The stock markets rallied strongly on Friday, after supposedly strong US labor market data. But a closer look reveals that these US labor market data are so wrong (as the responsible authority itself admitted). It would have been better not to have publishing them. Stock markets are now as heavily overbought as they were oversold at the low in March. How long can this parabolic rise go on? Contrary to popular belief, the euphoria and long positioning is immense, making a correction increasingly likely. This week’s focus is on the Fed meeting. How does the Fed justify the moral hazard it has triggered in the markets?
The Dax started today strongly into the trade – but right after it went down. What’s going on? The movement seems to have been triggered by the escalation of the situation in Hong Kong – […]
The Fed is flooding the markets with liquidity, the trade war seems to be over, there is clarity about the Brexit. Now nothing can go wrong. This is the widespread view of the stock markets […]
Prominent sceptics and cautioners such as El Erian and Druckenmiller, who considered the massive stock market rally unsustainable in the face of the collapse of the real economy, have capitulated today. It seems that stock […]