/biz/ - Business & Finance

>>19667712

I pointed out yesterday (>>19627589) that people have forgotten that /biz/ made the money-printer meme while stocks were crashing, not while they were going up. It was made because the Fed kept announcing Q. E. to try and stop the collapse, but was failing to have any effect on it. This shows that the Fed does not have omnipotent control over the market, as George Gammon points out. (https://www.youtube.com/watch?v=macsrQQeVO8.).)

>>19637684

Sven Heinrich:

“Look for the S&P 500 to turn positive for the year with a boost from the Fed in the week ahead”

That’s sentiment at the moment and probably the most frustrating aspect of a mania. The most reckless look the most right and the most reasonable the fools for not chasing or trying to fade.

...

Like Druckenmiller I’ve been surprised at the vertical nature of this move, but unlike him I don’t attribute it to the reopening optimism, I attribute it only to one thing: A stock mania created by an overzealous Fed that is trying to save the economy, but in process has created the largest asset bubble of our time, and with that they put in the conditions in place that markets could be faced with another crash. I may well be wrong on this, but the circus like atmosphere in context of historic valuations, optimism and giddiness along with bears crying are exactly the type of conditions that have ended bear market rallies in previous periods of history. To think it’s different this time is to count on it being different this time. Well, in one aspect it already is different this time: The first stock mania inside of a recession. Not discounted far below at all time highs, but rather sitting on top of the largest disconnect between the economy and the stock market ever. Inside of a recession no less.

https://northmantrader.com/2020/06/08/crash-2/

>>19626434

Do you have data to show the proportion of retail versus institutional investors before the Great Depression? During the Dotcom Bubble? If it was little different from what we're seeing now, the aphorism of the shoe-shine boy still holds. The Robinhood traders are the most contrarian indicator that I've ever witnessed.