The rise of ALGO and demise of experts

With utmost respect for all market analyst, economist we have to face the reality that market movement has drastically changed since introduction of Algorithmic trading platforms. Interest in algorithmic  is faster, cheaper, and analyses all data with a huge bias towards headlines. Traditional traders use technical analysis to take advantage …

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Central Bank Big Reset

It’s not every day you hear a major financial institution hint at the possibility of the entire economic system collapsing.

The reason major financial institutions (and the mainstream financial media) shy away from a negative outlook on the economy is out of fear of triggering a kind of “self-fulfilling prophecy.” People stampeding to sell stocks and pull money out of banks could cause a vicious cycle of declines and losses.

And so these institutions tend to be positive, no matter what is really happening. But if a hungry bear is standing behind you in the woods, do you want to be “optimistic” and hope it isn’t there?

Fed’s Liquidity Response Is Too Little Too Late

The globalists and banking elites have been running the “order out of chaos” scam for a long time, centuries in fact. One thing that practice does is make people of otherwise average intelligence appear brilliant. One thing that organized conspiracy does is make a group of highly vulnerable criminals appear omnipotent and untouchable. Ultimately, it’s all about time. The globalists have had lots of time to tune and refine their methods for manipulating the collective psyche of the masses.

Consumer Confidence Falls, Consumer Spending Rise

While consumer confidence has fallen yet again, consumer spending remains high.  In fact, for the third straight month, consumers have been losing confidence in the markets, yet they haven’t curtailed their spending.

Optimism about job prospects and business conditions down the road grow weaker The Conference Board said Tuesday. Its consumer confidence index edged down to 125.9 in October, compared with 126.3 in September. Perceptions about the present situation improved, but future expectations are still volatile, according to a report by PBS.

Global debt is over $250 Trillion

Central banks had thrown money at the market since 2000 and being at it for over twenty years. This time, however, Central Banks are running out of powder, and the debt bubble they helped to create is astronomical, over $250 Trillion. ECB, BOJ, and many other major economies have already fired their last shot with no effect.

What Fed not telling about Repo

Worries are growing over the Fed’s efforts to fix funding issues that are all likely to get much worse. The New York Fed just announced it is increasing its temporary overnight repo operations to $120 billion a day from the current $75 billion. In addition to the repo increase, term repo operations are rising to $45 billion, from $35 billion.

Root cause of current asset buble

It all started in 2000 when Federal Reserve chairman Alan Greenspan; faced four challenges that caused near deflation. The customer CPI in 2001 was 1.5%, the lowest since 1986. The CPI rosed to 2.83% in 2002 but dipped again to 1.88% in 2003. In response, the annualized effective Fed fund rate declined from 6% in Jan 2001 to 1.8%.

QE doesn’t work

In 2008, and the world saw the near-destruction of the banking system and the international monetary policy. The CPI dropped to 0.09% in 2008, even lower than 1.8% that prompted Greenspan to embark on four years of monetary easing

Danger of Narrative Economics

The global stock market gets its cue from over-optimistic narrative news that resulted in a pandemic obsession to push stock market asset price higher at any cost.

Global Economy On Life Support

Global economy is on life support. Worries growing over the Fed’s efforts to fix funding issues that is all likely to get much worse.

Active portfolio management

Active portfolio management is about adjusting investment allocation based on the balance of power between various market macroeconomic forces on a short term and long term basis. When done correctly, it results in a potent and very profitable return, often better the market regardless of the market direction. Here is …

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The New World Economy Manifesto

The elusive global economy will be replaced by a new era of regional economy alliance trigged by the US and China Cold War and weakening European Union caused by Brexit China will accelerate decoupling its reliance on the US to create a self-sustaining economy with the aim to cut further …

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