Welcome to the Asynchronous Reality Show, a term( full disclosure not coined by me unfortunately) used to describe the cognitive dissonance currently exhibited by some parts of the Capital Markets, particularly public equity markets. The gap between reality and perceived reality is commonplace on Wall Street even in normal times, and one has to remember that $7Trillion in stimulus ($3Tln Federal Government and $4Tln in Fed Backed and unbacked purchases) makes for one hell of a party.
However, a glance at the chart shows what one might term the real economy as measured by the S&P GSCI commodity (denominator)index versus the S&P (numerator), lets call it the hope and a prayer versus the ugly truth chart. The sharp increase in the chart would infer that investor hopes (aided by that friendly $7Trillion) aren’t paying much attention to the bloodbath in the real economy, most notably the action in Crude Oil.
The Informed Contrarian 