VIX, Fear, Greed and Food for Thought.

Discussion in 'Markets & Economies' started by JulieW, Mar 9, 2020.

  1. JulieW

    JulieW Well-Known Member Silver Stacker

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    The mortality rate is not the story here, economically speaking. The human tragedy is enormous, unfortunate and petrifying, but the devastating deaths are not the cause of the TUMBLING stock market or of the delusionary bonds trading action.

    What makes this so tantalizing and crippling is the ease with which the virus spreads and the reactions of businesses, authorities and the public to this predicament.

    The snowball effect of ever-growing fear is creating a whirlpool of UNHEARD OF market pricing mechanisms. Forget 2008; this is unprecedented in global financial history – the levels of DESTRUCTION and RUIN is gargantuan and MONSTROUS in 2020.

    The VIX gauge is going to leave you open-mouthed:

    [​IMG]
    Courtesy: Zerohedge.com

    This escalated so quickly that it even EXCEEDS and overshadows the Lehman Brothers collapse.

    All of the Treasury bonds have exploded higher in price, crashing down in yield. The 30yr bond dropped in one day more than ever before. Oil prices fell by double digits in a single session; these are signs of PLIGHT and CALAMITY, which are a once-in-a-century rarity. The Volatility Index actually reached the mid-fifties, which it only did in 2009.

    The S&P 500 Index touched such low levels of Relative Strength, which previously only happened in end-of-the-world scenarios. The up and down action – gaining 4% one day, losing it all the following, bouncing on the third day and completely crashing down on the fourth and fifth sessions – has only been EXPERIENCED by investors of the WW1, Great Depression, WW2, 9/11 and 2008 periods.

    Beyond a shadow of a doubt, this is the equivalent of facing your greatest fear, whatever it is. If you hate snakes, this is like jumping into a dark container, blindfolded, surrounded by hundreds of them. If your anxiety is heights, it is like circling the edges of the Empire State Building, on a windy day, without safety gear. I've heard friends of mine, professional money managers, talking about potential exchange halts, FEMA camps making a comeback and using the military to keep the peace on the streets.

    [​IMG]
    Courtesy: Zerohedge.com

    It isn't normal for markets to go from extreme fear to extreme greed so frequently, as they've done in the past three years, but we live in a FAKE NEWS world, with UNRELIABLE market indicators, criminal-like banking policymakers, and clueless central planners. I don't know how anyone can ignore gold's INCREDIBLE outperformance in these times.

    History doesn't see the bull market resuming that quickly. In similar set ups in the past, stocks didn't recover for a whole year afterwards, finishing IN THE RED. The only time the FED acted as they just did and the market rallied afterwards, Washington accompanied the slashing of rates with the April 1933 gold confiscation and subsequent DEVALUATION of the dollar.

    As I see it, no one will attempt this kind of tactic this time around, because there is no gold backing the fiat currency, but other forceful and HOSTILE policies could be enacted. President Trump is 100% on board with much more STIMULUS measures.

    Gold has proven that when SHIT happens, its universal appeal, being that it has ZERO default chance, is worth a lot. Nobody has ever lost significant purchasing power by holding a precious metal over time.


    https://www.wealthresearchgroup.com/
     
  2. pmbug

    pmbug Active Member

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    The markets crashed overnight and this morning because of the oil price shock from the Saudi Arabia/Russia dispute. It's not all Covid-19.
     
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  3. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Yep epic failure by this administration. Trump might need some of the tp people have been hoarding.
     
  4. heartastack

    heartastack Well-Known Member Silver Stacker

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    Just need a bank to fail now
     
    sammysilver, sterling-nz and 66rounds like this.
  5. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    I read they are increasing the repo bailouts another 50 billion each day.
    Sounds very productive!
     
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