As I’ve been explaining over the past few days on the show, things can happen and happen quicker than most realize once the premise of “a deal on stimulus” is rendered moot before election day. Once Friday of last week past, as I warned, the “market” will now have to adjust, and adjust quickly – and here we are.
Precisely 13 days ago I posted the following chart, made my argument, and have let things play out. Below is that chart. To wit:
As of the close of the “markets” today here is the exact same chart only updated with a new notation. I’ll let you spot where it is. Again, to wit:
To some the above may appear inconsequential looking at the current move, but what one needs to fully comprehend is this very important point…
All of the gains, money, however one wants to categorize it, the result is the same: 90%, repeat, that’s ninety percent of all the gains supposedly “banked” by Wall Street has been wiped out.
To put it another way (which I did on the show today) If you are of the financial investor persuasion such as, you make your year based on your bonus calculated at the end of year. If you were banking (and presumably living and relying on) let’s say your $250,000 year end bonus for all the profits you had as recently as two weeks ago – that cool quarter of a “milly” is now worth about $25K. Last time I checked – that’s less than a yearly salary at minimum wages.
But not to worry I was told during these past weeks, because the buzzer banger on the TV told everyone just “Buy, Buy,Buy!” because: The Fed’s got their back.
So far the Fed and Treasury have spent a combined $9,000,000,000,000.00 (that’s 9 Trillion!) to push this “market” to those highs. And yet?
The way this thing is going it appears for all that “free money” that still might not be enough to afford a lousy T-shirt.
Will it continue, will we bounce to new highs, is it another BTFD moment of the year? No one knows, and we’ll just have to wait and see as it progresses. However, I will say this: The entirety of the mainstream business/financial media basically told their audience things like this were behind us.
And here we are, just as I warned.
But what do I know.
© 2020 Mark St.Cyr
Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.