The Era of Financial Illiteracy

The last few years have very clearly indicated to any remotely competent and capable market observer or participant, that the majority of the investor and trader collective have lost their minds and that they are, as a collective, utterly insane.

What are the signs of this collective insanity? They areĀ – in no particular order of importance – the rise of the fraudulent crypto-currencies, the insane use of government bonds as “zero risk balance sheet tools”, absurd valuations of the stock markets which have shot up even as the underlying profits have largely remained mired, the huge number of lossmaking stocks currently traded even on major stock markets, as well as the ridiculous notion that budget deficits simply don’t matter and can be expanded indefinitely. These utterly moronic ideas have then, through reflexivity, created a large amount of totally false signals, 2nd degree errors if you will, most notably picked up by the largely corrupt socialist politicians of today and used as justification to create a huge bubble in government debts.

The rest of this commentary is exclusive to our clients, and will be released publically at an as-of-yet undetermined future date.