FAST FIVE: The 2022 Market Disaster… More Pain To Come

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Such are the currents of history and the tides/fates of broke(n) regimes.

That is, years and years of issuing IOU's (i.e., sovereign bonds) has made those IOU's less attractive, and the solution-myth of creating money out of thin air to pay for those IOUs is becoming less believable as inflation rises like a killer shark from beneath the feet of our money printers.

Such omit days are screaming signs of “uh-oh” which go un-noticed by 99.99% of the consensus-think financial advisors selling traditional stocks and bonds for a fee.

As we've warned, mean-reversion is a powerful force and we see deeper lows/reversions ahead: Toward that end, we see an SPX which could easily fall at least 15% lower (i.e., to at least 1850) than the “Covid crash” of March 2020.

Furthermore, the USD's days of relative strength are equally numbered, as is the current high demand for US T-Bill-backed collateral for that USD.

Categories: ZH