Investors are all-in financial assets at an historic bubble. When the entirety of Wall Street has bought into the popular delusion, you have likely finally reached the peak. Any number of catalysts can prick it. How many of these reports even mentioned war with Iran as a risk? t.co/d2QIDrExB3
— Kevin C. Smith, CFA (@crescatkevin) January 5, 2020
CEO and CFO confidence warned of the bad ISM all along. The overwhelming market hype over a bogus trade deal and Fed easing is typical #FOMO investor hope at the peak of a financial bubble. Corporate management knows what's really going on. The deterioration in the macro is real. t.co/k1xN6dweID
— Kevin C. Smith, CFA (@crescatkevin) January 3, 2020
BBB share of investment grade pic.twitter.com/r8uEuj4V3R
— Win Smart, CFA (@WinfieldSmart) January 4, 2020
7. Mutual fund cash holdings structurally (and cyclically) lower. h/t @sentimentrader $SPX $SPY pic.twitter.com/O9oqiwo4LL
— Callum Thomas (@Callum_Thomas) January 4, 2020
6. Also insiders have been mobilizing — selling heavily into the rally. h/t @BrightramLLC $SPX $SPY pic.twitter.com/f6LwZhQGB1
— Callum Thomas (@Callum_Thomas) January 4, 2020
Translation:
"We've blown a debt-bubble economy that is collapsing.
We are going to double-down (again) using the same failed monetary policy."
Where are the adults?t.co/riOGa8DpxA #fintwit #gold #economy #market #finance #bonds #StockMarket #crypto #btc
— David Jensen (@RealDavidJensen) January 5, 2020
Economic ‘Doom Loops’ Get Harder to Avoid in 2020s
The world’s advanced economies are trying to keep their balance on an unstable platform of high consumption, asset prices and household debt as we enter the 2020s. Any significant shock or increase in volatility could trigger “doom loops” that compromise the economic and financial systems.
Debt will kill the global economy. But it seems no one cares