My Deadline Has Arrived. But There’s Still Hope for All You Bears

Back on June 22, my post ran with the headline, You Have Until July 10 to Prepare for The Collapse – Here’s What to Do.

Since then the S&P 500 has rallied from 2754 to 2794, a gain of 1.1%. It seems like a lot more doesn’t it?  That’s because it dipped a bit early in the period. Since closing just below 2700 on June 28 the SPX has risen a hearty 3.5%. The rally has been relentless, casting a pall over bears, and further cementing the complacency of bulls.

But despite these rallies, I’ve put together a variety of reasons why we probably shouldn’t be losing sleep over it… Although that’s easier said than done!

Reuters and Bloomberg Have It Wrong. The Fed “Bloodletting” Is Still Right On Track…

In the past few weeks there have been a couple of wounded Wall Street donkeys out there braying that the Fed is either about to, or should, slow the pace of interest rate rise, or slow or halt the shrinkage of the Fed’s balance sheet sooner than expected.

You can see an article from Reuters here, and an article from Bloomberg here – both indicating that the Fed may soften its gruesome bloodletting operations.

One question is whether these are semi-official trial balloons emanating from the bowels of the Fed, or just the bleating of wounded animals whose bond portfolios are tilted way too far to the long side, both in terms of positions and duration.

I’d vote for the latter, but I would all stress that it just doesn’t matter.

Why? Because it’s all just a bunch of talk. You know what they say. Money talks and bull___ walks. That’s why I’m debunking this nonsense yet again, right here…

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