The MARKET is sick.... it is VERY SICK..!!

A REAL MESS

Don’t be fooled by the illusion that The Global Market is well, ...... it is far from being well. 

In fact it is sick, ...... it is very sick..!!

Anyone who has a close eye on The Global Markets will tell you that they are in a mess, a real mess and are very sick..!!

DERIVATIVES

With the advent of DERIVATIVES in the 1980’s Global Financial Markets have transformed from a Market priced on Fundamentals into a Market that is based purely on a risk based GAMBLE..!!

Markets no longer rely on Fundamentals as a way for price discovery but by one that is based on “who’s got the deepest pockets”..!!

Asset prices over the last 30 years have been distorted way beyond true recognition as a result of highly leveraged DERIVATIVES which in essence allows prices to be forced in the opposite direction in order to extract liquidity out of the weakest hand.

True Price Discovery should be based purely on Supply and Demand and not by an artificial priced mechanism that is based on manipulation for short term gains.

LONG RUN

No one benefits in the long run by manipulation. It merely puts off the inevitable that will happen in the end.

The true definition of a “Free Market” is a Market that by its simple definition should be allowed to trade freely without the influence of highly manipulated one-sided bets.

Which other Market allows you to set up an empty store and sell things that you don’t own in the hope that you will be able to buy what you don’t have later to sell before people come to collect..!!

2008 BUMP IN THE ROAD

Global Markets hit a bump in the road in 2008 and was nothing more than THE MARKET reacting to an over leveraged and overzealous build-up of excessive DERIVATIVES.

These DERIVATIVES were a toxic combination of a leveraged bets that simply misread what the “Free Market” could actually stand.

In 2008 it was the decision of the Central Banks to intervene and step in and prop up the shortfall by plugging the Market with Stimulus.

This was a mistake, ...... a big mistake..!!

Plugging the shortfall with garbage money printing did not repair the problem but merely PROVED that the Market was BROKEN..!!

SICK, VERY SICK

2008 was THE MARKET's way of telling the World it was sick, very sick, and instead of caring and nursing it, Central Banks took the easy option and pumped it full of Drugs and Steroids..!!

THE MARKET IS ALWAYS RIGHT

Most people look back at 2008 and assume that this was the worst it would get. Not me. I look back at 2008 and see that this was actually the beginning of a series of Global Market corrections that is set to continually fight against the Manipulation being forced on to THE MARKET.

Investors who have been around for a few  years and have seen many Market Crashes will always tell you that THE MARKET is always right..!!

This is VERY TRUE and is probably more so today than ever before.

SERIOUS TIMES

We are in extraordinary and challenging Global Financial Times and we either hold our hands up and admit that THE MARKET is right and allow it to re-correct itself naturally or continue making a bad situation even WORSE..!!

This is a serious problem, ...... a very serious problem..!!

DEBT

We owe it to future generations to face up to the Global Current DEBT and sort the problems out NOW rather than patch them up and leave it up to them to sort out..!!

Never before in history has a generation made such a selfish and reckless decision to ignore a problem, continue in an indulgence of greed, and then pass it on to the next generation to pay off..!!

As a generation we should be ashamed of ourselves and embarrassed not to have the strength and guts to stand up to our mistakes..!!

SIMPLE CHOICE

We have a simple choice.

We either face up to reality and admit that the Global Financial System simply does not work in its current state, or pass on to future generations an even bigger problem to solve knowing that they will never forgive us..!!

Thanks for reading and please feel free to share.

Stephen