The Storm Master

When certain companies have stand out earnings releases/ quarters and their stock goes down.....especially the bell weather stocks......it tells you there is a sea change going on.....investors/ traders fighting the tape....regardless of valuation......like we have now....

China remains the global wild card......for everything.......remember they own the most debt of all the debtor nations.....if their economy is not OK and their stock market (confidence) is not rising......watch out.....the first thing they will stop doing is buy any more bonds.....they are too smart.......remember they stopped buying US Treasuries five months ago...

Simple math... as so many of our friends, maybe don't appreciate the debt market top right now...and think bonds are OK here and we have deflation. A Countries growth has to exceed it's coupon on debt to be ahead of it's debt liability....if not then debt is growing faster than the economy and it is bankrupt. So...if cost of debt is say 5%..then GDP better be more than 5% when debt to GDP is 100%......got it!

Growth is slowing globally right now at the worst possible time.....less productivity because of austerity means less tax receipts.

Gold and Silver need a well deserved rest.

Oil is showing just how sensitive it is to economic growth! Most soft and hard commodities are weak....this would suggest a material slowing of global growth right now.

All this is on our time frame anticipating dramatically rising tax rates in eight months and elections that will determine the countries future in six months.

We are not going to change...those who voted for it sure are getting a big change.

Danny Boy seen here hiding from the storm......he does not like to get wet....but loves car rides.