Is this a joke?
As we thought, yesterday's volume was very low – it was actually the 2nd lowest day of the year, that didn't stop the Nikkei and the Hang Seng from following us up half a point but Shanghai was flat at 2,008, dropping 10 points from its pumped up open and I'm sorry but you are NUTS to be too bullish in this market when that index is in danger of failing 2,000.
I don't mean not bullish at all – our LTP is still 100% bullish but it's hedged by the STP, which is mostly bearish. Just – BE CAREFUL!!!
Did you catch that news item above? "Shinzo Abe turned to Nobel laureate Robert Shiller to try to
restore a vital ingredient of his economic revolution: optimism." That's the World we're living in now – Central Bankers aren't even ashamed to admit that they manipulate the news and take actions aimed at making you THINK the economy is recovering.
That's based on the old "truism" that, if people are optimistic, the economy will improve but it's FLAWED because consumers no longer have any discretionary income to spend and they don't have any savings and small businesses, who still employ 80% of the workers, don't have any money to spend either.
They have shifted the bulk of the discretionary GDP to the top 0.01% who don't spend it at all but use it to consolidate their empires. All these old economic rules don't apply to an oligarchy – every act of stimulus only serves to make the rich richer and push the rest of the country further into debt. Sure, the rich are in debt too but a guy with $1Bn owes the same $164,000 per family as the guy with $100,000 does.
Not only that, but when you tax the top 0.01% 15-20% but tax the bottom 99.99% 35%, the money just keeps funneling to…
