{"id":16764,"date":"2016-01-21T12:31:37","date_gmt":"2016-01-21T17:31:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16764"},"modified":"2016-01-21T12:31:37","modified_gmt":"2016-01-21T17:31:37","slug":"the-sleepwalkers-awaken","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16764","title":{"rendered":"The Sleepwalkers Awaken"},"content":{"rendered":"
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The Sleepwalkers Awaken<\/a><\/h3>\n<\/header>\n
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A\u00a0host on bubblevision this afternoon noted that the S&P 500 is now down $2 trillion for the year and wondered if his panel could explain \u201cwhat\u2019s happened since January 1st?\u201d<\/p>\n

The implication, of course, was\u00a0that since\u00a0no new recessions have started\u2014- nor\u00a0have any new wars been declared, polar glaciers melted\u00a0or Wall Street banks gone down for the count\u2014\u2014that the market\u2019s worst ever start of the year was surely\u00a0overdone. Maybe it was even BTFD time again.<\/p>\n

Then again,\u00a0maybe the outlook is just as bad as it was before January 1st, but that the outlookers have\u00a0acquired a\u00a0new outlook. Stated more baldly,\u00a0perhaps the sleepwalkers have finally\u00a0awakened.<\/p>\n

That would certainly\u00a0seem to be the case with the market\u2019s high flyers. Most of this year\u2019s spectacular\u00a0flameouts have reported nothing new nor issued any disturbing 8-Ks. Amazon apparently had a swell Christmas, for example,\u00a0but its share price is\u00a0now down 19% from the bubblevision man\u2019s line of demarcation.<\/p>\n

Indeed, Amazon and its fellow FANGs\u00a0(Facebook, Amazon, Netflix and Google) succinctly\u00a0explain the pivot. They have\u00a0actually been the canary in the coal mine all along; it just now that their warnings signals are being noticed.<\/p>\n

As we have\u00a0previously pointed out, the FANGs were the \u201cbeard\u201d that hid the market\u2019s initial breakdown\u00a0during 2015. They gained $485 billion of market cap (+66%) while the other 496 companies in the S&P 500 actually deflated by more than half a trillion dollars.<\/p>\n

Needless to say, that happened before the calendar year turned. Yet\u00a0when the stock market\u2019s advance drastically narrows to just a handful of ultra-momentum stocks, the bull\u2019s days are numbered, and always have been.<\/p>\n

That truth goes back to the Four Horsemen of the tech bubble, the Nifty Fifty of the early 1970s and even the pyramided investment trusts of 1929.<\/p>\n

Just call this the Last Stocks Standing (LSS) syndrome.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Sleepwalkers Awaken A\u00a0host on bubblevision this afternoon noted that the S&P 500 is now down $2 trillion for the year and wondered if his panel could explain \u201cwhat\u2019s happened since January 1st?\u201d The implication, of course, was\u00a0that since\u00a0no new recessions have started\u2014- nor\u00a0have any new wars been declared, polar glaciers melted\u00a0or Wall Street banks […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[977,11870,5979,2120,1493,11871,378,11613,1669],"class_list":["post-16764","post","type-post","status-publish","format-standard","hentry","category-economics","tag-amazon","tag-btfd","tag-contracorner","tag-david-stockman","tag-facebook","tag-fangs","tag-google","tag-netflix","tag-wall-street-banks"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16764"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16764\/revisions"}],"predecessor-version":[{"id":16765,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16764\/revisions\/16765"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}