The fact of the matter is that the market is dancing with the devil to the above-mentioned tune and when you dance with the devil, you wait for the song to stop… And eventually, it will stop.
The ongoing big currency fluctuations and the recent drop in the major markets is more than just a typical “correction” it is much more. It is all part of the massive cluster F*#k we created known as the current global financial markets.
In 2013 it didn’t mater what bond you put out there, the market would buy it. It didn’t matter what stock market you looked at the market was chock-a-block with buyers. So Where do we go when the music stops?
Down the black hole is where we go. And I’ll tell you why.
Because of the rise in stocks and bonds the finance sector should be doing well right now. Private banking should be doing a great business as assets under management (AUM) increase.
So riddle me this oh wise ones: How in the heck is it that private banks are constantly letting people go and kicking out smaller clients. Doesn’t sound like a rip roaring brilliant business to me?
I’ll tell you why, because business isn’t good. Despite the rise in AUM, transactions are down and client activity is down. People aren’t investing new money and the economy isn’t really creating wealth. So where has the “growth” in asset prices been coming from?
It’s been coming from Fed Ham United: