Loading ...Anyone who’s telling you that they do not understand the stock market making new highs while the economy is broken isn’t looking at the market when indexed to the Fed’s balance sheet. They’re not thinking of the radical implications of “Project Zimbabwe.”
It simply makes my head hurt that there are investors out there who are shorting equities with a structural view that the economy is a mess. Your only logical exposures are long and very long. There will be a whole lot of volatility along the way (especially during those short periods where the Federal Reserve shrinks their balance sheet), but as long as the government has us on the “Project Zimbabwe” path, the market is going much higher in US Dollar terms. I want to be riding that freight train, not shorting the occasional violent contra-trend moves. Besides, based on the chart above, we actually have some ground to make up as I refuse to believe the past decade was completely wasted.