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AutomaticEarth<>Debt Rattle September 19 2017

September 19, 2017 Posted by Raúl Ilargi Meijer at 8:14 am


Edouard Manet Portrait of Emile Zola 1868

• When The Market Finally Implodes, Don’t Say These Charts Didn’t Warn You (MW)

• S&P 500 Buybacks Have Dropped By 25% Since The First Quarter Of 2016 (MW)

• Fed’s Balance-Sheet Unwind Will Be Moment Of Truth For Financial Markets (MW)

• $700 Billion Unpaid Mortgage Balances In Harvey And Irma Disaster Areas (ZH)

• Rand Paul’s Senate Vote Rolls Back the Warfare State (Ron Paul)

• US Senate Backs Massive Increase In Military Spending (R.)

• US Government Wiretapped Trump Campaign Manager Manafort Since 2014 (ZH)

• Equifax Suffered a Hack Almost Five Months Earlier Than It Disclosed (BBG)

• Toys ‘R’ Us Files For Chapter 11 Bankruptcy (MW)

• The IMF Needs to Stop Torturing Greece (Kyle Bass)

• Flags, Symbols, And Statues Resurgent As Globalism Declines (SCF)

• Hurricane Maria Hits Dominica: ‘We Have Lost All That Money Can Buy’ (BBC)

• 2017 Atlantic Hurricane Season Is Far From Over (Accuweather)

“..it will end, and like all previously over-valued, over-extended, over-leveraged and overly-complacent bull cycles in history, it ends badly..“

• When The Market Finally Implodes, Don’t Say These Charts Didn’t Warn You (MW)

The perennial headline: Stock market shrugs off everything. North Korea (shrug). Terrorist attacks (shrug). Hurricanes (shrug). Investor complacency (shrug). Lofty valuations (shrug). Trump (the best shrug, believe me). Whatever it is — screw it, buy! On the flip side, bears, of course, have spent the better part of the past few years missing out in one of the greatest bull stretches in market history. But that won’t stop them from revelling in their I-told-ya-so moment when it finally comes. Lance Roberts, chief portfolio strategist for Clarity Financial, is not one of those wild-eyed market alarmists, though he did earn our chart(s) of the day honors with this trio, which he says illustrates his “biggest concern” at the moment.

Chart 1) This just shows how this bull cycle is on pace to become the longest ever. “Regardless, it will end, and like all previously over-valued, over-extended, over-leveraged and overly-complacent bull cycles in history, it ends badly,” Roberts writes.

Chart 2) See those little bends in each red dotted line? There may be something to that. “One of the hallmarks of a late-stage bull-market cycle is the acceleration in price as investors capitulate by ‘jumping in’ as prices accelerate,” Roberts explains.

Chart 3) There might be a tell in what we’re seeing in corporate earnings. “The second downturn in earnings, particularly when sales are stagnating as they are now, tends to be the demarcation point of a repricing phase,” Roberts says.

Obviously, he’s unloading stocks, right? Not exactly … “For now, the bullish trend remains intact which keeps portfolios allocated towards equities,” he says. “BUT, and that is a Kardashian-sized one, we do so with a ‘clear and present’ understanding of the risk that we are undertaking.”

Read more … Briefs or link out for full @
https://www.theautomaticearth.com/2017/09/debt-rattle-september-19-2017/