Looks like the "fertilizer correction" is over. Adding to all 3 of my names on their bounces off support; actually like the Potash (POT) chart the best here, but they all move together.
I love this market. Uncle Ben has apparently created so much money, but none of it goes to people who need it out on Main Street. Instead it is flooding Wall Street pushing up equities (along with commodities) Kind of perverted, but we all thank Uncle Ben as investors, as we curse him at the grocery aisle. $122 oil? No problem. That only affects US consumers - stocks are independent of the "little people".
(X amount of stock) versus (Y amount of money supply x 20% annual growth rate) = prices go up. Economics 101.
Equities are simply another commodity at this point, it appears. Every other commodity is going ballistic, so they must all go up as well as the printing presses work overtime. I guess the current strategy is to simply move money from 1 commodity group to another - after one runs, take profits out, and go to the next one... repeat. Send Ben a thank you letter for destroying currency. Rinse. Wash. Repeat. Watch seniors on Main Street with fixed income crumble. Rinse. Wash. Repeat. Watch stock market speculators giggle with glee. Rinse. Wash. Repeat.
We'll continue to drink Kool Aid until the market shows any signs of recognizing reality. Or perhaps reality in a 20% inflationary environment no longer matters. As I said, with the 20% annual monetary growth rate we have embarked upon, it is going to be very hard to ever see a sustained downturn in the stock market. I mean if stocks were to go down 20% naturally, with 20% more money floating around, it will still be flat net. Just make sure to ask your boss for a 20% raise so that you can "break even" with the money supply.
Socialized markets are so fascinating - I'll get the hang of it sooner or later.
1 comment:
Great Posts. I think you added to POT. What are other 2? Thanks. I'm referring to "Adding to all 3 of my names"
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