Posted on: Tuesday, November 25, 2014
Written By:"The Elemental Economist" Jim Purnell
Phoenix Capital research, article titled “The Smart Money Is Selling The Farm”:
[“Buy stocks! It’s a great opportunity! They present great value.”
This is the non-stop mantra espoused on financial media. It’s simply astounding given that
1) Everyone with a modicum of sense knows stocks are in a bubble
2) Financial media viewership is plunging to multi-decade lows (you think they’d consider changing the content?)
Here are a few thoughts no one in the mainstream financial media seems to address.
First of all, corporate insiders are dumping shares at a pace not seen since 2000. That’s correct. The folks who know more about their companies and future growth prospects than anyone in the world are unloading their shares as quickly as possible.
Investment legends are doing the same. Warren Buffett, perhaps the single biggest fan of stocks in the last 100 years is currently sitting on over $50 billion in cash. Buffett’s partner Charlie Munger recently commented that he has not bought a single stock in his personal portfolio in over two years.
Aside from Buffett and Munger, Carl Icahn, Stanley Druckenmiller and numerous other investment legends have warned of a potential market catastrophe. George Soros has even taken out a record size bet on the market collapsing.
Beyond the legends, institutional investors have been net sellers of stocks for most of 2014. The same goes for hedge funds. Do you think they’d be doing this if they thought stocks were offering a lot of opportunities and value today?
Market volume is collapsing to a dwindle and fewer and fewer companies are participating in the rally. Both of these are clear signs of a top forming. Nearly half of the stocks on the NASDAQ are down over 20% from their recent peaks.
Global growth is slowing down sharply. The only non-manipulated economic data point out of China (electricity consumption) shows GDP growth there is HALF of the official 7.5%.
In Europe, Italy is back in recession for the third time since 2008. Germany’s economy contracted in the second quarter of 2014 and will likely be in recession before the first quarter of 2015. France has registered zero growth for six months now. And the US is showing anemic growth if any.
So we have corporate insiders selling the farm, investment legends warning of a collapse, institutional investors selling stocks, and global growth slowing rapidly.
And now is the time to buy stocks? Take note and prepare.]
Need we say anymore? The talking heads on TV are there to keep the masses committed to the Wall Street ferris wheel as quoted by the character during his liquid lunch in “The Wolf of Wall Street”. You see there has to be a loser for ever winner in the game of investing in stocks and who do you think that winner would be? Would it be the people who have well groomed & overpaid talking heads to keep a fresh pool of losing candidates for them to pillage or the little guy driving a bus of kids home from school? I thought so.
And when the very people that get worshipped everyday on the business news channels are buying a company or got caught in an affair with their secretary that’s all they can cover for a 24 news cycle, but when they are dumping stocks & running out the back door before a disaster do you think they are going to advise you of this development in order to protect yourself & your life savings?
What if Canada, our neighbor to the north & closest ally, was to quietly becoming the 2nd largest offshore Chinese Reminbi settlement hub in the world thus facilitating the move away from the US Dollar as the world reserve currency & bringing about certain doom for the US economy, do you think they would tell you of this? Nope . . . . and by the way . . . . this has already happened! Did you also know the big 6 US megabanks collectively have become the 5th largest Reminbi clearing hub in the world, thus helping to unseat the USD themselves?!?! That already happened too!
What if the global body known as the G20 arbitrarily forced sweeping legislation across all western nations to render the FDIC insured deposits to now be viewed as lower tier risk capital that is only insured a whopping 1.15% while you were overwhelmed by the president royal decree to legalize millions of illegal immigrants? Would you be mad about your life savings now being property of the banks? Well you might wanna read up on that one ASAP!
Its time to realize the “to the moon” stock market rally that happened as the economy shrunk by 50% was a failed attempt to jumpstart the economy by injecting monetary heroin into the upper echelons of the banking system, this has enriched the boys at the top while breaking the common man and now its time to see all of this manifest in all its glory just in time for Christmas. If that doesn’t put you in the Christmas spirit I don’t know what will! Get your “Plan B” insurance policy in physical gold & silver bullion before its too late folks. The backlash from this failed recovery attempt will bring the greatest wealth transfer in history in my opinion & with it a side of inflation the nation has never experienced before, thus making gold & silver bullion the only safe asset that can handle a major correction while protecting from inflation. Happy Holidays!
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