The difference between this new high in the stock market and the others (2016, 2013, 2011) that have occurred over the course of the latest unsoundly inflated global economic boom - besides how narrow and generally hollow it is - is that the other new highs were caused by an unexpected boost in the money supply that happened first while this one has been caused by expectations for a boost in the money supply (that's how they lower the rate of interest) that has yet to happen.What that means my dear friends is that the bulls are playing poker. They have driven the stock averages to new heights and in doing so are calling the Fed's hand. If the Fed fails to cut rates and earnings don't come in particularly well, the market is likely to take a very big hit.
~ Edmond Bugos, July 24, 2019
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