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The financial media has been replete
with warnings of another market hiccup (or much, much worse) in recent days,
the events in North Africa that have led to renewed calls for another
“oil shock” being heard far and wide, the global economy now,
apparently, shaking in its boots. Recent events have no doubt prompted Paul
B. Farrell to put a date or two on the impending doom in this commentary at MarketWatch:
Market Crash 2011: It will hit by
Christmas
Politicians lie. Bankers lie. Yes,
they’re liars. But they’re not bad, it’s in their genes, inherited.
Their brains are wired that way, warn scientists. Like addicts, they
can’t help themselves. They want to sell stuff, get rich.
…
Your brain needs to believe lies; Wall Street loves telling lies
Examples: USA Today headline: “Average Bull is 3.8 years:
We’re not at 2 yet.” More upside. Wall Street
loves it. The Wall Street Journal: “Stock recovery in high gear …
S&P500 now speeding toward its next landmark,” double its March
2009 bottom.
Other lies: Inflation and rate rises won’t
push China and America over the edge into a new bear recession.
That one’s real popular in Wall Street’s echo chamber. Wall
Street also cheers every time cable pundits and journalists repeat their
favorite statistic: That stocks rally in the third year of a presidency, often
more than 20%. Yes, Wall Street loves those 93% lies.
Biggest lie? Wharton’s perennial
bull, Jeremy Siegel, of “Stocks for the Long Run” fame, recently
told a TD Ameritrade Institutional Conference, “There’s nothing but upside
to come …the next several years are going to be good for stocks.”
Yes, one of Wall Street’s
favorite co-conspirators is hypnotizing thousands of our best money managers
and advisers into believing the lie that this bull market will roar
indefinitely. Worse, they’ll use that message to sell naive investors
on buying whatever junk Wall Street is selling.
As you might expect, it turns a bit
negative from there, Farrell cautioning readers to be out of stocks by the
time they shoot off fireworks on the Fourth of July.
Tim Iacono
Iacono Research.com
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