Stocks crumbled yesterday on familiar excuses.
Covid-19 is posting record cases. Economies are shutting down again. The election is just days away. Hopes for a stimulus deal is a distant memory.. for now.
There remains plenty of excuses to sell in 2020.. and the selling... its getting done. This morning I heard on Bloomberg radio an analysts saying yesterdays decline was the market reacting to the surprise surge in Covid-19 and that it was happening sooner than expected.
So if this surge was going to happen in December yesterdays decline would have been postponed until then?
The market remains a song and dance. Every once in a while the music stops and investors stop dancing.
However when the music comes back on investors dance their ways to new record highs. Perhaps this most recent decline is different. Perhaps Einhorn was right September 2nd is the top. It's over. That's all folks!!
I love a good bear market just as much as the next guy. However calling a top in this market has been a fools errand.
No doubt the rejection on the megaphone is concerning.
It's almost too obvious. Am I blinded by 10+ years of endless Central Bank Support?
I don't think it hurts knowing that the FED is hell bent on supporting asset prices until we get a healthy, sustained dose of inflation. And perhaps will continue supporting asset prices even if inflation ticks into an unhealthy zone.
If everything is a bubble... is it really a bubble?
Anyway.... we are sure to see more sharp price action.
Remember we fell some 9 sessions in a row into the last Presidential election.
And then we embarked upon a massive rally. The short term weakness we are witnessing will likely morph into just another great buying opportunity.
It feels like deja vu saying this, but I think new all time record highs lie ahead. Sure the top may be in... but those calling for stock market tops the last 10+ years have been WRONG... those saying new all time highs are coming... they've been RIGHT.