It is virtually impossible to over-state how badly broken and corrupted the financial markets are owing to three decades of financial repression and monetary central planning at the Fed. Not only have the central banks drastically falsified money market rates, bond prices, the yield curve and risk asset prices, but they have also reduced the day-to-day narrative on Wall Street and in the financial press to little more than talking point gibberish.
In recent weeks, for example, there has been a blizzard of blather on bubblevision about booming profits and the Donald’s art-of-the-deal “progress” on trade negotiations. This is supposed to mean that it’s all clear to again back up the truck and buy-the-dip.
No, not on your life!
The current nose-bleed level of stock prices and valuation multiples is actually a perfect chance to cash-in and get out of Dodge. That’s because the current sell-side narrative is essentially a stupid lie, and one that anybody with even modest adult mental faculties should be able to see through.