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Sell Easter, Buy the Fourth?


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It is not good what they do. It is too obvious. The unintended consequences could be horrible and at a certain point get completely out of hand.
In Germany the perception of this upmove is - even in mainstream media - that it is only because of CB‘s pumping and gigantomaniac stimulus. An anti-inflationary stance is burned into the collective soul of Germans.

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Cash Is Trash

Central banks will print a lot of money and keep cash interest rates at such low levels that they will have negative real returns and negative returns relative to assets that behave well in times of reflation. When the virus hit and it had its negative impact on earnings and balance sheets, asset values plummeted which made cash look comparatively attractive. However, what did the central banks do? They created a ton more cash to buy debt and push interest rates lower which is having the effect of pushing those assets that will be better suited for the new environment up. When you think about what assets are safe to own, and you think of cash, please remember that while it doesn't move around in value as much as other assets, there is a costly negative return to it in relation to goods and services and other financial assets that amounts to about a couple of percent a year, which adds up. So I still think that cash is trash relative to other alternatives, particularly those that will retain their value or increase their value during reflationary periods (e.g., some gold and some stocks).

 

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1 hour ago, MisFit Kid said:

All that is left is various, larger, and more deliberate forms of fraud.......

now name all those central bank "programs" forward and backwards.....

>: so much for the topic of the day.

Is that the new Sobriety Test for applying for a loan under the CARES act?

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23 minutes ago, jp6 said:

Cash Is Trash

Central banks will print a lot of money and keep cash interest rates at such low levels that they will have negative real returns and negative returns relative to assets that behave well in times of reflation. When the virus hit and it had its negative impact on earnings and balance sheets, asset values plummeted which made cash look comparatively attractive. However, what did the central banks do? They created a ton more cash to buy debt and push interest rates lower which is having the effect of pushing those assets that will be better suited for the new environment up. When you think about what assets are safe to own, and you think of cash, please remember that while it doesn't move around in value as much as other assets, there is a costly negative return to it in relation to goods and services and other financial assets that amounts to about a couple of percent a year, which adds up. So I still think that cash is trash relative to other alternatives, particularly those that will retain their value or increase their value during reflationary periods (e.g., some gold and some stocks).

 

What he said. 

 

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Americans are ADDICTED to stocks, That is the answer to everything what is going on right now. Add to that the 401k‘s. The FED ist just the drug dealer.

Like Jorma said a while ago, there is simply no one who wants lower stock prices for years or a two decade long sideways market. 

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