NASDAQ 10k

Retail Goes FOMO

Not really sure why the nominal levels are so euphoric for human traders, nonetheless the Nasdaq hit the 10k level for the first time ever, here is a CNBC graphic of the moment:

Here is a great graphic showing you the veracity of this massive rebound:

So with all this clear FOMO we can’t help but post Goldman’s chart of the retail sector piling in here in a clear FOMO moment. This is probably the kind of activity that today’s Algo robots have been waiting for, to suck in as many just so they can punish these new found risk taking speculators:

I guess we don’t really need to show you any other fundamentals, but this chart should make it quite clear what the real input is behind all this nominal asset euphoria:

$85+ Trillion in Global Central Bank coordinated baton passing fiat printing presses in maximum overdrive.

Now we know the clear angst that has gripped the global streets under the cloak of a single unified massive movement of racial inequality. However our readers here know the truth, its ECONOMICS always has been and always will be. This modern economy has left many wondering where they fit in, not everyone has a PHD in applied mathematics, so that is why the powers that be continue to push for UBI (Universal Basic Income) because they know the masses are beginning to notice the writing on the wall.

As Magnelibra has said it time and time again, the proof will finally come when these things occur simultaneously:

• The Nasdaq makes new all time highs ✔

• Record high unemployment ✔

• Direct payments (UBI-light) direct from the government ✔

With all this in mind, with all this equity drive to new all time highs, the reality many fear and are facing is better depicted for the majority by this chart:

Another thing Magnelibra has stated for a very long time is since interest rates will forever be pegged to the zero bound, it was clear that the equity markets are the new de-facto savings account of the global top 20%.

So it shouldn’t come as any surprise when you have massive QE liquidity dumps that the markets continue to discount any real economic fundamental negativity.

Why? Because in a QE fiat world where by cumulative coordinated non zero sum, negative WACC, printers keep targeting “M” in the MV =PQ GDP equation, well the plan seems obvious, debt, debt and more debt!

Any naysayers and non-believers be damned!

If we didn’t have enough ammo for the FOMO crowd, look at this little gem, Nikola Corp (NKLA)

• ZERO REVENUE

• $29.7 BLN MARKET CAP

• +707% YTD

If buying bankruptcy stocks wasn’t enough, this soon to be electric truck producer, this should suit your fancy, anyway we thought we would put that on your radar.

With FOMC up this week, we aren’t expecting much although many journalists and media types, the non traders keep using this YCC or Yield Curve Control idea. We aren’t sure what the hell they are talking about, but rest assure this isn’t new. We had Operation Twist in 2011-2012 which bought long dated bonds and sold shorter dated ones flattening the yield curve and so with ZIRP upon us once again, the curve is steepening out as expected by the majority of traders.

So just know that this is nothing new and the bond market has no problem dictating to the Federal Reserve where it believes rates should be!

We leave you with this graphic from @incomeDisparity perfectly depicting where equity investors were and where they are now:

-Magnelibra Econemotions

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