The Zombie Epocalypse: A River of Denial Floods Markets Everywhere
By David Haggith
TheGreatRecession.info
May 4, 2019
The highest summit of irrational exuberance ever, which is not even seen by those engaging in it, establishes the perfect peak for the greatest global economic collapse ever.
Some days the level of denial in the stock market twists my head into a knot — not because I am surprised at lemmings jumping over a cliff because they know all the other lemmings are going to jump. In that case, the jump will pay off because the market IS the crowd, so it goes wherever the crowd goes, and the lemmings are merely betting on where the crowd is heading. I understand that.
The head-twisting knot comes when I endlessly see so many seemingly smart people parrot the same falsehoods in their writing when the self-deception is so obvious. Attempting to break through the mainstream media’s deception about the economy is why I started this blog, but the deception and delusion has become almost entirely accepted delusion.
Today I read a writer who clearly had a solid grasp on how irrational and overvalued the US stock market is right now — that was the whole point of his article — and yet even he wrote the following incongruous statement simply because it is what so many people are saying: (emphasis mine)
“Indeed the stock markets crumbled under that Fed-tightening onslaught, plunging 19.8% over the next 3.1 months into late December 2018. That severe correction was right on the verge of crossing the -20% threshold into new-bear territory.Seeking Alpha
He’s referring to the only index that didn’t fall by 20% as if the S&P 500 represents the entire market. Thus, he speaks of 2018 as a correction that almost became a bear market. Yet, this guy seems to have things well understood in the rest of his article, the general theme of which is about “extreme technicals,[and] sentiment” in a market where “traders’ euphoria and complacency have been running at bull-slaying levels, while valuations remain way up near perilous bubble territory.” He even notes the following:
“All this is happening as corporate profits flatline after surging dramatically. Like after every past waterfall decline, the stock markets are due to roll over and retest their deep late-December lows. Odds are they will fail, confirming a major new bear.
The Rest…HERE
