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Don’t Look Now, but CEOs Are Getting Out of the Market

There have been some media rumblings – trial balloons, if you will – sent up, all hinting that the Federal Reserve might stop or slow the pace of the “normalization” that’s going to see $50 billion a month come out of the system before it’s done.

That’s going to lead to a market cataclysm – sooner, not later – because there simply won’t be enough precious liquidity in the markets to sustain the kinds of stock prices we’ve seen in the era of quantitative easing.

Liquidity moves markets!

Follow the money. Find the profits! 

Even if the Fed did slow or even halt the pace of systemic withdrawals of cash from the markets, it’s just too late.

We’ve talked about this snowballing disaster of a monetary policy many times before; I’ve been screaming from the mountaintops, showing you recommendations for getting into a protective, cash-heavy stance.

And now, it seems, a certain crowd of big market players is getting wise. They’ve just capped a very busy quarter – a record quarter, in fact – of stock buybacks.

It might not seem like it at first glance, but these buybacks and the sentiment driving them are not only cynical, but also incredibly bearish indicators of things to come…



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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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