Weakening Earnings, Slowing Manufacturing, No Trade Deal = Record Equities

[bucket]

U.S. manufacturing ISM index for December just released showing the 5th straight month of declines and the slowest U.S. manufacturing reading since June 2009. U.S. companies are now clearly in-contraction mode. U.S. Dec job creation reported today posted at 145,000 jobs vs est @ 160,000 jobs.

Meantime, back at the ranch . . . Fed money printing (QE4) propelling U.S. stock markets to historic record-breaking highs on a daily basis into 2020 . . . no stopping this bull as full-blown central bank manipulation in-play. The Dow Jones now threatening to break above an amazing 29,000 points . . . . Analyst talk of a 32,000 point Dow.

go figure . . . .

Is this the 1929 run-up all over again?????

That history always refers to?

[sk_wheatking]

It is also strange that the fall of the Loonie was predicted, yet it is rallying.

I know, I cant figure that one out either. We should be at 65 cent dollar in all reality but our dollar gets stronger every week!

[macdon02]

I know, I cant figure that one out either. We should be at 65 cent dollar in all reality but our dollar gets stronger every week!

We are riding on coat tails. The run up in crude and the fact our rates haven't gone negative, yet.

[MBgrower]

Is this the 1929 run-up all over again?????

That history always refers to?

its been a fun ride up, the question is when to get out? Is 2020 the year to cash out and move out of equities? That is my plan, at least for now.

[biglentil]

Politicians are pushing for lower rates to continue to drive the-flock toward equities that provides the ongoing artificial lift to already high corporate valuations. But a serious side issue that may come to haunt us all is; the-flock is piling into riskier and riskier investments.

And lower rates are also driving the current deflationary wave in markets (IMO). Cheap money promotes a higher debt load. And more debt is a direct enemy to inflation. You need less debt to kickstart inflation and allow rates to rise.

This current financial situation is simply unsustainable (IMO). The system could implode and then the finger pointing begins in-earnest . . . .

Lower rates causes deflation now? Thats a new one. I guess in an upside down financial system anything can make sense.

[sumdumguy]

They’ll have to rewrite the Macro texts cause the graphs are backwards. 🤔

[errolanderson]

Apparently, the Fed just hit the STOP BUTTON on their money printing presses. ‘Market manipulation’ may now have to meet ‘economic reality’ face-to-face very soon. Fed suddenly lowered their balance sheet . . .

Get your popcorn, then strap-in . . . this may be interesting.

[agstar77]

Trump only has to keep the bubble from bursting till November.

[bucket]

Apparently, the Fed just hit the STOP BUTTON on their money printing presses. ‘Market manipulation’ may now have to meet ‘economic reality’ face-to-face very soon. Fed suddenly lowered their balance sheet . . .

Get your popcorn, then strap-in . . . this may be interesting.

And who do you think will be hurt the worst.....do you think Bill Gates or Warren Buffet give a shit about the people that will be hurt by everyone facing the hard times coming...

Who do you think worked their asses off to make those guy's companies successful....the average guy that goes to work everyday to earn enough to buy food and a roof...enjoys watching their kids grow....

So the best I get out of your downer posts ....is to kick the average hard working joe in the nuts and wishing for it ...

[errolanderson]

And who do you think will be hurt the worst.....do you think Bill Gates or Warren Buffet give a shit about the people that will be hurt by everyone facing the hard times coming...

Who do you think worked their asses off to make those guy's companies successful....the average guy that goes to work everyday to earn enough to buy food and a roof...enjoys watching their kids grow....

So the best I get out of your downer posts ....is to kick the average hard working joe in the nuts and wishing for it ...

My apologies for offending you bucket with my downer posts. Economic reality is a tough pill to swallow by the general public, but nothing will change the outcome . . . even my posts.

[bucket]

My apologies for offending you bucket with my downer posts. Economic reality is a tough pill to swallow by the general public, but nothing will change the outcome . . . even my posts.

You don't offend me and neither do your posts...its a conversation....I am a little blunt....but the question remains...

Who gets hurt the worst by an economic downturn?????

[TechAnalyst]

Ignoring dangers only makes them more dangerous, it doesn’t make them go away.

There are far too many fundamental and technical warning signs of significant trouble ahead for the stock market to get into in this forum but the risks appear to be very real.

No matter how you take Errol’s posts, he is trying to make you ask yourselves the tough questions.

Am I young enough that a 50% plus loss in stock market values like that seen just over a decade ago won’t matter because I can wait for a recovery? Or am I close enough to needing those investment proceeds for retirement that it would be devastating? After such a good run, should I get more defensive in my portfolio allocation or simply take some profits and do something safe with the cash? Should I at least carry some protection in the form of put options? These are the type of discussions that the warnings should prompt.

Food for thought….