1/ I'm joined by @TgMacro on this @HiddenForcesPod for a discussion about how central bank money-printing has broken our economy, turned the stock market into a casino, and sown the seeds for a political crisis unlike any we've seen in generations. bit.ly/HF_EP142
2/ The episode begins with a clip from what is probably the most epic hype video ever created in the history of stock trading. It's a MUST WATCH.
3/ @stoolpresidente has come to embody not only the recent rip-roaring retracement in equities but the philosophy that the stock market no longer bears any relationship to the real economy:
"It took me a while to figure out that the stock market isn't connected to the economy."
"It took me a while to figure out that the stock market isn't connected to the economy."
4/ "I tell people there are two rules to investing: Stocks only go up, and if you have any problems, see rule No. 1."
In other words, BUY THE FUCKING DIP.
In other words, BUY THE FUCKING DIP.
5/ Extraordinary monetary interventions remain the most important causal factor for explaining this philosophy (what I call "market nihilism")
Whether flows come from passive funds or passive people, what matters is that they're invested indiscriminately. hiddenforces.io/podcasts/marke…
Whether flows come from passive funds or passive people, what matters is that they're invested indiscriminately. hiddenforces.io/podcasts/marke…
6/ In our past episodes w/@profplum99, we've explored the role of systematic passive investment strategies in driving markets higher.
With the recent return of the retail investor, an additional layer of passivity has been added.
hiddenforces.io/podcasts/mike-…
With the recent return of the retail investor, an additional layer of passivity has been added.
hiddenforces.io/podcasts/mike-…
7/ Not only are these investors seemingly price inelastic, but they also exhibit a disturbing level of indifference to fundamentals that makes them qualitatively different from their predecessors. Unlike the Gen X & Boomer cohorts of the 90's who felt they could see a future ...
8/ ... that others could not, this generation seems to believe it has figured out something more fundamental. In its view, the notion that the stock market has any relationship to economic reality is laughable. Fundamentals can’t hold a candle to Jay Powell and his money printer.
9/ For premium @HiddenForcesPod subscribers, the rundown to this episode is PHENOMENAL.
It's my attempt to explain what I think we're seeing and how the same forces driving markets higher are sowing the seeds for a political crisis.
It's my attempt to explain what I think we're seeing and how the same forces driving markets higher are sowing the seeds for a political crisis.
10/ If you are new to Hidden Forces, we do not take sponsors. Our content is 100% listeners funded.
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patreon.com/hiddenforces
If you want to support the show and gain access to our episode overtimes, transcripts & rundowns, you can do that through our patreon page.
patreon.com/hiddenforces
