Authored by Michael Snyder via The Economic Collapse blog,
The only other times in our history when stock prices have been this high relative to earnings, a horrifying stock market crash has always followed.
Blain's Morning Porridge, Submitted by Bill Blain of Mint Partners
Why we should be very nervous about corporate bonds
“Before the fiddlers have fled, before they ask us to pay for the bill and while we still have the chance.…”
It appears the opening of the US equity market is an implicitly bullish event now as USDJPY was kneejerked higher, igniting momentum algos and sending The Dow green... because that's all that matters!
USDJPY...
Nasdaq, Dow, and S&P all green...
Now that those stops have been run - what happens next?
Speaking in at a conference in Tokyo, the head of the Philly Fed, Patrick Harker said that he has penciled in a further rate hike by the Fed at its December meeting on 12-13 December 2017. However, his use of the word “lightly” suggested that there may be a degree of wavering on his part. According to Reuters.
A Federal Reserve official said on Monday he expects to back an interest rate hike next month despite caution over low-inflation, as U.S. central bank policy needs to be positioned to deal with future economic shocks.
The pre-market buyers of last resort, hoping that GE just kitchen-sinked by slashing its dividend by 50%... are in trouble.
Everything was fine until CEO Flannery started speaking...