Peter Boockvar Warns The Fantasy Is Over And The Endgame Is Now Upon Us
KingWorldNews.com
January 05, 2016
With a volatile opening to global markets to kickoff the year, today King World News is pleased to share a major warning from Peter Boockvar as well as Bill Fleckenstein’s outstanding second wrap of 2016!
By Bill Fleckenstein President Of Fleckenstein Capital
January 5 (King World News) – I was curious to see if last night the Chinese authorities would be able to pull enough levers to get their stock markets to rally, but they were unsuccessful, as equities there were modestly weaker. After the close in China they announced some additional liquidity injections into the banking system and it now looks as though a prior ban on sales by major shareholders, which was due to expire in a few days, may be extended…
Bill Fleckenstein continues: China is a good example of a market not doing what the authorities want, which historically has happened quite regularly, but has been more of a rare event in the aggressive interventionist central bank era that we have been experiencing for the last 15 to 20 years.
Number Two With a Bullet
Of course, the reason China matters is because it is the world’s second-largest economy and what happens to its economy and market will have knock-on effects elsewhere, but it is not the sole reason for the selloff yesterday nor the one we had in August. Stock bulls and pundits here in the U.S. like to blame every decline on literally anything except the fact that the market here might want to decline (for a myriad of reasons). Though the effects of easy money drove stock prices to the moon, there is a huge component of the investing population that thinks those prices were a natural response to improving economic conditions, rather than a reaction to misallocated capital precipitated by crazy central bank policies.
The Rest…HERE
