Blain’s Morning Porridge – June 10 2020: A Wicked Game “It’s strange what desire will make foolish people do..”
Where do financial markets go from here? Yesterday headlines were screaming US stocks are now positive for the year! Today it’s “Momentum stalls” as markets pause to consider just how high they’ve risen in the face of the US officially being in recession. The speed at which the 40% March crash has been reversed is “unprecedented”.
It’s not real.
We all know the rally and this market do not reflect any meaningful reality. Get used to it. This rally is not about value. It’s about day traders, get-rich-quick scams, FOMO, and, ultimately, who will be left holding the ticking parcel when it goes off…
There are new rules. Learn them. The problem is… the rules will keep changing. And the foundations of the market are also shifting. The solid bedrock of the dollar upon which markets have been founded these last 60 years could even be crumbling as a distracted America’s global leadership credentials are questioned… (I was going to write “Trumped”, but too subtle I thought.)