9/6/2018 – Another mixed day with the Dow Jones up 20 points (+0.08%) and the Nasdaq down 72 points (-0.91%)

If you are a well researched bear, you might be wondering,  who the hell is buying this market? 

The answer shouldn’t surprise you.

Stock Buybacks Hit Record $680 Billion In The First Half

From a purely financial point, companies in the S&P 500 that have repurchased shares are expected to see a return on investment of about 6.4% this year, a percentage that falls below the past six rolling five-year periods as measured by Fortuna Advisors, a financial consulting firm that has examined buyback trends going back to 2007.

CEOs, CFOs and Treasurers know all of this, of course, but to them the real goal is simpler: to cash out as soon as possible, while using the company’s balance sheet to soak up any insider sales. If the stock goes up in the process, so much the better.

Gregory Milano, Fortuna’s CEO, summarized it best:  “The majority of capital deployed is going right back to shareholders and not reinvestment in businesses. If that’s the only thing you’re relying on, it’s going to end badly.”

Of course it will, but as we approach an absolutely ridiculous $1 trillion in buybacks – actually the annualized first half buyback total of $678 billion would imply over $1.35 trillion in 2018 buybacks – at least it will end with a bang.

Indeed.

We have discussed this before. It is a well known fact that corporates behave in the exact same fashion as retail investors do. That is, they buy at the top and sell at the bottom.

So, it shouldn’t come as a surprise that they are blowing their debt driven cash stock piles on stock buybacks in the market that is selling at the highest valuation level in its history. In other words, just another red flag that something terrible is just around the corner.

If you would like to find out what happens next in the stock market, in both price and time, based on our mathematical and timing work, please Click Here

9/5/20018 – A mixed day with the Dow Jones up 22 points (+0.09%) and the Nasdaq down 96 points (-1.19%) 

The stock market is behaving, more or less, as it should. If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here

Let’s start with just a few charts. To see the rest, which we highly recommend, please click on the link below.

http://realinvestmentadvice.com/fundamentally-speaking-q2-earnings-review-market-outlook/

If you have studied all of the WTF charts, the conclusion should be rather simple.

“This time is different” bullish war cry of the masses might very well represent the biggest “everything bubble” in human history.

If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here

9/4/2018 – A negative day with the Dow Jones down 12 points (-0.05%) and the Nasdaq down 18 points (-0.23%)

Every time Trump says MAGA I cringe. And not because I don’t want America to be ‘Great Again’, whatever that means, but because Trump’s actions are in direct contradictions to what he is saying.

For instance, Trump’s tax cuts did absolutely nothing to help your average American. The tax cuts went primarily to the corporates who in turn used the proceed for stock buybacks, making the ‘everything bubble’ infinitely bigger and of course, self enrichment.  All while Trillion dollar deficits that will eventually lead to the great American collapse continue to pile up.

This article puts it all in perspective. 

What Just Happened? $30 Trillion to the Richest White Americans Since 2008

Wealth statistics since the recession are provided in the Credit Suisse Global Wealth Databook. A summary of relevant data can be found here.

Post-recession data shows that about $33 trillion went to the richest 10%, who are overwhelmingly millionaires (13 million millionaires, 12.6 million U.S. households!). That nearly doubled the wealth of each member of the richest 10%. Average net worth is now $14 million for each 1% household, and the greater part of a million for even the ‘poorest’ household in the top 10%.

In comparison, average net worth for the poorest half of America decreased from $11,000 to $8,000 since the recession.

There is another description for all of the above.

One giant Ponzi Scheme, a swindle. 

It is unfortunate, but most Americans do not understand that their wealth has been stolen from them and that their economy has been gutted in the process. They will, but that will happen in the midst of the next recession. I wonder if they will blame Putin.

If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here