As in, not credible, especially when you take into account the not very credible volume counts on SPY this week, with just 73M shares on Monday and 95M shares yesterday compared to 333M shares traded on the way down 2 weeks earlier. Come on people, where's your enthusiasm?
That's the problem, of course, PEOPLE are not buying stocks, Fund Managers (arguably, not people) are not buying stocks, even HFT trading programs are sitting this one out. No, it turns out the only idiots buying stocks at these record-high levels while ignoring all that is wrong in the global economy is, you guessed it – Central Banksters!
While Investors are bailing out of equity funds at a pace not seen since 2008, the retail suckers are being herde in to hold the bags by the Central Banksers, who, along with the MSM are, of course, owned by the Top 1% – the people who are selling their equities at record highs.
Investors have pulled the equivalent of $133 billion from global equity funds so far this year, according to a weekly fund flows report from Bank of America Merrill Lynch released Friday. Of that nearly $80 billion has been pulled from U.S. equity funds.
None of that matters, of course as our beloved Central Banksters have purchased (on our behalf because we're on the hook for any losses) $600Bn in assets, at least 20% of which is, you guessed it – equities! That's why we get these wild end of day rallies – the Fed doesn't buy like a human, they don't care what the price is – they decide to buy $2Bn worth of stocks at the end of the day and then they barrel into the markets, spending like drunken sailors with one day of shore leave. Only they do it every day!
In 2016 alone, the ECB and BOJ, alone, have bought $500Bn of assets. China is not even on this chart so figure another $200Bn for them and now we're hearing the BOJ wants to do more along with the BOE and maybe even the Fed and China, for their part, are…