{"id":54763,"date":"2020-08-21T08:31:41","date_gmt":"2020-08-21T13:31:41","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54763"},"modified":"2020-08-21T08:31:41","modified_gmt":"2020-08-21T13:31:41","slug":"theyve-done-it-again","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54763","title":{"rendered":"They\u2019ve Done It Again"},"content":{"rendered":"
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They\u2019ve Done It Again<\/span><\/a><\/h3>\n
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The stars are back in their courses. The angels are back in the heavens. And the Perfections are back within sight\u2026<\/p>\n

For merely 148 trading days after bottoming\u2026 the S&P returned to record heights today.<\/p>\n

The index closed the day at 3,389 \u2014 eclipsing its February 19 height of 3,386.<\/p>\n

Thus Jerome Powell\u2019s maniacal persistence has yielded a reward truly fantastic. He has successfully reflated the bubble.<\/p>\n

The Federal Reserve has itself become the market.<\/p>\n

Shannon Saccocia, Boston Private\u2019s chief investment officer:<\/p>\n

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Equity markets are reflecting the massive monetary and fiscal stimulus that has been injected over the past four months\u2026 the rationale to diversify away from risk assets is hard to pinpoint.<\/i><\/p>\n<\/blockquote>\n

For many the rationale to diversify away from risk assets is indeed hard to pinpoint\u2026<\/p>\n

No Longer Considered a Bear Market Rally<\/b><\/p>\n

Bank of America has concluded its August Global Fund Manager survey. This survey revealed that:<\/p>\n

The majority of professional investors no longer believe this market spree represents a bear market rally.<\/p>\n

It is as genuine as gold itself, they believe.<\/p>\n

What is more, 31% of those surveyed believe it is \u201cearly cycle\u201d \u2014 the highest percentage since the financial crisis.<\/p>\n

Meantime, Deutsche Bank reports, \u201ccompanies have already restarted buybacks or are considering doing so.\u201d<\/p>\n

Buybacks were of course a primary source of helium for the bubble presently reflating.<\/p>\n

And the Federal Reserve\u2019s artificially depressed rates opened the taps\u2026<\/p>\n

Corporations Take on More Debt Than Ever<\/b><\/p>\n

These exorbitantly low rates enabled corporations to pile on cheap debt.<\/p>\n

With this debt they often purchased their own stock\u2026 which reduced shares outstanding\u2026 and raised the price per share.<\/p>\n

That is, corporations often took on debt to conduct financial sorcery.<\/p>\n

And now \u2014 as Deutsche Bank reports \u2014 the sorcerers are at their tricks again.<\/p>\n<\/div>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

They\u2019ve Done It Again The stars are back in their courses. The angels are back in the heavens. And the Perfections are back within sight\u2026 For merely 148 trading days after bottoming\u2026 the S&P returned to record heights today. The index closed the day at 3,389 \u2014 eclipsing its February 19 height of 3,386. Thus […]<\/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":[15378,124,11023,195,303,1849,431,534,3650],"class_list":["post-54763","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brian-maher","tag-central-banks","tag-daily-reckoning","tag-debt","tag-fed","tag-financial-markets","tag-interest-rates","tag-monetary-policy","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54763","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=54763"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54763\/revisions"}],"predecessor-version":[{"id":54764,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54763\/revisions\/54764"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}