[KR1485] Keiser Report: Stock Markets Party Like It’s 1999

Continuing with their look back on 2019 and their look forward to 2020, Max and Stacy look at the year end charts from 2019 as the NASDAQ (up nearly 40%) parties like it’s 1999 when the index closed up 85%. Could 2020 achieve even higher returns? The massive end of year rally in the stock markets matched the Fed’s v-shaped recovery in its balance sheet which ballooned by over a hundred billion per month in the last four months of the year. Should anyone fight the Fed? Or ride their free money helicopter to ever higher highs? In the second half, Max talks to Mitch Feierstein of PlanetPonzi.com about the euphoria in the markets. How long it might last, how big the Fed’s balance sheet might grow. Mitch admits that he had called 2019 wrongly because he looked at fundamentals rather than at the willingness of the Fed to print money with such enthusiasm. How long it may continue is anyone’s guess, but the higher the bubble goes, the bigger will be the eventual fall.

13 comments on “[KR1485] Keiser Report: Stock Markets Party Like It’s 1999
  1. Youri Carma says:

    MARKETS

    Finance Professors: Buybacks Done As Open-Market Repurchases Should Be Banned
    https://www.zerohedge.com/markets/finance-professors-buybacks-done-open-market-repurchases-should-be-banned

    In 2018 alone, with corporate profits bolstered by the Tax Cuts and Jobs Act of 2017, companies in the S&P 500 Index did a combined $806 billion in buybacks, about $200 billion more than the previous record set in 2007. The $370 billion in repurchases which these companies did in the first half of 2019 is on pace for total annual buybacks that are second only to 2018. When companies do these buybacks, they deprive themselves of the liquidity that might help them cope when sales and profits decline in an economic downturn.

    Making matters worse, the proportion of buybacks funded by corporate bonds reached as high as 30% in both 2016 and 2017, according to JPMorgan Chase.

    Buybacks’ drain on corporate treasuries has been massive. The 465 companies in the S&P 500 Index in January 2019 that were publicly listed between 2009 and 2018 spent, over that decade, $4.3 trillion on buybacks, equal to 52% of net income, and another $3.3 trillion on dividends, an additional 39% of net income. In 2018 alone, even with after-tax profits at record levels because of the Republican tax cuts, buybacks by S&P 500 companies reached an astounding 68% of net income, with dividends absorbing another 41%.

    Because of corporate tax cuts, in 2018 taxpaying households were burdened with about 38% of the combined government and business debt that enabled corporations to do buybacks.

    And when the stock market crashes all that money will be gone and thus will be very deflationary.

    The “Real” Phillips Curve Is Not Flat
    https://www.zerohedge.com/economics/real-phillips-curve-not-flat

    The S&P’s Biggest Bear Capitulates
    https://www.zerohedge.com/markets/sps-biggest-bear-capitulates

    BONDS

    US Treasury Starts Off New Decade With Medicore, Tailing 3Y Auction
    https://www.zerohedge.com/markets/us-treasury-starts-new-decade-medicore-tailing-3y-auction

  2. Youri Carma says:

    OIL

    Oil Algos Confused After Iraq Rocket Strike, Crude Draw, & Product Builds
    https://www.zerohedge.com/energy/oil-algos-confused-after-iraq-rocket-strike-crude-draw-product-builds

    2020 Will Be A Crucial Year For Oil
    https://www.zerohedge.com/energy/2020-will-be-crucial-year-oil

    U.S.

    US Factory Orders Tumble But ISM Confirms Service Sector Rebound
    https://www.zerohedge.com/economics/us-factory-orders-tumble-ism-confirms-service-sector-rebound

    US Trade Deficit Crashes To Smallest Since Trump Elected
    https://www.zerohedge.com/economics/us-trade-deficit-crashes-smallest-trump-elected

    The report indicates trade is on track to contribute to fourth-quarter economic growth after having weighed on gross domestic product for the previous two periods, though the shift reflects more of a drop in imports than a gain in exports.

    New IRS Data Reveals Winners & Losers Of Wealth Migration Across 50 States
    https://www.zerohedge.com/personal-finance/new-irs-data-reveals-winners-losers-wealth-migration-across-50-states

  3. Youri Carma says:

    WE ARE NOW AT WAR.. US BASE HIT…MULTIPLE MISSILES
    Jan 7, 2020 Gregory Mannarino
    https://www.youtube.com/watch?v=vpOjIvOiMP4

    (Must Watch). The Current Market Valuations CANNOT BE JUSTIFIED.. This Is What’s Coming
    Jan 7, 2020 Gregory Mannarino
    https://www.youtube.com/watch?v=2Hn8xZrarIY

    Alasdair Macleod-Bond Worries & Gold
    Jan 7, 2020 Jay Taylor Media
    https://www.youtube.com/watch?v=mqEvjMFMJa8

    Iranian missiles launch gold past $1,600
    Jan 7, 2020 Peter Schiff
    https://www.youtube.com/watch?v=Yb0T_9RZXh8

    Steve Keen – 2020s to Stagnate If Private Debt Overhang Is Not Reduced
    Dec 4, 2019 Silver Bullion TV
    https://www.youtube.com/watch?v=3j9ey4HH1ds

  4. Youri Carma says:

    IRAN HAS RETALIATED FOR SOLEIMANI’S DEATH
    Jan 7, 2020 SyrianGirlpartisan
    https://www.youtube.com/watch?v=cddIm6jNxSI

    US Oil Executives Anonymously Admit That Real Oil Breakeven Price Is $50 Or Higher NOT $35!
    Jan 7, 2020 WallStForMainSt
    https://www.youtube.com/watch?v=jm8IiiAjlV0

    France Vows Retaliation Against US Sanctions
    Jan 7, 2020 TeleSUR English
    https://www.youtube.com/watch?v=IbdKM7jGWlQ

    Angela Merkel test pilots China style internet surveillance
    Jan 7, 2020 The Duran
    https://www.youtube.com/watch?v=bjhO_jwNCnE

    Critical Thinking Jan 7 2020 What the PLUCK? David Wilcock & Corey Goode correct? CW & Zenn wrong?
    Jan 7, 2020 clif high
    https://www.youtube.com/watch?v=NnMnbFCyJxA

  5. Youri Carma says:

    John Rubino – World Governments have Given Up on Fixing Financial System
    Jan 7, 2020 Greg Hunter
    https://www.youtube.com/watch?v=LFlGIZj89PY

    It’s On.
    Jan 7, 2020 The Money GPS
    https://www.youtube.com/watch?v=EwpqeeRMoaw

    WAR ALERT!! Urgent Time to Rig ALL MARKETS!! (Bix Weir)
    Jan 7, 2020 RoadtoRoota
    https://www.youtube.com/watch?v=_uuE7Y5ZkwI

    Samsung Electronics Q4 earnings drop 53% y/y
    Jan 7, 2020 ARIRANG NEWS
    https://www.youtube.com/watch?v=QnYCnEcrYCM

    The Deadly Seven Top Security Attacks
    Jan 7, 2020 TWiT Tech Podcast Network
    https://www.youtube.com/watch?v=myTQs-gAUtY

  6. Mizun Chang says:

    Hi Youri Carma:

    A mainstream Wall Street guy Byron Wien former CIO of Morgan Stanley and Vice Chairman of Blackstone putting his clients into gold. Possible global financial reset within 10yrs? De-dollarization as we speak

    https://www.forbes.com/sites/martinsosnoff/2020/01/08/byron-wiens-2020-surprises–not-exactly-earth-shaking/#4f090e4f7cc5

  7. Youri Carma says:

    @Mizun Chang

    We’ve been talking about that for at least 10 years but now it’s becoming mainstream which should tell us something indeed.

    Jim Willie talked about the gold note used in bilateral trade which actually is the ol school way of doing trade on a gold standard. Iran had to use gold to circumvent U.S. sanctions. Turkey has played a big part in that but I am sure there are some other channels too.

    China and Russia have been big gold buyers in the last decade seeing the writing on the wall but now all central banks are buying gold and a lot of countries have asked their gold back from the U.S. central bank. The gold they got back was not the same they put in custody which also should tell us something.

    But it’s a gradual process and the dollar won’t disappear entirely but will be worth less. All FIAT currencies suffer the same problem. What will be the alternative? People’s Bitcoin or some government cooked up crypto?

  8. Youri Carma says:

    FED

    Top Repo Expert Warns Fed Is Now Trapped: “It Will Take Pain To Wean The Repo Market Off Easy Cash”
    https://www.zerohedge.com/markets/top-repo-expert-warns-fed-now-trapped-it-will-take-pain-wean-repo-market-easy-cash

    GOLD

    Rickards: Here’s Where Gold Will Be In 2026
    https://www.zerohedge.com/commodities/rickards-heres-where-gold-will-be-2026

    CRYPTOS

    Gold Versus Bitcoin Debate Is Distracting Us From An Unfortunate Economic Truth
    https://www.zerohedge.com/crypto/gold-versus-bitcoin-debate-distracting-us-unfortunate-economic-truth

    BONDS

    First 10 Year Auction Of The Decade Is A Tailing Clunker
    https://www.zerohedge.com/markets/first-10-year-auction-decade-tailing-clunker

  9. Youri Carma says:

    U.S.

    ADP Employment Data Surges To Best Since April
    https://www.zerohedge.com/economics/adp-employment-data-surges-best-april

    US Consumers Unexpectedly Paid Down Credit Card Debt In November Even As Student, Auto Loans Soared
    https://www.zerohedge.com/economics/us-consumers-unexpectedly-paid-down-credit-card-debt-november-even-student-auto-loans

    Housing Data Consistent With A Recession In 2020
    https://www.zerohedge.com/personal-finance/housing-data-consistent-recession-2020

    Despite optimistic talk from Fed regional presidents, a St. Louis Fed study concludes Housing Indicators Remain Consistent With a Broader Slowdown in 2020.

    Earlier today I reported ISM Service Index Up, 11 Sectors Expanding, 6 Contracting.
    https://moneymaven.io/mishtalk/economics/ism-service-index-up-11-sectors-expanding-6-contracting-8rBwFfKQQUSi-gXScFMjHw

    But Guess What: Real Estate and Rental & Leasing are two of the sectors in contraction.

    Nine States Headed For Recession In Six-Months, Most Since Financial Crisis
    https://www.zerohedge.com/economics/nine-states-headed-recession-six-months-most-financial-crisis

  10. Youri Carma says:

    WWIII

    A MUST READ: The Deeper Story Behind The Assassination Of Soleimani
    https://www.zerohedge.com/geopolitical/deeper-story-behind-assassination-soleimani

    GLOBAL

    Baltic Dry Plunges Most Since 2008 As Tariff-Frontrunning Ends
    https://www.zerohedge.com/commodities/baltic-dry-plunges-most-2008-tariff-frontrunning-ends

    OIL

    Tanker Operators Suspend Travel Through Strait Of Hormuz
    https://www.zerohedge.com/energy/tanker-operators-suspend-travel-through-strait-hormuz

    Oil Crashes Back Below ‘Soleimani Dead’ Levels After Trump-Zarif De-Escalation
    https://www.zerohedge.com/energy/wti-extends-losses-after-surprise-crude-build

    NATURAL GAS

    Erdogan & Putin Launch TurkStream Gas Pipeline To Europe, Defying US
    https://www.zerohedge.com/energy/erdogan-putin-launch-turkstream-gas-pipeline-europe-defying-us

  11. Youri Carma says:

    TRADE WARS

    Top China Expert Has Doubts Over Trade Deal As Tensions Are “Getting Worse”
    https://www.zerohedge.com/geopolitical/top-china-expert-has-doubts-over-trade-deal-tensions-are-getting-worse

    China’s Vice Premier To Sign Trade Deal In Washington Next Week
    https://www.zerohedge.com/commodities/chinas-vice-premier-liu-sign-trade-deal-washington-next-week

    US Steps Up Pressure On UK To Abandon Huawei Ahead Of Decision
    https://www.zerohedge.com/geopolitical/us-steps-pressure-uk-abandon-huawei-ahead-decision

    Brussels Warns BoJo Full Trade Deal By Year’s End Is “Basically Impossible”
    https://www.zerohedge.com/geopolitical/brussels-warns-bojo-full-trade-deal-years-end-basically-impossible

  12. Youri Carma says:

    FED

    Fed Injects $83BN In Liquidity As Market’s Repo Addiction Getting Worse
    https://www.zerohedge.com/markets/markets-repo-addiction-getting-worse-latest-term-repo-operation

    Central Bankers “Have Infantilized The Business & Financial Investment Process”
    https://www.zerohedge.com/markets/central-bankers-have-infantilized-business-financial-investment-process

    Top Repo Expert Warns Fed Is Now Trapped: “It Will Take Pain To Wean The Repo Market Off Easy Cash”
    https://www.zerohedge.com/markets/top-repo-expert-warns-fed-now-trapped-it-will-take-pain-wean-repo-market-easy-cash

    GOLD

    Gold Spikes To Record High In Euros As Geopolitical Risk Rises
    https://www.zerohedge.com/commodities/gold-spikes-record-high-euros

    A New Gold Standard: Orderly Or Chaotic?
    https://www.zerohedge.com/commodities/new-gold-standard-orderly-or-chaotic

  13. Mizun Chang says:

    Contrary to financial pundits on the web with podcasts. China banks DID NOT collapse with defaults. Non Chinese source World Bank report China banks with profits for 2019yr. Lead by Currency/FOREX trading with a decrease in NPL’s.

    https://www.reuters.com/article/us-bank-of-china-results/profits-of-chinas-big-five-banks-hold-up-despite-lending-rate-squeeze-idUSKBN1X913I

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