Doom,Gloom and Champagne

There were several key conference this week where business leaders, investors and big thinkers shared their ideas and thoughts on the world today. The one getting the most coverage is the Ira Sohn conference in New York were major investors give talks to raise money to fight children’s cancer. The big news out of there is that Stanley Druckenmiller said flatly that investors should get out of the market. He said the fed has no end game and their policies are preventing the very growth they had helped to engineer. Mr. Druckenmiller said ““I have argued that the myopic policymakers have no end game,” Druckenmiller said "They stumble from one short-term fiscal or monetary stimulus to the next despite overwhelming evidence that they only produce a sugar high and grow unproductive debt that impedes long-term growth. Moreover, the continued decline of global growth despite unprecedented stimulus the past decade suggest we have borrowed so much from our future and for so long that the chickens are now coming home to roost."

He also pointed out that corporations are borrowing a lot of cash and using it for financial engineering and buying back stock rather than expanding their operations and creating and preserving jobs. All of this adds up to the approaching end of the bull market according ot the former hedge fund manager. He told the gathering that “"Three years ago on this stage I criticized the rationale of Fed policy but drew a bullish intermediate conclusion as the weight of the evidence suggested the tidal wave of central bank money worldwide would still propel financial assets higher. I now feel the weight of the evidence has shifted the other way; higher valuations, three more years of unproductive corporate behavior, limits to further easing and excessive borrowing from the ...

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Rainwater, Banks and REITs

There is a quote from Richard Rainwater that has floated around the internet the past few weeks. Rainwater once said “Most people invest and then sit around worrying what the next blowup will be, I do the opposite. I wait ...

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Rainwater, Banks and REITs

There is a quote from Richard Rainwater that has floated around the internet the past few weeks. Rainwater once said “Most people invest and then sit around worrying what the next blowup will be, I do the opposite. I wait ...

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Trade of the Decade Update,First Place and Good Times

Earlier this week I released my video presentation on the State of Banking: Trade of the Decade update. It is on my YouTube channel if you want to check it out but I also want to rehash it in print ...

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Activists, Baseball and Merle

I was taken to task recently by a reader and subscriber over my constant use of the Stern Agee study on activists and community bank stocks. I use it all the time most recently in a Real Money article on ...

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Junkies, Economists and Teddy Bears

Another week, another rise for the stock market. The big news this week is the Janet Yellen Speech. The Nationals- Cardinals game I planned to watch at that time was rained out so I went with the traditional fed speak ...

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Fevers, Politics and Gypsies

This weeks epistle shall be a little shorter than normal as I have spent a big part of the week recovering from what I assume was a reaction to a combination whooping cough/Tetanus vaccination booster my Doc insisted I ...

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Lower Longer, Yapping Poodles and the Private Equity Mindset

The big news of the day is that Mario Draghi threw everything plus the kitchen sink at the European economy today. Markets started to rally but faded off when he had the effrontery to suggest that the may not lower ...

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Office Supplies, Flippers and The Future

I have been quite the slacker this week. Tuesday I didn’t get a video out because I was happily eating things not on my diet while watching the Orioles play the Braves. I am getting this note out a ...

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Quick Change, Low Returns and the Story of Your Life

Boy things change quickly on Wall street, A week ago Barrons ran a piece that said “The comforting story that U.S. investors have been telling themselves—that weakness only exists overseas—is beginning to look like a mirage.” This ...

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Champagne, Private Equity and Baseball

The markets continue to get hammered and there is a distinct odor of fear hanging over the markets. We are trying to back bounce this afternoon as investors rush to buy tech as it looked “cheap” to them. I have ...

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Bankers, Attila and the Cubs

I just came back from the Bank Director Acquire or be Acquired Conference in Phoenix with three things The first is a nasty cold, obtained no doubt on those germ soaked, bacteria clouds we call modern day passenger aircraft (many ...

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