Stocks & Bonds Surge – The 1% Wins Again

Stocks surge, bond yields crash, and the 1% wins again as the fed vows to never raise rates.

Today’s Scorecard:

Dow +200
Nasdaq +40
S&P 500 +26

Here’s what happens when you bet against America, free markets, web 2.0, high-IQ, the fed, the consumer, globalization, smart policy markets, and the best and the brightest. It’s not pretty. Metaphorically speaking, you may as well throw your money into that wood chipper, as many of the losers and idiots who read Z3r0hedg3 have already done, still waiting for the crisis that will never come. Still waiting for inflation; still waiting for bear markets, asset deflation, and web 2.0 to burst. Still waiting, futility, for Bay Area home prices to fall. It will never happen – Social Darwinism 2.0 and the biological determinism bull market is unstoppable. All forces – economic, biological and social – are converging to a single point – the singularity, transhumanism, and technological rapture. Lesser humans will bow to our new cognitive overlords. You will be pulled, dragged kicking and screaming to this fate of which there is no escape. Your wishful thinking, your yearning for crisis and a day of reckoning when the elite who reside in their insular bubbles of prosperity will come crashing back to earth – is for naught. Some things, like web 2.0 valuations going up all the time, never change. Fighting it is like trying to stop a steamroller with a mattress.

Above rolling pastoral hills extending as far as the eye can see, a deep blue sky gradually fades into blackness. Metaphorically, sky is the limit in the new biotech revolution, a continuation of the first revolution in 1995, lead by Biogen and Gilead. Computer simulations of the DNA structure, protein folding, and amino chains that hold the promise of cures for many diseases, including most importantly, cancer. One day we may be able to transplant the totality of individual consciousness to a chip or some form of computational membrane. These chips can be implanted -either directly or remotely – to segregate bodies.

And you see these whiners in the comments of the NYT, Huffington Post and Washington Post, perpetuating bogus leftist conspiracy theories about the Rockefellers and fed funny money, taking shots at the financial industry, taking shots at research that shows IQ is important, and shots at New York’s elite public schools – all targets of the left. The perfect liberal world is one where IQ is meaningless or that smart people are defective in such a way that they are worse than those of average intelligence, where what little wealth remains is spread as thin as rice paper, where the web 2.0 boom has bust, stocks have crashed, Facebook becomes Myspace, Uber is regulated out of existence, and interest rates are at 10% – but everyone has an overpaid, redundant low-IQ job. Under leftist rule, even those who have the financial means not to work or are very talented will still be forced to do menial labor.

A good heuristic is to assume that 99% of the time what the media calls a crisis is really just noise and will pass. That 1% was in 2007 when predilections of a housing crisis did come true, but that is just one exception out of hundreds of failed predictions. Even Nobel Prize winners get it wrong, most notably the liberal Bob Shiller’s insistence that the market is overvalued. Since 2011, we’ve been telling readers to buy stocks. In 2011, at the height of the Europe debt crisis, we were right about Greece, Spain, and Portugal not pulling the world in recession and to buy the dip. We told readers in 2013 that the fed would never raise rates, despite the taper fears. We told readers in 2013 that the sequester and debt ceiling would not cause a recession. We told readers in 2014 that the end of QE would not cause inflation or a bear market. We were right on all counts. The permanently high plateau Irving Fisher spoke about is here, but it won’t end in a crisis. The party is not over – not by a long shot. Five years from now – just like five years ago- we’ll still be making new highs in the market, we’ll still be reading the same doom and gloom nonsense, we’ll still have these idiots waiting in vain for the black swan that will never come and America’s forever postponed ‘inevitable’ decline. And still …stocks will keep going up. Dow 25,000 soon. S&P 3,000. The question is: do you want to be a loser? Or you want to at least participate in the post-2008 wealth creation boom even if you are not smart enough to create the next Snapchat, which is will be worth $50 billion soon.

Related: Thanking the Fed for Doing a Good Job