Friday, August 26, 2016

The Stock Market 2015-2016: 
Ugly Chopfest With An 
Equally Ugly Megaphone
Charles Hugh Smith* sees something fishy about the new all-time highs in the stock market rally of 2016 .. "The casual observer is struck by the market's wild yo-yo'ing since early 2015--rather than trace out a definable uptrend, it's been a chopfest of dizzying declines and furious rallies. This is not characteristic of a powerful Bull market. Rather, it is evidence of a Bull market faltering, eroding and being saved by increasingly outsized and visibly desperate central bank interventions. $180 billion a month of additional stimulus is now required from the major central banks to keep the market afloat. Yet the returns continue to diminish. What we have is a Red Queen's Market. The Red Queen's race refers to running fast just to stay in the same place. In a Red Queen's Market, central banks must continually increase their level of stimulus, intervention, jawboning, etc. just to keep the markets in the same place."
LINK HERE to the analysis

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