Come Wednesday markets get another chance to hear from Mr. Bernanke at the press conference following the June FOMC meeting.
It pains me deeply to consider how many individuals will be hanging on every word, with hopes of reaching their financial / trading / investing goals – all wrapped up in a single man’s remarks. It’s sad really. It’s almost as though the idea of markets actually trading based on the performance of the companies therein – has been completely and totally forgotten. I would even go as far as to suggest there are an entirely new group of “youthful traders” out there that may not know any different! All “fully invested” only on the premise that “Ben’s gonna watch their backs”. Oh my……
What also kills me is the suggestion that this recent “dip” has been manufactured in the media / by the Fed in an attempt to “gauge” the general investors community reaction to the idea of “less stimulus” – talk about a puppet show!
It really is a puppet show! Pull the strings up….see what happens..let the strings down….see what happens. Sick.
I’ll stick with the general “forecast” that with markets still practially at all time highs – there will be no further mention of stimulus on Wednesday..but likely comments suggesting ” we are ready when needed”. How the markets take it at this point – again….perhaps that “final pop” bringing in the last of the retails before giving things a good flush.
I’m gonna play a bounce in USD, but keep things on a tight leash as I remain medium term about as bearish as a gorilla can be. Any strength in over all “risk appetite” in coming days can only be seen as even better areas to continue selling.
Kong – agree with your comments…. sadly it appears those very hard lessons which should have been learned from the last major crash have been forgotten. Human nature continues to amaze me – how quickly a large % of the GP have forgotten. The pain appears to not have been deep enough or again people have forgotten to think for themselves or out -of-the-box.
I am looking forward to the period where we once again return to some normality & hopefully freely traded markets. The market will do its job & find fair value overall – reaching a point where no amount of paper will be able to stop the bleeding.
The flush or reset once this is all said & done will go down in the books as we start a-new, again hopefully with a clean slate & a return to a free market. Many will lose everything & many will walk away like thieves in the night – this constant remains the same as do the laws of the universe.
Although the beginning periods post major & final flush will be somewhat difficult – what lies ahead & gaining back some of the advantage will be most welcome. As we struggle through these final periods relative to investing & the functionality of current market conditions ….. IMHO will be the most difficult times many have tried to make their way through without losing their shirt, pants & THE KITCHEN SINK…. lol…. those positions in the commodity sector while timing their exit will move forward into the new markets – hopefully they will be a little cleaner post complete wash-out & reset!
Great stuff Schmed – as usual.
It would be “just as well” to get this “reset” of the business cycle over and done with – so we can just carry on…for better or for worse ( no difference to me). These macro turns are painful for those indeed looking at the “macro”.
I find it tiring/exhausting myself, and at times question my own ability to soldier on and endure….as opposed to just going and finding something “constructive” to do in the mean time. I enjoy puzzles (this being only one of several I’m currently working on) all be it the one that currently keeps the lights on so….what’s a gorilla to do? Patience….discipline…blah…blah…..damn! Let’s get this “space mining” going! – I’m bored!
In any case….so it goes…so it goes.
Considering how far off the reservation things have gone ( with the global participation from Central Banks, and the massive devaluation of all paper/fiat currencies) I’m hard pressed to envision a time when markets will “ever again” trade freely. I’m fine with it as I only stand to benefit – but looking at things from the perspective of some “youthful newbie” hoping to make good – I wish there where more sunshine n rainbows in my crystal ball, as opposed to the storm clouds n tornados as of late.