FOMC did another rate hike this week and immediate reactions to that was absolutely nothing burger. What happened the day after got even more interesting as S&P rushed to a new year high and collapsed straight back down. Some said the selloff was due to Bank of Japan’s failure in containing their government bond problems. Some said it is all okay and that the stock market will go straight up from here.
Same old theme continues – as long as there is no external shocks to this very fragile system, it will keep on grinding higher. Those who try to short the overall market over the past few months are the ones who pushed the market higher. They are the ones who need better education in understanding how financial market works – it is all a f*ckery of American football.
Here is an interesting discussion on China’s near term future. All the premises discussed in the video have not taken into account of some basic risk factors that I always emphasis on. For example, if there is a 1% chance of the Three Gorges Dam to collapse any year from now, what is the proper evaluation of Chinese stock market? The answer is at most 50% of the current level.
On the other hand, there are talks of the financial system will be destabilized thanks to central bankers not doing their jobs. Chicken Little’s sky is falling mentality is also not helping if you are an average investor that needs to navigate this tough environment. I do not agree with Tucker’s take mainly because the real problem is not what the Fed is going to do, but what a completely messed up US government will do to the world.
Anyone who pay attention to what Biden has done lately knows that since the US debt ceiling is removed, he has used his executive power to spend like a trillion dollar already. It is something no central bank can do to counter the effect. So welcome to the hyperinflation world.
Here is a video from a “conspiracy theory spreader” on NASA lying about climate science. If you believe what he said is true, or as a minimum, that the environment changes are real and accelerating, the future of the global financial system is already set in stone. I like to give NASA idiots who author these lies credit though because they are trying to do their jobs to lie to the public where things really matters.
By the way, it is now proven scientifically, the planetary alignments of our solar system indeed predict earthquakes and volcano eruptions. If you still think that these alignments do nothing to Earth, you need to seriously update yourself if you consider yourself someone who “believe in science”.
Another busy weekend for me. Have a great weekend all!