Powell rugged the retail gang, again. Imagine how many people bought in this recent run up of ~19%, when we have seen 24% bear market rallies in 2000/2008 recessions. People have no context of these things. Why would a rich person invest in an environment where the gdp is contracting? ISM index is contracting? Why would they take this market to ATHs when the market is up 100% already in past 2 years? There is game theory in markets, if you think other rich people wont buy this shit, you'll not buy too. Because of this factor alone bear markets and bull markets get so extreme. The fact that people don't get this boggles my mind. On another note, the march run up we had ended at precisely the golden ratio(a psychological level for suckers), so did this latest run up(~4350). I would suggest you to get out of the markets because they will either go sideways or down. Most likely down, as I mentioned in my previous post more elaborately.
Quoting Stanley Druckenmiller : “Once inflation goes above 5%, it has never come back down without the Fed Funds Rate exceeding the CPI” https://twitter.com/WifeyAlpha/status/1558431464617873408?s=20&t=x2Y-luj7lEegmcar7ot04A
Now how many months will it take CPI to get below inflation? And how many months for the above game theory fear to accelerate more rapidly?
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