Seasoned shoppers know that it’s often a bad idea to visit the grocery store on an empty stomach.
Not only are you likely to buy more than you should; your basic instincts will nudge you to purchase high calorie goods to “satisfy” your short term impulses. In the end, your wallet and health are likely to take a beating.
Right now, the stock market appears to be flooded with a chorus of hungry buyers. High octane and glamorous storied companies are flying off the shelves, despite often lacking in underlying nutritional value.
The flood of capital from global central banks has made us all very starved for yield, and WE WANT TO EAT.
As supplies from shelves get snapped up at a torrent pace, sellers have marked prices up and up. Yet shoppers continue on their buying frenzy, perhaps fearful that supplies will run out.
At some point, the supply-demand dynamic will surely snap back into balance. But for now, our central bank induced money printing era has left us with way too much “paper” chasing way too little sustenance.
Buyers are gorging on anything they can get their hands on. It doesn’t matter that they’re likely to suffer from indigestion (at best) - we must eat. But everything we’re currently eating (high in calorie, low in nutrition) does less and less to meet our nutritional needs.
And so week after week, month after month, we continue to flock the markets on an empty stomach.
Malicious sellers, looking to capitalize on this buying binge, have increasingly begun to offload subpar produce onto the general populace. This is increasingly evident across all asset classes and financial instruments - think SPACs, Crypto, IPOs, PE, VC - you name your alphabet soup. No matter the venue, buyers have appeared in hordes.
Although not evident today, many of us are well on our way to destroying our digestive tracts, as we reach for anything with a shiny package to put into our carts.
And as long as central banks artificially stoke our primal instincts, the frenzy continues.
Buyers beware.
Read the labels carefully and do your homework before throwing something into your shopping cart. You may be look slower and stupider than others around you who appear to be expertly snapping up produce from the shelves by the second.
But your stomach and general health will thank you in the long-run.
Great observation. Similar feeling. The FED is God sent for many.