Sunday, April 24, 2022

The Traders are not Humans that's why the Stocks are on Fire despite the Economic Collapse

The Traders are not Humans that's why the Stocks are on Fire despite the Economic Collapse

The Reason The Stocks are on Fire despite The Economy is Slowing -The Traders are Robots not Humans !! Another stock market all-time high, based on nothing more than massive money printing by the FED, The ECB, and Bank of Japan. With the Fed flooding the market with hundreds of billions of excess liquidity, it's hardly a surprise that every single day is a new all-time high. When this mother of all bubbles finally blows, it will unleash a tsunami of toxic derivative that will send the USA down the pipe. ENJOY THE RIDE DOWN. QE continues pulling forward gains in stocks as a massive economic rebound is being priced in. The only issue is: if the bounce doesn’t materialize – the Fed has created a blowoff top. These crooks have stolen from savers for the last decade, and now they are going to steal from the taxpayer for the next ten years, at least. The investors who think this run higher will never end are going to be the most disappointed. This market will CORRECT eventually, it's just a matter of when ,not if. 2001 and most of 2002 was good for bear shorts. 2008 was a great year for bear shorts. The opportunity of a lifetime is coming soon, to short this Bitch Pig Ponzi Fraud. Two mountain blowoff tops, and now we have Mount Everest forming. Gold is the last and best asset class that's not currently in a bubble. Gold is the last train leaving the station. This whole thing reeks of pre 1929 depression craziness. When this market collapses and people head for the exits, it is going to get very ugly. Welcome to The Atlantis Report. The Coronavirus is paralyzing the real economy, but The Stock Markets continue to fly, hovering over their all-time highs. WHY? The virus is real. The stock market is a hoax. The Stocks are on crack. There are, we believe, four reasons. The main reason is that 66% of the wall street exchanges are now in the hand of Robots And Algorithms, which cannot be taken by emotionality. So while THE CENTRAL BANKS PUT THE EFFECTS OF THE DISEASE INTO THEIR FORECASTS, THE MACHINES BELIEVE THAT THE CRISIS WILL HAVE A TEMPORARY EFFECT. IF THEY are right, then you can SAY GOODBYE TO HUMAN TRADERS ... Here are the four main reasons why the stock markets are snubbing THE EPIDEMIC. We do not know how much the coronavirus epidemic will spread worldwide. Nor how long the emergency will last. Nor how severe will the effect be on the global economy. But we know one thing: the stock exchanges don't seem to care much. Because even before having the answers of science, the stocks have managed to return to historic highs in recent days. There are at least four reasons for this strange reaction, right or wrong. One. The widespread opinion on the markets is that the virus will have only a temporary impact on the economy. Two. Central banks continue to support the market. Three. Investors are over-exposed on the bond market, which now offers reduced returns to the bone, so they will be forced to invest in the stock exchange. Four. Markets are now dominated by algorithms, which have - it will seem trivial - less "emotionality" than human beings. Economy and viruses. The general opinion that turns on the markets is well summarized by Emmanuel Cau, Barclays' head of equity strategy for Europe: «The idea that the impact on the economy will be transitory is widespread among investors. Coronavirus will slow down growth, that's for sure, but it will hardly derail it. Indeed, we believe that much of what is lost in this quarter will be recovered in the following ones. " Just look at Barclays' estimates of GDP growth to understand the concept: before the coronavirus, the British bank forecast, by 2020, global GDP growth of 3.7% in the first quarter ,and 3.2% in the second. Now, however, he estimates a much slimmer first quarter (+ 1.8%) but a much more nourished second quarter (+ 4.2%). And a Reuters poll of 40 economists launches the same message: a brake hit now, an acceleration later. And if the GDP does not derail, even corporate profits should not do it. The estimates on the profits in 2020 of the companies listed on Wall Street have, in fact, fallen from + 9.6% at the beginning of the year to + 8.1%. Only a slight filing, which does not detract from the recovery compared to the 1.7% growth in 2019. Of course, investors know well that they can be wrong. For this reason, everyone, including Barclays, suggests hedging by hedging risks. But the general trend remains positive on the markets. The parachute and the rates Optimism is then determined by the attitude of the central banks. In 2019, globally, 48 of them cut rates. Overall, 88 times for a total of 9 thousand basis points, according to calculations by JP Morgan. In addition, the Central Banks have restarted to print more money. And the US Fed, even without real quantitative easing, has injected 420 billion liquidity into the markets since September. Investors also bet that if the situation worsened, central banks (at least those that still have room for maneuver) could intervene with greater force. In short: the widespread opinion is that, in any case, there is a parachute for the economy and the markets. This reassures a lot. Not only. The ultra-expansive monetary policy created another factor that could support the stock exchanges. Yields on bond markets fell a lot in 2019, but, despite this, fears for the US-China trade war have pushed investors more to bond markets than on the equity ones. «Asset managers are overexposed on bonds - notes Barclays Cau -. With the coronavirus, the shares of the most exposed companies in China have not yet returned to previous levels. This is, therefore, an opportunity to return to the market, obviously with risk coverage ». The algorithm has antibodies, But it is not just a question of liquidity or confidence in central banks. The coronavirus epidemic is a tragic phenomenon that, whether we like it or not, awakens ancestral fears in man. A situation that can trigger the classic irrational reaction, even on markets. Except that, according to Aite Group, in 2019, about 66% of Wall Street exchanges are held by robots (the share is 55% globally). That is, a large part of the operation is managed by software which, excluding the emotionality, may have calmed the price lists. Not only. According to experts, it is plausible that the automatic strategies, often based on the analysis of the historical series, have underweighted (if not even considered) the variable of the coronavirus epidemic. For what reason? Simply because, beyond the difficulty of defining its parameters, it is a new reality. Of course: the empirical proof of this evaluation at present is impossible. Furthermore, the use of neural systems makes robot traders increasingly able to adapt to the reality in real-time. And yet it should be remembered that, even in the period of the risk of military escalation between the US and Iran, many analysts have observed that the stock exchanges have maintained a compounded behavior. Today, as then, the algorithm has rationally invested and limited the emotion of the markets. Time will tell if they saw it right. 2. THE CORONAVIRUS AND THE TOXINS OF UNCERTAINTY. Central banks are well advised to mention Coronavirus in their macroeconomic forecasts, but being very careful from now on. The boomerang effect is around the corner if we already look at the extreme emphasis that the media have given to their speeches. Be careful of the weight of the words. In recent days, several central bankers have illustrated the state of the macroeconomic scenario in public interventions for the coming months: Ignazio Visco in Brescia, Christine Lagarde in Brussels, Jerome Powell in Washington. Each of them dedicated a phrase - no more - to the possibility that Coronavirus could affect economic results during 2020. The multiplicative effect of those sentences through the media mechanism appears relevant. Today we do not have, and we cannot have systematic and robust data, but we only look at the impact on search engines of that phrase compared to the total of the event in which that phrase was pronounced. For Visco, the multiplier was equal to 1.51; for Lagarde, it was 18.3; for Powell, we get to 26.8. Immediate and superficial numbers, which, however, go in the direction indicated by what we are learning in general about monetary policy. On the one hand, the words of central bank governors count more and more; on the other hand, central bankers must be increasingly careful in handling the announcement tool if they want to reduce the risk of having effects that may be both unwanted and unwanted at the same time. Did central bankers do well to start citing Coronavirus? The answer is yes. From an economic point of view, Coronavirus represents an epidemic case, which in turn is a relevant situation of a relatively rare and unpredictable event. The rare event can be correlated with economic variables in two possible directions. Economic variables can be among the multipliers of an epidemic and, in turn, can be influenced by it. In both cases, the primary reason is that the epidemic is linked to the networks of interpersonal relationships. Regarding the causes of an epidemic, a question to which the scientific analysis has tried to answer is whether this event is more correlated with the phases of economic expansion or recession. The answers have so far been opposed. While epidemiological research has highlighted the role of recessions, economic analyzes so far give more weight to the phases of economic expansion, in which exchanges of goods, services, and people are more frequent. When the epidemic is started, the prevention and contrast action, depending on its design, can be more or less effective than the contagion, but also more or less efficient in terms of economic analysis of costs and benefits. Then there is the effect that the epidemic can have on economic dynamics. Interpersonal networks are different in thickness and intensity. Dense and complex networks spread technology, but also epidemics. Economic growth and epidemic risk can be two sides of the same coin. With regard to Coronavirus, at a time when the duration and robustness of the positive phase of the economic cycle are unknown, even only the risk of an epidemic can, in principle, contribute to tip the balance towards recession. Like? The transmission channels are two intertwined: uncertainty and expectations. This is where the role of monetary policy can come into play. Uncertainty is a toxin because it makes any kind of planning more difficult - from consumption to investment. Then the risk of an epidemic should not be underestimated. Central banks must correctly introduce it in their models, and communicate their choices. The New Zealand Central Bank motivated its decision not to change interest rates by explicitly mentioning its belief that it does not currently consider the Coronavirus factor to be macroeconomically relevant. Similarly, the Mexican Central Bank, which reduced rates on Thursday, is (macroeconomic) accounting for the effects of the sargasso algae epidemic that affected some of the country's beaches. In parallel, no public authority - including central banks - should underestimate the link between uncertainty and expectations. All other things being equal, this effect is stronger the more authoritative the institutions, and there is no doubt that in the macroeconomic field, central banks are. Likewise, markets, businesses, and families can be suggestible. The boomerang risk is always lurking. The supply chain breaks, the store shelves are empty, and highwaymen are robbing at gunpoint. I wonder if it will sink in then. Starting to see investing infomercials in the morning, teaching retirees how to play options, etc.. if that's not a flashing red light, it's yellow. It feels like they are setting us up to jerk the rug out from under this market. This is a total fleecing of us working-class folks, and not a single S.O.B. in DC does anything to stop the plunder, and that includes Trump. I will let you in on a little secret. This market is going higher—a LOT HIGHER. As soon as you can admit to yourselves that the stinking bankers run the world, then you can see more clearly. Central bankers are blowing it like madmen like it or not, and yes, it will end in tears like it always does. They have a 260 Trillion global debt bomb that the ONLY thing left to try and do keep trying to outrun it. With what? Why more debt, of course, its the only thing they have. Is it insanity? Absolutely. The alternative is to stop and let it blow up now. Not a politician of central banker alive that will make that happen and be blamed for all of it. Its the great wealth transfer they always pull after blowing gigantic bubbles and baiting you in. Prediction #2. You're going to start hearing less and less about the novel virus. I would not doubt if they even ban everyone from talking about it. THEY WILL print us to Venezuela; BE SURE OF THAT !! IN NOT TO DISTANT FUTURE WE WILL SEE DOW AN DAX AT WEIMAR-REPUBLIC-LEVELS. REPO RUNS SINCE SEPTEMBER 17 2019 on a daily basis! The Venezuelan stock market is the same. A common result of hyperinflation through unlimited money-printing and currency debasement. Trump's solution? Lower interest rates. Yea that'll fix it! Fix it good! This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.

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“Control oil and you control nations; control food and you control the people.” Henry Kissinger

once a standing army is established, in any country, the people lose their liberty.”
George Mason

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“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
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The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
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