A REALITY RECOGNITION EVENT
I dislike the term crash.
I prefer the term reality recognition event.
The recogniition that your bond or stock is worth so much less than you paid for it.
In these events the market reality price adjusts very qiuickly to the actual real reality price of the stock or bond,
Which happens in this case to be significantly lower.
A FAREWELL TO MEMES IN 2022
It looks like AMC and Gamestop are finanlly being dememed.
AMC stock is an obvious zero.
The apes blew the long short funds out of these stocks but in the process turned them into attractive targets for the activist short sellers.
The stock market is full of ironies like that,
SOME MORE ETF'S NEEDED FOR 2022
Where is an ETF that shorts the Metaverse........
Where is the Metaverse Inverse ETF when you need it???????
How about an ETF that shorts Electric Scooter spacs
It need a catchy name
Ive seen a few drunks ride the scooters after midnight
So how about:"The Midnight Drunks ETF"
SOME BOND ETF'S FOR 2022
TBF TMV TBT TTT
All long bond short ETF's!
INVASION OF THE ELECTRIC SCOOTERS
On another note has your city been invaded by a plague (I think that's the correct plural term) of electric scooters. Mine has and they are littered everywhere. I even had to stop once and remove one from the road to the footpath as it was a traffic hazard.
A very bad business idea indeed.
I remember the share bike craze about 5 years ago that disappeared without a whimper...this will follow the same path.
I note a couple of electric scooter companies, Helbiz and Bird have been spaced (the shares have inevitably gone south).
Their financials are not pretty.....not pretty at all.
THE BOND MARKET IS FAR BEHIND THE CURVE
So the 30 year goes above 2.
It should be trading above 10.
Based on 7% CPI and 3% real return.
The bond market is far behind the actual real reality point.
This is simply the market reality point (i.e.the price) starting to adjust towards the actual real reality point.
Remember the FED's massive intervention in the bond market via QE has been to impede and block this adjustment process.
If the FED does not allow this adjustment process to occur.
Then Bond funds will simply cease to exist.
A TARGET RICH ENVIRONMENT
Both the Chinese and US Governments have created a target rich environment for shorts.
Chinese fraudcaps and Spac crap abound.
And the Fed appears to be getting its monetary lessons from the Turkish central bank.
Hood has gone from 85 down to 17.
When It IPO'd I said it was garbage.
In 2022 the Metaverse meme will be pushed for all its worth.
Which is very little to nothing.
Metaverse ETF's already popping up!!!!!
More rubbish for fools.
THE FED AS SHORT SANTA
When you think about it.....
All the FED's trillions of QE from march 2020 onwards set up a monster stock rally.
This allowed a tsunami of SPAC garbage to be launched in 2020 and 2021.
Setting up wonderful opportunities for the shorts, with shorting SPACS in the last half of 2021.
The SPACS remind me so much of the other Jimbo's "winners of the new world" way back in 2000.
Yes the FED is short santa.
What did Santa give to short sellers this year?
He gave them a bag full of Spacs.
He also has given them some more Chinese fraudstocks.
But he gives them some of those every year.
He also threw in HOOD for free.
It's the financial cyclone bunker built for Wallstreet.
Its where all their speculative capital is hiding out.
Its been constantly enlarged all year as more and more capital has demanded admittance.
Its where they are patiently waiting to take advantage of the financial post apocalyptic distopia being created by the Fed.
They are probably playing pool and listening to some Frank Sinatra.
The Feds Decision
The Fed needs a certain amount of inflation to save the debtors.
It won't stop printing until it has achieved this.
Intelligent investors will go along for the ride.
Like buying indebted oil stocks like Oxy.
Borrowing to buy a house with a 30 year fixed rate mortgage.
Buying a Weimar ETF.
Selling out of bond funds.
I love it when the talking heads get on mainstream financial Media and say the Fed is making a policy mistake.
There is no policy mistake.
Inflation is a deliberate policy decision by the Fed.
A decision to bail out the debtors.
To transfer wealth from the lenders.
There is no mistake.