available here in this post: "An Avalanche In Motion": Rate Hikes Will "Blow Up The Treasury"

Bitcoin Going To $2 Million In The Next 5 Years

Late last week I had a great chat with Larry on my podcast, as well. asked Larry about recent criticisms of us being Austrian economists and sometimes being referred to as “doomsday sayers” or “permabears”. Larry also opined about the “debt doom” that is taking place globally. We also tried to gauge exactly how overvalued the stock market is now and discussed discussed what sectors we both think are still underpriced. Finally, he told me why he thinks bitcoin is going to $2 million. Bitcoin Going To $2 Million In The Next 5 Years: Lawrence Lepard

Also, In Case You Missed It…

Last week, I released Mark Spiegel’s latest, in which he explains why he thinks markets have continued downside and where he reveals a new long position, in addition to opining on his legacy longs and explaining why he believes Tesla’s growth story is “over”. Markets Have More Downside & Tesla's Hypergrowth Story Is Over: Mark Spiegel

I also wrote last week about why Ben Bernanke winning the Nobel Prize was nothing more than a sick joke. As I noted, the man who failed to see the 2008 crisis in advance is being heralded for his "economic research". 14 years later, we are still paying the inflationary & moral hazard cost for his "solutions" - which manifested this morning, yet again, in an 8.2% CPI print. Ben Bernanke Winning The Nobel Prize In Economics Is A Sick Joke

Two weeks ago, I wrote about the “Illusion of Safety” - why I think “dip buying” may still be a terrible idea with stocks at these levels. The Illusion Of Safety

Also earlier this month, my friend and real estate expert Kira Mason took the reins, talking about how quickly and drastically the housing market has shifted.

“Though I’ve watched the Philadelphia housing market mirror national trends by slowing from a sprint to a trot to a crawl over the course of the last six months, nothing could have prepared me for the suddenness of this most recent shift,” she wrote.

You can read her analysis of the real estate world here: "Change Is Afoot": Home Buyers "Shocked" By Rates, Sellers Lament Price Plunges

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