KW: Q. Is it?
Short A: Yes
Long A: The big news just reported is a further expansion of the Federal Reserve into the markets and the private economy. Today’s bazooka is up to “$2.3 Trillion in loans to support the economy.” They will buy >$600bn in loans, $500bn in municiple bonds, $850bn in ‘asset backed’ securities (CLO’s CDo’s, more of the things that blew up in 2008), anything else that has turned to sh.t as Trumps best economy in the world, the ‘free’ market fails again
What is most alarming is just how drunk the global economy is on debt covering up the real risk of stock markets. Perhaps even more alarming is just how stupid it is to see stocks being bought in these times where noone knows how shares will perform in the future and what company earnings will look like. To hear from fund managers how how they are looking for opportunities is like throwing a lead weighted belt to a drowning swimmer but they contine to invest in shares for KiwiSaver funds despite having no knowledge of the future. Nearly all KiwiSaver funds have no exposure to gold.