Monthly News with Clifford Bennett

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MARKETS BEST SINCE 2012

This is fantastic. It really is! Most major bank economists and certainly the media are offering up falsehoods that we have not seen the likes of since 2012. What a great buying time that was, and so too will this heavy period be!

Good Morning,
Garfield? Am I reading the cartoon Garfield this morning on Bloomberg and CNBC? I usually find it in that far more respectable News Corp publication The Daily Telegraph. I have never met Rupert Murdoch, but I was meeting one of his director’s once in New York when he walked by. I have no doubt Garfield is one of his favourite sources of wisdom, and a cartoon he is very proud to have in his stable.

The point is Garfield is funny because of its wit and sarcasm, whereas the mainstream banks, brokers, and media today, are well just plain tragic, which is a form of humour I guess. The reason for my detour this morning is to try to get everyone “pattern interrupted” and thinking clearly again.

Read, watch and listen to those headlines again. Data was stronger than expected. So people sold?

That’s right. We have seen this before. I was very worried markets were wising up, but I guess it is the same people guiding the media every day and therefore, markets cannot wise up. They are held captive to stupidity. Fantastic! We saw this with the great fear of “tapering”. Remember. Oh no the data is looking good, this will mean the Fed reduces the stimulus, starts “tapering”. I am trying very hard not to use the “lol” expression here. It is like a carbon copy repeat. I forecast one of the sharpest rallies ever when “tapering” would start, and that is what we will see with rate hikes. Bring them on.

US factory orders for June came in nearly twice the expected strong performance of 0.6%, at 1.1%!

US ISM for services came is the best it has been since even in the great economic boom of the first decade of this century! Rising to 58.7!

So the market sells off because this could mean the Fed will hike rates from NEAR ZERO! Oh No! What a catastrophe. It really is hard to stay on your chair. Our whole society is dumbed down by the rapid repetition of simplistic slogans via the internet, and especially social media, but no sector on Earth seems as dumbed down as financial markets. The future is indeed bright for those looking to to “wisely” invest. Hardly anyone else is doing it!

China PMI for services is 54.2, and manufacturing is accelerating 51.7. This is an amazingly strong performance during a period of transition. The China economy is clearly very strong even with the weight of adjustment toward services and consumption, and including a gentle deflation of an over heated property market.

China’s services sector is at boom levels, and manufacturing is accelerating.

There were headlines yesterday that services stagnated, BUT YOU WERE LIED TO!
A small private sector survey of less than a third the size of the official data sampled at basically the exact same time, and excluding all the largest services companies, came in at 50.0. It is a small non-representative survey. That survey got that number, which is volatile and unreliable. What the services industry in China is doing, is an entirely different story. It is very strong indeed. The reason you may think services are in trouble is the same reason you may have falsely previously believed manufacturing was in trouble…. fear sells! So everything that can be ceased upon as a negative is greatly exaggerated.

THE FUNNIEST THING though is that now everything that is positive, strong as forecast here US data, is also being falsely twisted into a negative. this is so the audience can feel all intrigued and worried. We have breed a generation, the older generation, that feels a need to be superior through greater worry, and a younger generation that just wants to be excited about anything it can.

The reality is strong honest capable working and middle classes the world over out-smarting Wall Street types every day, continuing to achieve and improve their lives. This is why data from around the world is confirming this is indeed a prosperous time, and stocks are ridiculously cheap!

As I said yesterday, I was a little concerned those who are usually wrong were saying buy the dip alongside me. I was uncomfortable. So let’s really enjoy how heavy this market can be. We could be hours or a few days from the low, but just keep buying!

That’s what Garfield would do, while the dogs panic!

Clifford Bennett

 

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