I do not like the idea of holding equities here, although a big selloff is unlikely before the November midterm elections. They seem rather fully valued, and the risks inherent in this unreformed financial system and globally interconnected mélange of mispriced exogenous events do not seem equitable.
So, for example, we saw stocks unable to rally even with a big financialisation announced, with the splitting of Hewlett-Packard into two different companies, although the stock itself could rally.
But the algos have these markets 'in hand,' and the Fed continues to pump money into Wall Street. The problem is that Wall Street is reported using 95% of their profits for stock buybacks and payouts.
And so money continues to be scraped out of the real economy and aggregate demand to the one percent.
This will be a fairly light week for the economic calendar.
Have a pleasant evening.
