“When life itself seems lunatic, who knows where madness lies? Perhaps to be too practical is madness. To surrender dreams — this may be madness. Too much sanity may be madness — and maddest of all: to see life as it is, and not as it should be!” - Miguel de Cervantes Saavedra,
This is our quest, to follow the logic, no matter how hopeless, no matter how far out of whack valuations become. To fight for the proper valuations, without question or pause, to be willing to hedge into rallies that run without pause. And we know, if we'll only be true, to this simple strategy, that our hearts will be peaceful and calm, when the market's depressed.
Yes, we feel a bit quixotic shorting the markets these days, especially when the whole World is literally against us. This morning, it was Goldman's pet ECB Chairman, Mario Draghi, who saved the markets, saying the ECB will not follow the Fed and will maintain their Free Money policy for as long as it takes – longer even:
“I do not see cause to deviate from the indications we have been consistently providing in the introductory statement to our press conferences,” the ECB President said in a speech in Frankfurt on Thursday. “We have not yet seen sufficient evidence to materially alter our assessment of the inflation outlook — which remains conditional on a very substantial degree of monetary accommodation.”
The ECB president countered such demands (to end easing) saying that the current policy path — which expects that