Posts Tagged ‘the cult of the equity’

WILL THE “CULT OF THE EQUITY” INVESTOR DIE?

WILL THE “CULT OF THE EQUITY” INVESTOR DIE?

Courtesy of The Pragmatic Capitalist 

Portrait of a Kodiak Bear

RBS recently published a dramatic and very bearish research note that described equity investors as “the world’s worst cult”.  While I thought the note was a bit over the top it did raise some interesting and thought provoking topics.  More specifically, they said:

“The big turnover in the US economy will lead to dramatic turns down in valuations we suspect – and may finally destroy the world’s worst cult: the cult of the equity, which has no basis in fact, or history, but yet seems universally accepted.”

The credit crisis is a reflection of our excesses and this is best reflected in the markets.   We have become a society that values those who get rich quick over those who create sustainable and productive businesses.  This is nowhere more apparent than it is in the financial sector which has become the epicenter of the crisis.  Our bloated financial sector steals our best minds and puts them to work doing little of real value while rewarding them excessively.  The excess growth of this industry has coincided with Main Street’s obsession with Wall Street.  While the buy side reaps the rewards of 2 & 20 or 2% funds fees for what is effectively an index fund (sorry mutual fund managers) the sell side reels the small investor in with the myth of becoming the next Warren Buffett.  The result?   What RBS would call the worst cult in history – an economy that has become transfixed with making money by effectively doing nothing.

We have spent more than we have and lived well beyond our means.  We buy every new Apple product, houses because we believe it is a right and not a privilege, and think of debt as a way to keep up with the way of life that God bestowed upon us.  It is not sustainable and this is becoming clear to us all as the economy appears to be in a perpetual stall.  The worst part in all of this is that we have tried with all our might to prop up a sector that has failed us all.  While Main Street struggles Wall Street is back to their old tricks.

banks WILL THE CULT OF THE EQUITY INVESTOR DIE?

As a nation I sometimes wonder if a depression wouldn’t set us straight.  I have often cited the “greatest generation” in this regard.…
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Zero Hedge

Mood Sours After Global Times Says "Tariffs Rollback" Needed For Trade Deal; China Will "Fight Back" If Escalation Seen

Courtesy of ZeroHedge View original post here.

US equity futures started sliding around 6 am est. when a Global Times tweet was published detailing how China wants to work towards a "phase-one" trade deal with the US, but outlined how Washington needed "some tariffs rollback" to complete the deal. Global Times also said if Washington "chooses to raise more #tariffs and escalates trade war, China will fight back and retaliate." 

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Phil's Favorites

Your electronic health data: Understanding the different records, systems and how they connect

 

Your electronic health data: Understanding the different records, systems and how they connect

A partnership between Google and the Ascension hospital network in the United States has raised health data privacy concerns for citizens globally. (Shutterstock)

Courtesy of Tracie Risling, University of Saskatchewan

Many Canadians are not connected to their electronic health information. But this is not because there is a shortage of these records. You likely have multiple digital health files, some you may not be aware of, and many you may not have access to.

There are increasing calls for Canada to create a single co...



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Insider Scoop

10 Stocks To Watch For November 22, 2019

Courtesy of Benzinga

Some of the stocks that may grab investor focus today are:

  • Wall Street expects Foot Locker, Inc. (NYSE: FL) to report quarterly earnings at $1.08 per share on revenue of $1.94 billion before the opening bell. Foot Locker shares gained 1.5% to $42.10 in after-hours trading.
  • Nordstrom, Inc. (NYSE: JWN) reported better-than-expect...


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Digital Currencies

Bitcoin Busts Below $8,000 To One-Month Lows

Courtesy of ZeroHedge View original post here.

Another sea of red across cryptos this morning after tumbling in early European trading (it's been an ugly 7 days as the image below shows)...

Source: Coin360

Bitcoin Cash is leading the decline on the week along with Litecoin...

Source: Bloomberg

But Bictoin's psychological plunge to a $7k handle is most notable...

Source: Bloomberg

...



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Kimble Charting Solutions

Junk Bonds About To Send Stocks A Bearish Message?

Courtesy of Chris Kimble

Are junk bonds about to send stocks an important message? It looks like it from this chart!

Junk Bond ETF (JNK) has created a series of lower highs and lower lows over the past couple of years, inside of falling channel (1). When it broke support in early 2018 at (2), stocks struggled to make much upward progress for the next few months.

The rally off support last year saw JNK hit falling resistance a few months ago and some softness has set in. The small decline of late has it testing a series of higher lows at (3).

What JNK does at (3), looks to sen...



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Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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