Listen to me now you malefactors clad in cheap regalia.
The Fed is ending QE in October and the ‘real’ market is suggesting chicanery is at hand. I know some of you like to believe there is an imaginary inflation boogie monster out there, forcing the Fed to raise rates. This isn’t true.
Look at my Raw Commodity Index, ytd.
Now tell me, how do you explain that?
Apparently, all of the money is fleeing the real economy and flooding into chinese burrito stocks? Is that your game plan?
Fair enough. Deflation is part of every economic cycle and eventually these draw downs will benefit corporate balances sheets through input expenses. But it doesn’t happen by happenstance.
Deflation is bearish for stocks. The Fed isn’t acknowledging this and has decided to end QE, regardless. European and American government bond yields are at record lows. Why is that?
These are just a few questions you should ask yourselves before buying YY on margin.