The Unstoppable Force
Right now, the Coronavirus is not to be taken lightly. From initial coverup to its “relentless march outward”, it has been a thus far unstoppable force.
…a coronavirus that is now on a relentless march outward from Wuhan, throughout the country and across the globe, killing at least 304 people in China and infecting more than 14,380 worldwide.
I usually have fun with global crises and especially the media that amplify the hysteria surrounding them because that is what makes the markets fun, scattering herds vs. a calm and contrary vantage point. But in this case, something just seems different. Or at least it will seem different until conclusive news of a vaccine and distribution network emerges.
The Immovable Object
Jim Cramer thinks that it’s a combination of viral recovery rates and the Democrat shit show last night that is driving stock futures higher…
— Jim Cramer (@jimcramer) February 4, 2020
…but I think it is something more tried, true and constant; the willingness and ability of Central Banks to goose the system at any time they so desire. And that includes our now dovish Federal Reserve.
Amid the cacophony of headlines and rationale about the stock market, the article indicated by the green arrow below notes (as usual you can click the graphic and get all the
hysterics stories if you’d like)…
China’s central bank on Sunday announced measures to cushion the blow expected from the stock selloff, and further stimulus is expected to offset the predicted economic impact of the outbreak.
And that’s the money line, folks!
Markets are not pumping on a would-be triumphant Trump (in the face of the bumbling Democrats). They are not pumping on marginal improvements in virus recovery rates. They are pumping because Central Banks are immovable in their willingness to inflate by any means (and they have used ever more innovative means in the last decade as pioneered by our own Ben Bernanke).
There is a lot of talk about Coronavirus being the trigger to the much needed correction. But what, my friends, if Coronavirus is scary enough to be the trigger to something else? What if it is balls out Central Bank inflation by any means possible as long as the threat is in play? What if it is globally coordinated just as world health organizations are likely to be coordinated against the threat?
Back in Q4 2008 a glorious liquidation of the previous inflation was in progress. I know a few of you were kids then, but for those of us who lived it (I launched a friggin’ newsletter right into the jaws of it on September 28th 2008!) it was exhilarating. But then they went to work. ZIRP, TARP, QEs 1-infinity and so on. These scumbags who centrally control our markets went to work and had their way. Back then the trigger was the natural meltdown of man-made financial excess. This time the trigger is exogenous.
I have been anticipating a bear or at least a strong correction after the bull hysteria blows out. But China’s central planners have stepped in to at least give a gentle reminder of the immovable objects that stand ready to try to prevent it. And thus…
Okay, well Investing.com‘s data feed is obviously having a glitch, but the futures might as well be up over 136 million percent.
Subscribe to NFTRH Premium (monthly at USD $35.00 or a discounted yearly at USD $365.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Follow via Twitter @NFTRHgt or StockTwits.