CNBC – Politics and Religion

The chart is of the French CAC index, a mirror of the DJIA

It didn’t start out well this morning listening to CNBC. The first words I heard were “sector diversity”. What they mean by that of course are stocks grouped by category like industrials, banking, retail, transportation, etc. All you have to do is look at 100 year charts of the market. 2001 and 2008 being prime examples. There was no protection through diversification, everything crashed. Stocks, bonds, metals. There was no difference growth and value stocks. Large caps and small caps all crashed. There were no safe havens in overseas stocks. Every chart could be laid on top of the other.

Then I realized that every show on CNBC is like every financial show you hear on the radio: they’re all liars. Because they fail to address the 1 issue that matters. With 0 to near 0% interest rates the past 20 years (thus destroying bonds and cash as investment options), the Federal Reserve has removed 2 legs of the investment stool. Because there is no longer any competition for the investment dollar, there is nothing to hold stocks in-check.

Because there is no longer anywhere for money to flee, stocks have gone rogue. No dividends, no innovation and nothing but stock buy-backs benefitting senior management. And because these shows fail to address the ONE issue that matters, everything else they say is bullshit. There has to be competition. It is so basic. So fundamental. But they want to ignore the elephant in the room. You can’t throw out the window the principles of borrowing and lending. That is the basis of all business.

You destroy the most basic principle of business, the relationship between borrower and lender (with 0% interest rates), and you expect everything to work right? On top of this is the preposterous notion that a central bank can set the interest rates more knowledgeably than the market?? That is so ignorant its incomprehensible.

noun

“the quality of being patient, as the bearing of provocation, annoyance, misfortune, or pain, without complaint, loss of temper, irritation, or the like. An ability or willingness to suppress restlessness or annoyance when confronted with delay: to have patience with a slow learner. Quiet, steady perseverance; even-tempered care; diligence: to work with patience”. Dictionary.com

Do you have patience? The ability to put off instant gratification is so important in life. In fact I’ve heard it explained as its the difference between successful people and low-class behavior. Saving for tomorrow. Looking ahead. Not being blindsided. Thinking ahead a little bit saves so much time and money. How many times have I run to the store for something, and forgot an item. Or only bought 1 when I should have bought 3.

Its not just for shopping. Its planning your career. Your retirement. Giving your kids a boost for say a house in their future. Governments don’t think ahead. Less than 5 years after they put in over a half million dollar pedestrian bridge on a bike path, they decided, “Hey! Let’s rip that out and continue the road!” (that within a year they will take out a lane and put in a bike lane)

Part of what I was thinking in all this is because I know what is coming. Having lived through sharp stock market declines in ’73, ’87, ’01 and ’08, I know what is coming this November and the following 6 months. All hell is going to break loose. The reelection of the most hated President in history, the court challenges, the resulting street violence, the attempted coup by the Democrats and RINOs, the appointment of a successor to Ruth Buzzy Ginsburg. A “perfect storm” is coming our way.

What is truly amazing to me is how it will all play out with perfect coordination and synchronicity. Once again, its all about ‘looking ahead’. Finally I am. Forewarned is forearmed. When we get within a week of November 3, pay attention.

As an example, you’ll get no help from CNBC. They are all, “La di da di da! Everything is fine!” As they blather on about Tesla this, Nikola that, Apple something else. The ‘Bullshit-O-Meter’ is off the charts. There’s an orchestrated crash coming in late October / early November, and nobody is talking about it. One morning around that time, about 10:30 in the morning, the market will plummet 10,000 points and they’ll suspend trading for the day.

Then, they’ll have to talk about it! They’ll act all like, “Where’d that come from?” People won’t have been prepped, they won’t be ready to buy, but the professional will. And another fleecing of the flock will have taken place. That’s not quite true. I think this one will go on for several weeks. I can see 50% coming off the market top of 29,100, easy. Would not at all be surprised to see 65%.

I’m just restless and impatient because until then, everything is too high. The market is too high to buy stocks, metals are too high to buy silver. We’re just in a holding pattern until the dam breaks. Talk radio really sucks right now. Radio hosts Armstrong & Getty, who I had thought would replace the morning idiot Jeff Angelo, turn out to be about as dumb. They think its okay that Louisville cops can bust into a house at 1 am and gun down Breonna Taylor.

FOX News is pointless. CNBC as noted is worthless. So ya better like the old movie channel! So until then its “hurry up and wait!”

Tag Archives: CNBC

The one issue that matters

Oh to have patience!

noun