IT'S THE TALE OF TWO ECONOMIES NOW... DOLLAR DOWN
AND BONDS UP ON RATE CUT HYPE...
AMAZINGLY, WE HAVE TO TOTALLY SEPERATE NARRATIVES ABOUT WHAT'S REALLY HAPPENING...
AND WALL STREET CAN PICK AND CHOOSE WHICH NARRATIVE IT WANTS TO SUPPORT THE RALLY DU JOUR! OR THE DECLINE OF THE MOMENT.
NET-NET THIS IS A COLLAPSE SCENARIO HOWEVER... AT MAJOR INFLEXION POINTS THERE ARE ALWAYS CONFLICTING CURRENTS PROVIDED FOR EVERY POSSIBLE OUTCOME...
THIS IS HOW THE DOTCOM BUBBLE ENDED IN 1999...NOT WITH A BANG BUT WITH MASSIVE CONFUSION AND A SLOW MOVEMENT TOWARD THE INEVITABLE...
TWO STEPS FORWARD...WHICH ARE HYPED IN THE PRESS...AND THREE STEPS BACK WHICH ARE USUALLY VERY QUICK AND IGNORED BY THE MEDIA...
RESULT: YOUR PORTFOLIO HAS A 30% DECLINE AT THE END OF THE QUARTER...AND YOU CAN'T REALLY PIN POINT WHERE OR HOW IT HAPPEN.
IN SHORT THE 2000 CRASH REDUX!
