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Curve Reinverts
The Market Bull 2019

 
 
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The Market Bull – August 12, 2019

The major averages begin the week with brutal losses as nothing matters seems to be giving way to everything matters. With the yield curve reinverting in dramatic fashion it would seem that the current bull market days are numbered as the major averages are once again far from their recent highs for the second time in a few months. There is little economic data today, though the week is going to be a busy one.

With the Brexit fiasco lurching towards a conclusion, the vote is still out on exactly what the end will look like. Jefferey Epstein dies in jail but his lurid diaries, associates and infamous “little black book” lives on making more than a few of the rich and powerful extremely uncomfortable I’m sure. Hong Kong descends into chaos as protests escalate and become increasingly violent and confrontational.

Here at home the banksters clamor for more easy money and a restart of Quantitative Easing or QE because they know the party will not continue without it. Indeed the financial engineering of the last several years, zero interest rates, QE, debt funded share buy backs have reached legendary proportions. Pushing market valuations for both financial assets and real estate to clearly unsustainable levels. For those thinking that it will be different this time, it never is. While fundamentals can and will be ignored for far longer than any sane and well-informed person would think is possible. Sooner or later reality reasserts itself with dramatic and punishing consequences.

Standard and Poors 500 Index closed at: 2,883.09 down 35.56
NASDAQ finished the day: 7,863.41 down 95.73
Gold ended trading at: $1,522.30 up $13.80

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