How disconnected are markets from economic reality?
One example: Bad news is good as investors expect more stimuli and liquidity injections.
High unemployment is historically good for stocks. Astonishing pic.twitter.com/839wuwf3ks
— Daniel Lacalle (@dlacalle_IA) January 8, 2021
Melt-up before meltdown?
Over the last 40 years, the only other month my composite US equity valuation score was in the 98th %ile w/ an ISM >60 = Oct ‘87.
Coincidentally, Oct ‘87 ISM was 60.7.
Speculative extremes resemble this period closely.
March could be the mth to watch. pic.twitter.com/IzX0ltjbrH
— Julien Bittel, CFA (@BittelJulien) January 8, 2021
FINLAND CUSTOMS SEIZED 1,981 BITCOINS IN 2016 WHICH WERE VALUED AT $800K, THEY NOW PLAN ON SELLING THEM FOR $75 MILLION – BN
— FXHedge (@Fxhedgers) January 8, 2021
How is this the world we live in? I don't even think this is funny. I think it's pathetic. pic.twitter.com/qTA6TNsvrE
— Demetri Kofinas (@kofinas) January 8, 2021
— jeroen blokland (@jsblokland) January 8, 2021
Still, the other side of the #moat … a Fed-funded Wall Street could care less about Main Street labor force! $10 TRILLION in stimulus in 2 YEARS! TWO!
— Trig (Fed up Conservative) (@trigtrader) January 8, 2021
Fed's Kaplan: “I worry that bond buying has some distorting impact on price discovery, that they encourage excessive risk taking, & excessive risk taking can create excesses & imbalances that can be difficult to deal with in the future.” pic.twitter.com/hnbky2g2Qx
— Sven Henrich (@NorthmanTrader) January 8, 2021
On a fully diluted (accurate) basis, $TSLA, which has < 1% share of global autos, is run by a CEO who can't deny having committed securities fraud & has never generated + cash flow, is valued higher than GDP of all but 15 countries
Almost 2x the GDP of Switzerland
Buy Buy Buy pic.twitter.com/seDiRXtMyj
— luis carruthers (@orthereaboot) January 8, 2021