KOYAANISQATSI – Hopi Indian word meaning “life out of balance”.
The world is still out of balance, and we are still going higher – just not the day after the Fed.
Today we will likely see the market sell-off lower. It is what the market does when Powell speaks. In recent years, the response to the Fed occurs the next day for some reason. It would make sense if Greenspan was the Chair (because no one understood him); however, the current group of Fed Chairs have been quite colloquial.
After today's selling, and maybe Wednesday too, we will continue climbing. A market bull does not end because it is at all-time highs. It ends when it looks like it will never end. Right now, this is the most hated bull market in history, and we have politics involved. The best thing that could happen to the Democrats in November is the market crashes. I am not directly accusing them of politicizing the corona virus. I don't have to. Kamala Harris last night used the virus to shout racism. Biden already said Trump is a xenophobe for stopping flight in from China.
The nonsensical manner in which rules and protocol are mandated, and the often draconian and egregious methods of enforcement are enough proof of either incompetence and/or interference. Some of the stuff is just plain stupid. Drones are being used to spy on non-compliant mask wearers. Somehow a church with 5 people in it is more dangerous than a smaller bar with 200. Rioting in large groups without masks is apparently safe, but schools with masks are not safe. Apparently there is something about carrying boxes of Nikes and TV's that makes one immune to the virus.
So despite my stance, it is not impossible to conceive of another major market fall in the next 74-days if we have a second mutated wave of the virus – real or not. Very sadly, my guess is that the virus will become no big deal the second week of November.
People: Orwell wrote his works as a warning – NOT as an instruction manual.
NEXT BIG DAYS:
Sept 29 – Presidential debate #1
October 15 – Presidential debate #2
October 22 – Presidential debate #3