According to this novel hypothesis, mass unemployment, record deficits, small business obliteration, and soaring corporate debt are all factors that make stocks more attractive. If this all works out, we can look forward to the next global pandemic buying opportunity. I'm sure Redditors are hatching a global Ebola epidemic as I write.
Per the post-pandemic hypothesis, there is now a *new* category of investment called "Value Momentum". What used to be two polar opposite investing strategies have now been morphed into one gigantic Ponzi momentum chase. In other words, there is no longer such a thing as value investing.
Incidentally, the fund company that manages the MTUM ETF is Blackrock, the world's largest ETF issuer and overall money manager.
Maybe they will add their own stonk to the fund to get some momentum going:
The Fed, for their part has done everything possible to avoid the Minsky Moment by making the bubble far bigger by promising unlimited liquidity forever. The ubiquitous belief that attends this lunacy is that as long as the Fed never raises short term rates, the market can't explode. The fact that the Fed has already imploded the long-term bond market apparently doesn't matter. In other words, the stock market is now in an upward momentum feedback loop that will only end when the bubble spontaneously explodes at all time highs.
Unfortunately, the Treasury Secretary almost caused the Minsky Moment today when she accidentally told the truth:
Risk markets were not very happy with the news, because they had assumed that Fed liquidity would flow until happily ever after. However, the bond market appears to be pricing in an inevitable tightening which would ironically be bullish for bonds as it would reduce inflation expectations.
If the thirty year yield breaks key support, then the ultra-crowded cyclical trade will be the next domino to fall. Needless to say, no one is expecting that to happen.
"RISK OFF"
And then there will be no "momentum" left in the casino. And without momentum, Ponzi schemes collapse very quickly and of course unexpectedly.
