Market Updates

With the market suddenly struggling here, what’s more likely: a roll-over or a resumption of the rally?

John Rubino joins us this week to discuss the implications of the massive price bubble the Fed continues to blow in stocks and bonds.

His command of history shows that what’s happening today has plenty of historical precedent, and always ends in painful currency crisis and social revolt against the ruling elite.

Will this time be any different?

For weeks now, we’ve been warning that the ongoing melt-up in the markets isn’t sustainable. The higher it shoots, the more painful the inevitable correction will be.

Well, yesterday (Thursday, June 11) was certainly painful…

Mess with the bull and you get the horns…

That’s the continued lesson this uber-distorted market is beating into investors: Don’t doubt the rally; it will never end.

Which is why now is one of the most trying and trecherous times in history for investors.

As the market continues to seek out its maximum stupid price limit, it’s now decision time for investors.

If you’re still long stocks and bonds at this point: Do you now sell to protect your gains?

If you’re skeptical of today’s prices and sitting in cash: Is now the right time to start shorting the market?

If you’ve recently been laid off: Do any of the new options offered by the CARES Act that enable you to access retirement funds without penalty make sense for you?

With markets this overextended, your window of time to take action will likely be quite brief.

Last week’s observed bearish engulfing has so far proved a non-event as the markets continue to reach maximum stupid heights lifted by Jerome Powell’s recent soothing remarks to the nation on 60 Minutes.

The trouble is, so much of what Powell said in that interview just isn’t true.

Since rebounding sharply from the March lows, the markets have re-entered a manic melt-up phase where no news is so terrible it can’t send prices higher.

The disconnect between the accelerating economic damage caused by covid-19 and the reckless exuberance seen in the stock and bond markets is crazy-making at this point.

Prices have been steadily marching upwards in defiance of the ugly data. And in Big Tech, companies are now more overvalued than they were before the pandemic hit.

How, pray tell, can you even pretend to justify these companies trading near the same prices as they did three months ago — after 30 million Americans have been laid off, GDP is contracting the largest rate in history, and household and corporate budgets are being slashed?