Listen.. you can cry, moan, complain all you want about the stock market and its record highs... but just because you blame the FED for the relentless upside... doesn't mean you are prohibited from coming along for the ride.
There was one tweet I saw yesterday.. the tweeter, a 'market analyst', tweeted to his 30k+ followers how the FED is wrong. They don't know what they are doing. And their actions are going to lead to a massive stock market crash.
"The FED doesn't know what its doing... they are going to crash the stock market..." states widely followed market 'analyst' who has been unsuccessfully shorting the market since 2010
— UPBOptionMil (@UPBOptionMil) December 2, 2020
And yet this is coming from someone who is a 'market contrarian'... which usually means a stock market bear.
And listen... when this stock market is ready to roll later... I'll be more than happy to join this contrarian for the ride down.
But being short this market because you don't agree with the Central Banks and/or think they are clueless... well... its been the wrong move the last 10+ years.
The move off the March, Pandemic, lows was probably the biggest example of "Don't Fight the FED" we have ever seen.
..and they though the FED was out of tools heading into 2020, 2019, 2018,2017....
my oh my did they think wrong. Never fight a bank that makes the banks banks... if you know what I mean.
The difference between the Financials crisis in 2008 and the pandemic in 2020 is that the financial system was NOT crumbling in 2020. And we went from bailouts in the billions to bailouts in the MULTI TRILLIONS of $$$... with more on the way.
How smart is this market to sniff this out at the lows in March? Smarter than all of us combined, thats how smart...
And guess what. The stock market is always right... and right has been siding with upside...
I've said in so many articles over the last 10 years.. even after the lows in March 2020 when all looked lost... that we'd see new all time record highs. And each time I've been proven right.
Not because I'm smarter than the market. HEck no...
I've been right because the FED continues to do what they've been doing since the lows in March 2009...
Supporting asset prices.
I even said it a few years ago.. that because of the Central Banks and their response.. that the next recession will see stocks move higher not lower... and that is exactly what happened.
I don't know what the long term future holds. But the stock market is saying the future holds higher asset prices.
$7 trillion+ and counting... not even thinking about raising interest rates for years to come... and zero concern about asset bubbles...... put all that data into the biggest computer and what do you think it will tell you this means for asset prices going forward?
— UPBOptionMil (@UPBOptionMil) June 10, 2020
And when the time comes to trade for lower asset prices... you bet I'll be hopping along for the ride with that contrarian twitter analyst'