How to Blow $12.2 Billion in No Time Flat

By MN Gordon

Fake Responses

One month ago we asked: What kind of stock market purge is this? Over the last 30 days the stock market’s offered plenty of fake responses. Yet we’re still waiting for a clear answer.

As the party continues, the dance moves of the revelers are becoming ever more ominous. Are they still right in the head? Perhaps a little trepanation is called for to relieve those brain tensions a bit? [PT]

The stock market, like the President, knows the art of ballyhoo. Day after day, stocks behave in shocking and unpredictable ways. They bluster and then recoil with the inconsistent elegance of a President Trump twitter tirade.

Wild multi-hundred-point swings on the Dow Jones Industrial Average (DJIA) have become the norm. Up 300 points one day. Down 300 points the next. Do you hear anything? All we hear from the stock market is a giant racket. There’s much noise being made. But there’s nothing of substance behind it.

Certainly, after a nine year bull market there’s risk of a massive sell off. That much is abundantly clear. Perhaps it could be another 50 percent bloodbath like what happened in 2008-09. But when will the next great panic hit?

Is all this volatility of late coinciding with the actual market top? At this point, the verdict is still out. Remember, market tops are unknown until well after they pass. Market tops are also a process; not a single event. What to make of it?

Just in case you were wondering about the cure proposed above – it has been known for about 5,000 years and reportedly cures almost everything. It drives out demons, fixes chronic migraines, and according to its modern-day practitioners “increases brain blood volume”, which “gives you back the energy you had as a child” and provides you with a “permanent high” to boot. We just wanted to make a little joke, but after looking into the issue more closely, we found out that the above depicted Bart Huges actually triggered a kind of mini-mass psychosis after his auto-trepanation and writing a bizarre manuscript entitled Homo Sapiens Correctus while in prison (he avers he was in jail for “experimental reasons”). A bunch of people who otherwise come across as quite normal (if slightly eccentric) decided to mimic him and drilled holes into their heads as well. The depth of their delusion is nothing short of astonishing – buying stocks at a CAPE of 33 is probably quite rational by comparison (here is a video for those who have the stomach for it; at first it is funny, but on second thought it is sad). [PT]

Two Short-Term Data Points

Any old halfwit can venture an endless supply of guesses as to why the market is doomed for a massive panic attack. What follows is a running list:

Rising interest rates. Diminishing liquidity. A new Fed Chairman. Quantitative tightening. Rate hikes. Trump trade tariffs and a new trade war. A new fighting war. The 115th U.S. Congress. Kim Kardashian. Extreme valuations. A …read more

Source:: Acting Man

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