It has been three years to the day since I shared my first informal video with Signals Matter subscribers, and thus we felt that a little walk down memory lane was in order.
In the video link below, we touch upon familiar territory and pull it all together in one visual re-cap.
As you will note below, and despite our open dismay for the Fed Fraud which allows markets to rise as real economies sink, we have to accept reality, and rise above bear vs bull debate.
More than once in the last three years, we were openly bullish whenever the Fed was handing markets more accommodation—i.e. more fat pitches.
The video below confirms these bullish calls in the summer of 2018 as well as the spring of 2019.
Of course, we were also openly bearish whenever the Fed was being openly less accommodative, as was confirmed in Q4 of 2018 and Q1 of 2020.
Why so easy to track the market’s movements?
Because these rigged markets rise and fall on Fed action, not price action. All we have to do is track a central bank.
A quick walk through the recent past confirms the same and we hope you enjoy this collection of market moments.
Best,
Matt and Tom
I believe it is fair to say that your recap of the markets from 2017 – 2020 (the entirety of which I was a college undergraduate) goes against everything that I was ever taught about Macro economics, corporate finance and financial markets and institutions! Bizarre! Talk about training a generation to be willfully ignorant to the real market forces that are at work. Alas, the party rages on!
Cheers brotha!
Ahhh Russ, but you already know that to be truly ahead of the pack, you need to leave the pack, including the “pack” of the best schools…Besides, the best education teaches you to think critically, not conventionally. That said, I had to unlearn a lot of basic econ to understand econ. US education is Keynesian based, rather than Austrian based–to its detriment. More importantly, you learn via observation and data, not pundits and headlines. The process is slow, but rewarding. That said, it’s important to remain humble rather than just cynical, and patient rather than top-chasing. The insanity that passes for economic policy today can last for awhile, sadly. Which means investors have to manage risk even when the Fed is doping markets toward seductive highs. This is a very hard and tempting bull to fight, especially since it’s a fight against the Fed, which few can win. Rather than fight the Fed, I chose to stay out of its way–which means I miss certain rallies , but never get slaughtered. One day, and I dont know at all when, there will be a gruesome day of pain for markets artificially sustained in this manner. But as you know–play where the puck is headed, not where the puck is now.
The Austrian School of Economics is about reality and truth. Am so glad it is making a comeback in recent years after having been dismissed and falling out of favor in the 1950’s in favor of the Keynes School.
Ideas really do matter! As does having the discernment to know what is a bad Idea and a good Idea to embrace.
The Keynesian philosophy is responsible for much of the mess we are in today. For folks who want To know and learn more about “Classic Capitalism“, real world Classic Economics (vs. the Crony Capitalism system that is enslaving and killing
us is today) I strongly recommend you click on this link and start your knowledge journey here:
https://mises.org/economics-beginners
I promise it will be enlightening and worth it !!!
Sincerely,
Richie B
PS – be sure if you click on the above web link, To watch the 3 minute video At the beginning for a quick intro to Austrian Economics and let your journey of discovery of the truth begin!
Richie B