Source: Michael Ballanger for Streetwise Reports 10/05/2019 Sector expert Michael Ballanger offers his observations on recent market fluctuations. On Wednesday, as the kiddies were upset over a swooning S&P, then trading a paltry 5% from the all-time high of 3,027, I tweeted out this graphic that perfectly describes my cynical view of the paper markets around the world. What prompted me to exercise my artistic flair was that the screams were loudest in the world of social media where the Millennial Horde had leveraged Mommy’s 2018 BMW Roadster convertible in order to trade S&P futures from the long side. “Cut rates!” they type-screamed using CTRL-B,U,I for emphasis; “Do the China Deal, Donald!” as margin calls came flooding into their inboxes. And as surely as the sun rises and gold gets hammered on an NFP Friday, the invisible hand reached out and rescued them with mercurial deft and timely precision. All is now right with the world, and stocks are charging back toward the highs with a 57-point turnaround in the S&P in less than two trading sessions. As I tweeted out [yesterday], it was (and is) laughingly predictable. Now, to underscore the absurdity of this obsession with rising stock markets, take a peak at the next graphic courtesy of Bianco Research. The pink section is all bonds trading at a negative yield, while the green is what would be historically “normal”—you know, a bond that pays the holder that is taking all of the risk a positive return. Is it … Continue reading →