How to Trade These Twilight Zone Markets

We all remember the Twilight Zone, Rod Sterling’s classic American T.V. franchise back in 1959 in which Sterling invited viewers into a “5th dimension middle ground that lies between the pit of man’s fears and the summit of his knowledge.”... Read more »

What Every Investor Needs to Know About the Bond Markets Right Now

Lately, the markets have been hitting serial new highs. There's simply no denying the melt-up we've recently discussed, or even anticipated many months ago, here.

But it's fundamentals that drive the markets and our trading approaches. And right now, there are massive risks beneath this current wave of complacency and optimism.

How do I know?

Easy. Both the bond market and history are telling us so. In fact, they're screaming.

Let me explain why complacency today is a very dangerous thing, despite the party in stocks which we carefully invited you to join the moment the Fed began printing money again in mid-October.

As ever, I'll be blunt...

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Here Are the “Buy” Signals in a Market Gone Crazy

There's one constant underpinning this market: The Fed. It has literally lost its collective mind (not that I feel sorry for them), like headless chickens running aimlessly around the otherwise impressive façade of the Eccles Building.

My daughter says I write about the Fed too much, but there's no way around it: The Fed is the market now.

We've presented plenty of evidence that this cadre of PhDs is simply making up policy as they go; forever scurrying to keep their Wall Street master smiling.

This experiment, of course, ends badly, but in the near-term we also know that when the Fed is pumping steroids (which is to say slashing rates and printing money at the same time), the markets will go up.

In October, the money printers returned, and I mean big time-which prompted me, the jaded macro bear, to pause my fishing trip out West and scream "Party on! The money printer is back!"

Since then, and right on cue, the markets have been melting up, as my admittedly "exuberant" articles made fairly clear last week - and which we immodestly predicted even earlier in the year.

Why so immodest? Because it's so simple: We knew the Fed, which is nothing more today than Wall Street's harlot, would print money as soon as the market needed it.

Since my autumn fishing trip, we've watched stocks fly higher than my fly rod, posting new gains week after week after week. That's precisely why I told you to buy the S&P and ride the most hated bull market we've ever seen...

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What No One Is Telling You: How IPO Unicorns Are Made

Risky IPOs, overvalued tech unicorns, and a world without recessions are all in vogue these days as investors make the classic bull assumption that tomorrow will always mirror yesterday.

With the Fed sending more steroids into the longest (and most hated) business cycle on record, one can't blame investors for forgetting about bears and dreaming about unicorns.

But more informed investors may want to have a look under the hood of the mutual funds they hold, for there might be a number of unsavory unicorns wreaking havoc on their money.

So shorten your stirrups, it's a nasty ride... Read more »

The Fed Just Gave You a Buy Signal for These Three Securities

Last week, the Fed rolled out the money printers yet again, to engage in a $60 billion monthly bailout of the Treasury market - specifically in the short-duration (six months or less) T-Bill space.

Annualized, this money-printing adds up to another $720 billion in fiat money creation and nosebleed-level deficit financing.

Holy cow... here we go again. Pure desperation mode at the Fed - and a golden opportunity for those who see right through it.

Let's discuss...

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