Uncertainty Until Election Day

Well let’s start things off with this juicy chart we saw floating around. This chart outlines and highlights the absolute drubbing value stocks have taken this cycle, here take a look:

What’s strange is that this time around and if you just looked at total return, you wouldn’t think that the SP500 would be up almost 4% and you definitely wouldn’t think that the Nasdaq measured by the QQQ ETF would be up 27%. In fact if you showed someone this chart of “Value” and asked them if they thought the overall market and economy was in the midst of a recession/depression, they would have to answer a resounding yes. Yet, we live in a new world, a new world run by central banks wielding their only weapon of choice, QE or Debt, or Debt or QE. They are the same thing, fiat is debt, period. You can buy all you want when you are a central bank, but you are not buying “value” you are buying “time” plain and simple.

This is what makes portfolio management so damn tough. This is why there is a constant …