Via Finanz und Wirtschaft's Christoph Gisiger,
James Bianco, president of Bianco Research, expects more turmoil to come and warns that there will be no easy way out of zero interest rate policy.
Submitted by StealthFlation Guest Contributor, Clint Siegner – Money Metals Exchange
Submitted by Bill Bonner of Bonner & Partners (annotated by Acting-Man's Pater Tenebrarum),
Market Mythology
Twice in the last 15 years, markets have tried to correct the mistakes and excesses of the Bubble Epoch.
Business cycle trumps central planning again.
Each time, the Fed came back with even more mistakes and excesses. Trillions in new credit... lower lending rates... easier terms... ZIRP... QE... and the Twist!
Unlike Goldman's cross asset strategists, whose six Top Trade recommendations for 2016 have gotten destroyed three weeks into the year, with half of them already stopped out as we showed yesterday, the bank's chief equity strategist David Kostin has been notably more accurate in his predictions, with his conservative 2015 year end target of 2000 on the S&P almost exactly where the stock market ended.
Since then stocks have taken a sharp leg lower, with the S&P dropping as much as 15% from its all time high, half the average post-war recession drawdown.
Submitted by Sandro Rosa and Mark Dittli via Finanz und Wirtschaft,
According to macro strategist Felix Zulauf, founder and president of Zulauf Asset Management and Vicenda Asset Management in Zug, the almost seven-year-old bull market is over. China is to the current cycle what the US housing market was for the Global Financial Crisis in 2008. It will take years to correct the excesses that were built up in China.
Mr. Zulauf, the markets had a terrible start into the new year. Is the almost seven-year old equity bull market over?