The "Big Fat Ugly Bubble" Gets Even Bigger and Uglier.
In this report, I cover the early market action in London on Friday, September 21st, 2018. I look briefly at the precious metals, the stock market, the dollar, the bond market, and the oil price.
My focus today is on the stock market and how the Dow made an all-time high yesterday by breaking the February 2018 high. I point out that when President Trump was campaigning he called the stock market a "Big Fat Ugly Bubble" and that was when the Dow was around 17'000. Now with the Dow approaching 27'000 Mr. Trump has forgotten about the bubble and says the stock market is a reflection of the strength of the economy.
My conclusion is that the stock market could now continue to go even higher but it's not because of the health of the economy but more because of the greed that usually creates financial or stock market bubbles. As for the economy, I note that the only reason the economy is looking healthier is due to the record amount of government deficit spending taking place.
Good morning mario, yes the big fat ugly bubble gets bigger and bigger! until events they create and bring about ties it all to the people and future generations to pay for it! have a great weekend my friend.
Hi Andrew, Have a great weekend too.
Amazing that the stock markets can continue to go up in the face of mostly negative economic news. But I see that there are more holes in the dyke and the Federal Banks have fewer fingers to plug all the holes.
Yes it is likely printing will keep going to support the bubbles like BOJ is doing.