The many cries of the Spacmonster who lived on YouTube and CNBC did not save it. The bald bull throwing guy could not rescue it with his bovine scattology. The rantings of the S&P 5800 nut job on afternoon Bubblevision could not even get a decent bounce today after a rally of 400 points in the morning.
Yet the death of bull markets is often marked by small events which have larger macroeconomic implications.
Such as the choice of making car payments, buying groceries, or just putting clothes on the kids back instead of dropping $1499 for cell phone.
The bull market died with this headline broadcast loudly by Bloomberg and everyone who paid attention tonight:
The big chief, the head honcho, the big enchilada just dropped a bomb on the markets. If demand is truly faltering does this means earnings estimates are overly optimistic? Probably. Which also means the current price level of $151 is way too high and has broader macroeconomic indications also.
If Apple can not meet its sales goals, how can Tesla? Ford? Samsung? The list is endless because it is indicative of inflation crushing demand for hot products to a point where consumer basics become the choice over luxury goods.
No more spending like the Kardashians, no more squandering money for that $10,000 Disney Groomer vacation, nothing. Which means the economy is about to come to a shockingly hard landing which the Fed is trying to avoid but knows is inevitable and must be implemented or face a hyperinflationary depression which is far, far worse.
As I warned just a little over three weeks ago in a Zero Hedge comment:
The insanity did indeed begin. Liquidity is vanishing, margin calls are happening, and mass liquidations of portfolios to move to cash and safety has been occurring. Yet the stock honks who want to sell retail dupes their garbage so they can get out continue to promote the Fed pause theory or the “light” recession idea to save their asses.
The problem they have is the music:
Now that it has stopped, the last thing the bulls have is what happens to every one of them as they are shipped to Amarillo or Friona, Texas.
The crash is upon us. Hedge accordingly.
(For the record, this author moved everything into overnight US Treasury instruments two weeks ago. The risk-reward picture is too dangerous for my family’s future and my retirement. This could spiral into an international financial and credit crisis any moment now without warning.)