Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (46732)	12/15/2021 11:07:21 AM
From: catou1	Respond to of 96843

thank you bull dozer , very interesting, Will explore more after hours.

To: bull_dozer who wrote (46732)	12/15/2021 11:45:35 AM
From: Sun Tzu	2 Recommendations Recommended By ajtj99 catou1 Read Replies (2) \| Respond to of 96843

His main argument is that adjusted for M2, stock markets are down and inflation is up. That is neither a new nor a correct argument. Firstly, yes, everyone knows that the stock market boom has been liquidity driven. This is what I (and many others) have been saying all along - that money, like water, has to find a place to flow into, and that the stock market has been the only place for it to go to, hence the boom. So nothing new there. But to somehow try to take out the effect of QE and divide the index by M2 is wrong on so many levels that I don't even know where to begin. The market is going to be volatile. And tech bubble, and especially the no-profit stocks, are going to continue to drop for a while. But there is lots and lots of cash on the sidelines waiting to find a place to flow into. And once things stabilize, it will. Until there is an international crisis, likely in the form of a currency bomb or hedge fund blow up, the boom will continue, albeit with big volatility and lots of rotation. Longer term, the problem is that there is far more paper assets and paper wealth than there is real assets and real wealth. This does not bode well for the markets overall. But it is not trivial to figure out how to navigate it. May be it will disappear into inflation or wealth tax. Maybe the market will crash. May be it will flow into infrastructure, factory, and other spending and become real wealth. There are many possibilities and they are not all mutually exclusive.