Off your game?
Read our free, updated as of Mar 3, 2022, Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
Meet Dr K !
Chris Kacher
  • Nuclear physicist
  • Stock & crypto market wizard
  • Blockchain builder
  • Bestselling author
  • Top 40 charted musician
  • Biohacker
  • Former computer hacker
Your email will always remain private.

Market Lab Report - Premarket Pulse 3/11/16

Major averages finished yesterday flat to lower on higher but below average volume. The ECB lowered interest rates once again which sent markets higher at first. But when the ECB president said he sees no need for further rate cuts, markets reversed hard serving up another roller coaster of a day as they then clawed back some of their losses by the close to finish midbar.

With the Eurozone's inflation rate falling to -0.2% in February, deflation is staring Europe straight in the face. The failure of QE to stimulate global economies is due primarily to the purchasing of government debt instead of corporate debt while raising taxes as much as possible to pay for QE.

In 1913, the Federal Reserve was established with the directive to buy only corporate debt, never government debt, to stimulate the economy. Thus, when banks were reluctant to lend, the Fed would buy the corporate paper and that would prevent rising unemployment by stimulating growth in corporations. But then World War I came along in 1914, and directive of the Fed was changed so they would start to buy government bonds. The directive was never undone.

With the three types of inflation - asset, demand, and currency inflation - only government debt serves to eventually increase asset inflation while devaluing the currency. Only corporate debt can increase demand inflation which is a true sign the economy is recovering.

In the meantime, negative rates and deflationary conditions are in the offing while the global economy desiccates.

Futures are up around 1% as oil continues to rebound, closing in on $40/barrel. The rip tides this year caused by quantitative easing vs. the loss of confidence in central bank policies are pronounced.

Indeed, it is easy to feel the markets are behaving in an absurd manner as the rip tides play out. But it goes to show that governments rule the day in excessive fashion.

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
Copyright ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy