During an appearance on CNBC yesterday we referred t0 Wall Street as the Daredevil Market owing to the sheer insouciance of the day traders and robo machines. They are being given every chance to get out of harm’s way at the 11th hour of a failed recovery, yet they keep reflexively buying the dip because “that’s what’s working”.
But buying what’s working is not an investment strategy; it’s an eyes wide shut gamble at the tippy top of the greatest financial bubble in modern history. And it just another proof that honest price discovery has been totally destroyed by the massive monetary intrusions of the Fed and other central banks.
It’s also a gamble that is completely disconnected from reality, history, financial conditions, business cycle fundamentals and a plethora of domestic and global headwinds. In short, the casino has finally taken complete leave of its senses—-as we presumed to explain to the bubble vision audience.