TSP & Vanguard Smart Investor Posts

TSP Smart: Something Big is Going to Happen

Understand today the inside money is selling high today into the Fed’s fire hose and new companies will make their money in the financial markets and probably never in the real economy. The retail money is pouring into the markets laughing at the old timers who have lost their touch. Now I agree there is a chance the central banks continue the madness, but something is going to break sooner or later – something big.

Doug Noland: More W than V

Global markets remain haunted by the specter of an unwind of unprecedented speculative leverage. When markets break to the downside, there is clear potential for another episode of derivative-related selling that would panic buyers.

The Smart Bird – He Knew

We are in a hostile investing environment with poor long-term support for the current prices in the markets. The stock market is simply riding the Fed’s largest intervention in history. And every wave ends the same.

Doug Noland: The Scourge of “Whatever it Takes” Monetary Mismanagement

The global Bubble has been pierced, though unprecedented monetary inflation only exacerbates the epic divergence between inflating asset prices and deflating economic prospects. As I’ve written over the years – and as demonstrated rather conspicuously in March: contemporary finance seems to operate miraculously – so long as it’s inflating. It just doesn’t work in reverse. These days it’s even more frightening to contemplate how this all ends. The Scourge of “Whatever it Takes” Monetary Mismanagement.

TSP Funds: Instability

Use common sense and look around. Earnings and cash flow determine stock prices after the corporate buybacks go away. The Fed is screaming DANGER and yes they “temporarily” provided liquidity (printed money) to halt the financial sell off. But they can NOT stop the economic damage that matters in the long run.