Investors Are Ignoring A Ticking-Time-Bomb Stock Market, Says This Money Manager

[catfish1957]

https://businessnewsindex.com/2021/05/11/investors-are-ignoring-a-ticking-time-bomb-stock-market-says-this-money-manager/

<snipit>
Tuesday is looking dicey for stocks, notably the technology space, as inflation jitters continue to ripple across markets. The sector has been bearing the brunt of concerns that higher inflation may prompt an early end to the Federal Reserve’s COVID-19 pandemic-driven accommodative stance.

After last week’s downside jobs surprise, some fear Wednesday’s consumer price data could also deliver a nasty shock. Not helping are fresh Chinese data on Tuesday showing surging factory-gate prices, though the consumer side was subdued. That is as investors continue to monitor fallout from a downed U.S. energy pipeline.

Inflation is the “worst-case scenario” for this ticking-time-bomb market full of complacent investors, warns our call of the day from Thomas H. Kee Jr., president and chief executive of Stock Traders Daily and portfolio manager at Equity Logic.

“Arguably, the ONLY reason stimulus has even been possible is because there has been no inflation. If inflation comes back, all of the safeguards investors have been given (free money from stimulus) will be dissolved and won’t be able to come back to save the day,” Kee told MarketWatch on Monday in an interview via LinkedIn. He said recent jobs data indeed suggest price rises will be “more serious than previously thought.”

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I think everyone has noticed that i keep screaming that this market is oversold.  As the article mentions, if (and big if) the goverment tells us the truth on the CPI, we are going to see a serious market correction.  Graphs showing trends in EPS growth (which has dropped to zero basically), and crashing P/E ratios......     All formulas for some serious downturns.  Money is...  Is it going to be like '87?, '00?, or '08? 

Biden's Carteresque handling of an already COVID baclashed weary  economy is turning this recovery from a "V" to a "M"

[cato potatoe]

The CPI number for April was 4.2%.  Does anybody believe your living expenses only increased by this amount since last April?  This government loses credibility by the day.

[catfish1957]

The CPI number for April was 4.2%.  Does anybody believe your living expenses only increased by this amount since last April?  This government loses credibility by the day.

Knew this was coming.  Prices on everything is sky rocketing,  Honestly, I haven't seen anything like this since the mid '70's.  Of course the Biden WH lies and fudges the numbers.  This report massively fails the "red faced test"

[andy58-in-nh]

As long as the Fed kept pumping equity into the system and managed to hold interest rates at near zero, the asset bubble has continued to inflate.

In spite of the long-term risk, there has been no other place to invest - other than stocks - that promises any reasonable rate of return.

And whenever one risk factor or another has arisen - political, currency, valuation, credit - the Fed or another Central Bank (ECB, BOJ, etc.) has acted to tamp it down by opening the money sluices and feeding the beast.  In the case of our Federal Reserve, they distribute cash to their member banks who then invest it directly into the stock market through their proprietary trading desks.

Many of us in the financial services world have been warning about this for years - but no one really wants to stop the injections of monetary bliss that produce a high every time people look at their 401(k) statements.

But the withdrawal process, as anyone who has experienced it knows all too well, is going to be a bitch.