Friday July 14, 2017 08:05
Earnings season has begun and J.P. Morgan Chase & Co. beat the numbers that were projected but not the expectations of Wall Street. While no one is really discussing the real issues -- low interest rates, lack of economic growth -- the bank is just another in the long line of companies to increase earnings through contraction.
Pundits will continue to cheer on the markets with the numbers and beat the drum that this is now a new market. Remember that in the late ‘90s, it was the new economy versus the old economy. New market, this time is different and new economy-old economy is almost laughable. The cheerleaders won’t stop trying to convince you that this time is different, the same as when gold was $1,900, silver $50 and any other market that was different.
Good markets don’t need cheerleaders or explanations why they are good; free markets decide. This is just another version of a late-stage market that will correct, taking the small investor down with them again. Markets are always the same and it’s never different.