Tuesday, July 29, 2014

Very little news, very much sarcasm


GDXJ looks like it might be failing back down, or maybe not. Who knows. Like I said, I'll bother playing when it re-establishes some sort of trend.

In the meantime, here's some news:


Bespoke - consumer confidence surges. So that's a great reason to sell US equities, right? Cos we're at a top, right?


Ritholtz - on the narcissistic arguments of permadoomers. Here's one example that should be familiar to certain people around here:
CLA: “The market is wildly overvalued. This will end in a crash.”

To which our RP responds, Can we really have a bubble when so many people are calling for a crash? Is that likely?

CLA: “Look at Shiller’s cyclically adjusted price-earnings ratio -- it's wildly overvalued.”

But, as our RP observes, this ratio is going to rise for the next few years during the rebound from the earnings crash of 2008. Besides, the CAPE shows the market has been overvalued for most of the past 15 years. What about other measures of valuation that show markets are fairly valued?

CLA: “They are wrong. The Fed is inflating an asset bubble -- it’s the only thing driving stock prices.”

What, our RP says, about the recovery in earnings? They are up more than 150 percent since the lows.

CLA: “It's just because of the Fed's printing presses and share buybacks. Nothing else matters.”

How can one have a reasoned discussion with these folks?
Answer: you can't. If you really care about them you can leave them alone to make bad, really brutally bad, decisions for a few years while you publicly mock their top-calls in your blog, and suggesting that they read news sources who aren't idiotic goldbugs with no economics comprehension whatsoever like the fucking Caseys, Hussman, Shedlock or (omg wtf lol) Max Keiser.

If they have any wits about them they'll clue in eventually. If they have no wits about them they'll lose all their money and go away.

Tough love is the only way sometimes.


NYMag - Hamas may not have kidnapped Israeli teens. Ha ha! This is so funny!

To recap, Hamas kidnapped and killed three Israeli teens, so some Israelis went out and kidnapped and killed a Palestinian teen, while the army killed ten Palestinians and arrested 600 more.

And that pissed off the Palestinians, so they started firing rockets, to which Israel replied by killing 1200 people in Gaza, including 250 children, and leaving a further 200,000 seeking shelter.

But now, hilariously enough, it was all just a big misunderstanding! Ha ha! Oh, it's so nice to be able to just laugh at this whole silly mess now! Ha ha! I bet the Israelis and Palestinians are just pissing themselves with laughter! Ha ha!

Ha ha!


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