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Post time 2014-5-4 12:18:10 |Display all floors
This post was edited by gork at 2014-5-4 13:50

Bond yields are at an all time low thanks to the corrupt farce of ZIRP. Junk bonds are being bought at ridiculously low yields and here's where a lot of it is being produced:-

87% of the post-recovery net new corp issuance has been used for share buybacks and dividend payments.
- "Weaning The Stock Market Off Casino Capitalism Will Be Anything But Pain-Free"

Below are highlights from a Bloomberg Story detailing the recent surge of leveraged recaps by the big LBO operators. These maneuvers amount to piling more debt on already heavily leveraged companies, but not to fund Capex or new products, technology or process improvements that might give these debt mules an outside chance of survival over time.

No, the freshly borrowed cash from a leveraged recap often does not even leave the closing conference room - it just gets recycled out as a dividend to the LBO sponsors who otherwise hold a tiny sliver of equity at the bottom of the capital structure. This is financial strip-mining pure and simple - and is a by-product of the Fed’s insane repression of interest rates.

- This Is Crazy! Current Leveraged Recap Binge Is Clone Of 2007 Mania

Yes, share indices are at all time highs because they're being fed by the bond bubble. The propaganda rags encourage the sheeple to chase these dividends peddling them as a safe option: To prevent this from happening, investors need to rotate into defensive names. Shares in companies with solid balance sheets, and strong cash flow have underperformed the wider market during the past five years. What’s more, since the end of February they have come into their own.

A share in a defensive company provides a steady dividend and stable earnings regardless of the state of the overall stock market. Defensive shares remain stable during the various phases of the stock market cycle.

It’s time to go on the defensive to safeguard those bull market winnings, zionist Daily Telegraphic Nonsense

But in the thieved states of UK and US which depend on funny money such that 70% of GDP is consumption rather than actual production, wages have been squeezed since the Nixon default in 1971 as the graph shows ("Weaning The Stock Market Off Casino Capitalism Will Be Anything But Pain-Free").

The permanent austerity that war criminal Camoron has announced is not in goon & thug spending which continues to increase but on Main Street where a credit crunch is being imposed especially on SMEs that do most of the hiring and the whip is being cracked. Record numbers of pensioners are having to go back to work, having been defrauded of the pensions they were promised by the banksters, goons & thugs. The pump and dump in shares is obviously another avenue of impoverishing the sheeple (whilst hammering the gold price to barely the cost of production).

The purpose of impoverishing the sheeple is to redistribute resources to those who "protect and serve" the goons & thugs of course. It's also why some plods in the UK and US have been flagrantly robbing the sheeple: Maximinus simply declared ALL PRIVATE wealth in the nation belonged to the state to pay the troops (government workers) so that government could retain its power.
- Martin Armstrong Asks "Are We Headed Into Global Fascism?"

This is particularly necessary when the Ponzi scheme (which empires are by definition because they destroy rather than create wealth) based on funny money comes to an end and the sheeple are likely to start building guillotines and gas chambers.
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Post time 2014-5-29 19:50:04 |Display all floors
Bubbles Everywhere

As PIMCO said, everything's in a bubble, except gold.

Yep... the share of companies coming to market with negative earnings reached 74% in early 2014, a level surpassed only in........ drumroll, please........ February 2000.
- Things That May You Go Hmmm... Like Spamazon and Flutter

Zero Hedge also report on the huge stock buy backs funded by debt at zero interest rates which are artificially increasing earnings per share: "Here Is The Mystery, And Completely Indiscriminate, Buyer Of Stocks In The First Quarter". Previously they reported on venture capitalists loading companies up with debt just to pay out a dividend.

This is a huge bubble. Not only are share indices at all time highs with dubious P/E ratios, bonds are at all time highs with the only possibility being a big capital loss.

House prices in the UK are between 7 and 12 times average earnings; another all-time high with some calling it a super-bubble.

Commodities are also at all-time highs with crude oil a factor of 10 higher than its 1999 price of about $10. Gold is "only" up four-fold in that time.

Meanwhile, Italy is now including prostitution and drug-pushing in its GDP figures. Andrew Evans-Pilchard of the zionist Daily Telegraphic Nonsense would approve. As president Xi says, the GDP metric is "man made" which is why the thieved state of Amerika has the worst deficits in all of history, yet claims the World's largest GDP and even has the chutzpah to claim 70% of its P is consumption, whilst China is overwhelmingly the largest consumer of most base metals, soft commodities and concrete and has the largest surpluses in all of history.
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Post time 2014-10-17 15:24:08 |Display all floors
Sell and Sell Now!

The mini-crash this week is typical. The Great Crash of 1929 was deliberately induced by the banksters because they needed to impose a debt deflation. But because shares can be sold back to pay debt, they had to crash the value of the collateral; the shares that had been bought on margin.

The crash didn't happen all at once, the banksters had several attempts to smash the market: - Actually the Great Crash was by no means a one-day affair, despite frequent references to Black Thursday, October 24, and the following week’s Black Tuesday. As early as September 5, stocks were weak in heavy trading, after having moved into new high ground two days earlier. Declines in early October were called a “desirable correction.” The Wall Street Journal, predicting an autumn rally, noted that “some stocks rise, some fall.”

Then, on October 3, stocks suffered their worst pummeling of the year. Margin calls went out; some traders grew apprehensive. But the next day, prices rose again and thereafter seesawed for a fortnight.

The real crunch began on Wednesday, October 23, with what one observer called “a Niagara of liquidation.” Six million shares changed hands. The industrial average fell 21 points. “Tomorrow, the turn will come,” brokers told one another. Prices, they said, had been carried to “unreasonably low” levels.

But the next day, Black Thursday, stocks were dumped in even heavier selling . . . the ticker fell behind more than 5 hours, and finally stopped grinding out quotations at 7:08 p.m.7

- Great Myths of the Great Depression

Repeated small crashes means some suckers buy back in, thinking the shares are cheap (relative to the previous highs). After all, with return-free risk in both bonds and shares, the only retail investors in the shares market are momentum-chasing muppets. Newton was apparently caught out this way, having previously and correctly sold at a profit, realising shares were overpriced. Only with the final huge crash do the banksters put the suckers out of their misery and only then are the shares worth buying. But the suckers, who "know the price of everything and the value of nothing" don't buy after so many false recoveries. As max. Kiester says, the sheeple always buy high and sell low. As Peter Schiff says, the markets are a zero-sum game and without suckers the banksters would only be defrauding one another. This is why THIS occurs: End result, the most shorted names are now unchanged for the third day in a row even as the S&P has been in virtual free fall mode, confirming that paradoxically in this broken market, it is the scariest places that end up being the safest.
- As The Margin Calls Come In, The Most Shorted Stocks Are Doing Just Fine

The retail investors see weak shares and short them. The banksters see this and bid up the prices so that the short sellers are sitting on a loss. Then it's just a matter of waiting.
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Post time 2014-10-17 15:39:37 |Display all floors
The Chinese stock market is going along very well

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Post time 2014-10-21 09:30:14 |Display all floors
Hilarious Technical Analysis Quackery

Last week, the initial sell signal was triggered, but I suggested not taking action at that time because, on a "short-term" basis, the markets were oversold.
- Do I buy or sell?

So their earlier BS selling advice was triggered, so they change it to suggest you SHOULDN'T sell.

And some fresh manure is shovelled: As shown, I am reducing the model by 25% currently and suggesting using the reflex bounce in the markets to underweight portfolios temporarily.

Sell and sell now you suckers!
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Post time 2014-10-23 15:59:28 |Display all floors
Greed Isn't Good; Losing Money is Good!

Here's more propaganda encouraging suckers to hold on to shares despite the recent 10%+ sell off. The shyster makes no mention of fundamentals but offers generic and really, really dumb advice instead. At best, you're supposed to realise it's really dumb and do the opposite.

It's hard to know what to write when the market has one of its periodic bouts of panic and shares drop by 10pc for no apparent reason.
- Why investors should celebrate when shares dive

That "no reason" being that they're in a bubble.

The only advice you can give, which long-term investors won't need telling, is not to sell because sooner or later markets recover.

Yeah, just before a huge crash.

The amount of cash produced in pounds and pence does not change, so if it is used to buy extra shares or funds when the market has just fallen by 10pc, hey presto, you get 10pc more new shares or fund units.

And if you want to buy dog turds, they're cheap too!

You are a long-term investor, so selling is years away.

What, always?

Being a long-term investor, doesn't mean holding onto a dog. If it's over-priced or set to fall further, then sell.

Day traders are suckers who can't possibly predict short term price movements. Day trading only works if you have a strategy where it doesn't matter, such as hedging other bets.
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Post time 2014-11-1 09:38:22 |Display all floors
They Doth Protest So Much It's Freakin' Ridiculous

Dump shares and dump them now. The same goes for corporate bonds. Goon & thug bonds might be supported by the banksters but they're also offering return free risk. The stockpiled money may support asset prices and they may not want to embark on another round of QE, but the poor returns mean there's no point in holding them anyway.

Here's the latest ridiculous propaganda telling you to ignore the water gushing in on the Titanic : Some commentators have pinpointed weak figures from McDonald's as "the truth about US consumer expenditure." This is absurd. The reason McDonald's is in decline is because it's selling ridiculously expensive junk food people are turned off by, with high fixed costs from all its outlets that employ a great many staff. Talk about negative operational gearing and being a long-term short!
- The Big Picture: US earnings confirm "buy the dips" strategy

Tens of millions of Amerikans are on food stamps and striking because they work at MuckDonalds and can't afford the Krappy Meal themselves. Others are in "Hoovervilles" even though they have a job! In Poodleville, war criminal, Camoron, continues to steal from the poor and give to the rich.

All the fundamentals point to a bubble in bonds, shares, real estate and commodities. However, even Alan Greenspan admits gold will be "measurably" higher in the next five years, returning to his official gobbledegook. Instead, it' just been hammered on no news at all, for the end of month 7am BS Time smashdown (it was the 8am BS Time smashdown but the poodle clocks moved back last Sunday).
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