Hi DJ, <<keep the spirits up>>
The seesawing battle between the bulls and bears is frustrating because the conclusion is not in sight, and so the correct answer is not known, and for such a long time already. Both sides are getting bloodied, each knowing this is the final battle of the current boomer generation. Wealth nirvana or destitution hell will be the outcome.
The shifting positions of the front line US equity indices seem forever pinned at essentially the beginning of year level, despite the massive FED easing and the tax cut on the one side, and the deteriorating profit of the corporate sector and the exploding balance sheet of J6P on the other.
The secondary battles fought in other equity markets around the global are being won by the bears, energized by more fright, breaching the lines, against less powerful officialdom bulls, and are showing the US authorities the full possible meaning of losing should they fail to give it all. The US officialdom is thus more resolved to win on the home front, at any cost. SE Asia has been set back 20 years. Japan 12 years. Argentina? Not yet know, but not looking good.
The final outcome on these other battlefields will be decided at central battlefront, in the US. The two hard points along the line of bullish defense is private consumption and the USD. The cross-firing machine cannon nests of these two hard points are laying waste to wave after onslaught wave of bear attacks.
The bulls are using psychological warfare propaganda disseminated by CNBC, equity buying financial resources owned by J6P but controlled by the funds, and tax rebates due J6P but also financed by J6P, and low interest rate payable to the thriftier J6P savers. Poor J6P, to be saved by the officialdom even if it cost every dime J6P have, destined to have to work until age 95, then die.
And yet, still the bears charge. For the bulls and bears, natural financial laws are no longer operative, and psychology no longer rational. Profitless and imploding LU can be valued highly still, even as cash rich debt free Cable & Wireless ius valued only for its cash.
For all, wound is hurting, wealth burning, hope draining, vision clouding, conviction weakening, and yet, still, no clear outcome.
In the mean meantime, lies fly, manipulation abound, thievery rampant, and official blind eye deliberate.
What am I reminding myself often to help me navigate this developing financial cataclysm and remain as whole as possible, forever ready to join the fight?
Mao was a clever Chinese guy and he once said something about …
- when the enemy attacks, we retreat
- when the enemy rests, we harass
- when the enemy retreats, we attack
- when the enemy tires, we wipe him out
On those few reminders, he was able to conquer a few hundred million, withstand nuclear threats from two super powers, get all he wanted, right or wrong, and keep it all.
<<I'm starting to get concerned (honest) over YOUR concern>>
… now imagine you are a Japanese living and working in Japan, since 1988. How do you feel?
<<clear skies … blue>>
It is a beautiful day in Hong Kong today, all colored as it should, blue sky, aquamarine water, green foliage, and we will be going to a fishing village on an outlying island for seafood lunch. I will carry my reading (the funnier sections of Barrons and such) for amusement during the journey. I will think about what it all means, what it all comes down to, and what I ought to not do.
There, I feel better already:0)
Chugs, Jay |
