Monthly Archives: December 2014

2015: Rinse & Repeat

Courtesy of Zerohedge comes this chart showing the disconnect between global equity prices (courtesy of various central bank printing presses) and estimates for growth both in 2014 and now extending out into next year.

This is precisely the kind of dislocation that simply cannot go on indefinitely.

Anybody now buying these all-time highs in various equity markets had better have an escape plan for when this suddenly matters - and that escape plan had better not simply be 'hit the bid'...



I began writing Things That Make You Go Hmmm... in 2009 in an attempt to make sense of what was a seemingly never-ending disconnect between economic reality and the direction being taken by markets.

Back then, we knew that central banks would pump liquidity into the markets but I think it's safe to say that none of us knew the extent to which they would be both forced and willing to extend that lifeline.

Five years on, the disconnects are getting larger by the day and the degree to which markets have become stretched has reached extremes unheard of in modern times. Continue reading