Headline Today on Marketwatch -- Grocery Inflation Getting Worse!

 

Unfortunately, although overall inflation was down modestly last month, grocery inflation is only getting WORSE! Despite this, stocks skyrocketed more than 500 points today!

Food Hyperinflation Is Now Coupled With Dollar Devastation

 Unfortunately, we are seeing the soon arrival of both food price hyperinflation coupled with the destruction of the value of the US dollar, as depicted in these two charts. The first depicts the devaluation of the US Dollar over the past several weeks, and the second chart shows the latest update of the price of corn and other food commodities. 

Food Prices Continue to Skyrocket!

 This is today's chart showing the price of food commodities! 

Inflation and Food Costs Go Even Higher

 Yesterday, the price of corn futures rose limit up. "Limit up" is the most any commodity is allowed to move in a single day. But today, after moving modestly lower overnight, the price of corn (and other food commodities) rose and closed even higher. 

Food Inflation This Way Comes

 This is the price chart for corn over the past 9 months. This is typical for food commodities during the same period. Inflation is rapidly building! 

If Record High Stocks and a "Lost Decade" Aren't the Definition of a Bubble, What Is?

 This article this morning on Marketwatch includes an interview with Tony James of the Blackstone private equity group. In it, he mentions some consequences which may soon occur if Joe Biden is elected president just weeks from now. 

 The article states that, "James said higher taxes and stepped-up regulation, which are expected if former Vice President Joe Biden wins the White House in November, will also lead to greater costs and lower profits, which could take the wind out of the stock market." 

Dow Plunges 700-800 Points

 

Stocks Soar 450 Points Even As US Debt Exceeds GDP

 It's hard to believe that this is news that would lead stocks to rally to a fresh new all-time record high, but it has. The Wall St Journal today has an article with the below headline:

The Wall St Journal says that, "U.S. government debt is on track to exceed the size of the economy for the 12 months ended Sept. 30, a milestone not hit since World War II." The US is taking on a staggering amount of debt this year, and the total is more than the entire amount of GDP for the year! This is a calamity in the making!

Market Pros Expect a Crash? How Dare They!

 In an article on Marketwatch today, Mohamed El-Erian, Allianz’s chief economic adviser, explains that “...the seemingly endless rally… gives the impression that prices are endorsed and supported by the entire professional investment community.... After all, "he continues, "despite the vocal concerns over valuations having split away from underlying corporate and economic fundamentals, few fund managers have been willing to challenge the market by placing outright shorts. “

 

Stocks Reach New Record Highs Even As Corporate Bankruptcies Soar

 

Financial analyst Daniel Lacalle today shares the following insight:

"One of the most alarming facts about this crisis is the pace at which bankruptcies are rising. Despite an $11 trillion liquidity injection and government aid in 2020, stocks and bonds at all-time highs and sovereign as well as corporate yields at all-time lows, companies are going bust at the fastest pace since the Great Depression. Why? Because a solvency crisis cannot be disguised by liquidity."

Are We At a "Dire Turning Point"?

 An article today on The Atlantic website asked an important and valid question. Are we reaching a "dire turning point" that could send the economy into collapse? 

Stock-Market "Disconnect" From Reality!

The Wall Street Journal today has an article the suggests that the stock market is "disconnected" from reality. Despite this, the Dow is up 200 points and the S&P500 index is at a new all-time record high! This bubble just gets bigger and bigger.

Stocks Rise Despite Dreadful Economic News!

This headline on CNBC today seems to summarize well the risk! Ironically, stocks have been modestly HIGHER all day despite this news! 

 First time claims for state unemployment benefits rose above 1 million again, a sign to some economists that the economy’s rebound could be decelerating.

Jim Cramer Tells Us Not to Be Fooled By This Market!

 Jim Cramer told us today on Marketwatch not to be fooled by new market highs! He warns us that despite a new high for the S&P 500 index, the economy really isn't as strong as that new high would imply. "‘The S&P’s new highs are a tale told by an idiot, full of sound and fury, signifying nothing about the hardship of millions of people on food stamps, or the millions about to be fired from service jobs, or the homeless, or the people who are just huddled at home waiting for the vaccine..." he says. 

 A Washington Post article today suggests that stocks are "divorced from reality" because the economy "trails behind" while stock hit new record highs. 

Stocks Rise... As Manufacturing Slumps

 

Center for Disease Control Predicts "Worst Fall Ever"!

 

Dow Has Best 100 Days While GDP Drops 32.9%! What?

 

Someone needs to tell this market that it needs a dose of reality! In Q2, US GDP dropped 32.9%, but the stock market ROSE the most since 1933. 

Market Continues to Ignore Reality

 “Never before have I seen a market so highly valued in the face of overwhelming uncertainty,” says James Montier on Marketwatch today.

 

Despite Covid19, Stocks Reach New Highs