One of the crucial goals of Japan’s economic religion is to stimulate Japan Inc. by boosting exports and curtailing imports. Ha!
That surge in the economy that has been falsely promised for five years in a row and that was supposed to solve all problems and rationalize the sky-high stock prices? The Fed has wiped it from its vision of the future.
The word “gloomier” inconveniently showed up to describe CEOs outlook about sales, employment, and capital expenditures. Yet, these CEOs spend record amounts, not on productive uses such as capital expenditures or hiring more people, but on buying back their own shares.
Even venture capital is worried. ‘The crazier things get, the worse people execute’
Targeted by an every tightening sanction spiral, Russian companies and individuals apparently don’t want to be sitting ducks.
“I don’t want to use the word correction, but we’re in a bit of an adjustment period right now.”
How can our trusty government be so far off the mark? By being systematic and purposeful.
The spike came with no trader buzz. The buying was all electronic and instantaneous. But what if sentiment turns bearish, with algos defaulting to “sell?”
The “Wealth Effect” kicks in. Homes above $15 million are selling like hotcakes.
The ultimate smart money sits on a near-record pile of cash, sells holdings instead of buying, and waits for market swoon.