THE ANSWER = 6.2588…WHAT IS THE QUESTION?

Headline:
Economic + Financial Market Holy Grail?

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First…Clues To The Answer Of 6.2588

1. 6 Month Increments = Jan 1 – June 30 + July 1 – Dec 31.
2. Total Return = 188.8190% [NOT Including Dividends].
3. Largest 6 Month Return = 20.6550%.
4. Largest 6 Month Draw-down = 7.3588%.
5. Up Months/Down Months = 90/30.
6. Largest 6 Month Sharpe Ratio = 3.8742.
7. Smallest 6 Month Sharpe Ratio = -.6750.

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The OBVIOUS Answer =

What Is The SPY Linear AVERAGE Return…Calendar 6 Month Increments…1.01.10 -12.31.19?

To Reiterate…6 Month Average Returns Of 6.2588 Over 10 Years Compound To An Aggregated 188.8190% Return On Base Capital.

Combine Those Returns With A Spectacularly High 6 Month Sharpe Ratio Average Of 1.0978…Indicates That Those Sparkling Returns Were Achieved With Not Too Much Risk…aka The Holy Grail Of Risk Adjusted Return Profiles…As…

It Would Be Extremely Challenging To Engineer Such A Successful Investment Model…Over 10 Years…But Then…Most Models Did Not Input The Unpredictable Variable Of $40T Of Central Bank Produced Global Liquidity.

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The Sub-Text To This Data = Welcome To Economic Socialism…aka Infinitely Dour Forward Guidance + Serial Interest Rate Suppression + Plentiful Quantitative Easing.

So It Seems…The U.S.A. Acronym…In An Economic Sense…Might As Well Indicate…”United Socialists Of America.”

And So…Much More Money Production Is Still To Come…As Any Cessation Of Monetary Printing + Stimulus = Financial Market Disaster = Global Economic Catastrophe.

Thus…ECONOMIC + FINANCIAL PAIN HAS ESSENTIALLY BEEN FORBIDDEN…As Central Bankers…Are “Over-Sighted” By Legislators Salivating At Central Banks’ Endless Appetite For Mountains Of Sovereign Debt…Produced By Those Same Legislators.

The New Investing Mantra = “Hold Your Nose + Buy…Anything/Everything.”

The Universal Belief = Central Bankers Will ALWAYS Bail You Out…As Chair Powell Has Capitulated To The Easy Money Policies Of Predecessors Yellen + Bernanke.

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BTW…Remember The Concept Of “Moral Hazard”…

Forget About It…As Money + Wealth Perpetually Trumps “Morals”…And “Hazards” Are Now Simply Verboten.

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So…To The Billions Of Central Banker Fanatics…Please Do Recall Howard Cosell’s Wise Words…

If Ignorance Is Bliss…Then You Must Be Ecstatic.

Inevitably Though… That Feeling Of “Ecstasy” Will Be Overwhelmed By The Realization Of Being ROYALLY SCREWED By The Market’s “Invisible Hand” When This Equity Bull Is Mercilessly Slayed By It’s Inflationary Achilles Heel.

Because…You Can’t Just Grow The Balance Sheet Forever…Or Even Plateau It At A Monumental Level…When Inflation Gains Traction.

But As Central Bankers Have Successfully Proven Over The Past Decade…They Can Surely Try…And Mightily Try They Will.

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Contact The Author: Dominate@GlobalSlant.com

S&P “48” = 50% OF S&P 500 INDEX

Headline:
Imbalanced SPX.

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So Much For Diversification Within The S&P 500…As The Top 48 Tickers [as of October 11, 2019] Comprise Just Shy Of 50% Of S&P 500 Equity Market Capitalization.

Of Course…Loaded With Technology Companies [41.96% of Top 48].

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Check Out The 48 “Heavy-Weights” Below…

48 Largest = 49.7564% Of SPX.
452 Others = 50.2436% Of SPX.

Top 2 Tickers = 8.3962% Of Index
Top 3 Tickers = 11.3151% Of Index
Top 8 Tickers = 19.2427% Of Index
Top 17 Tickers = 29.4473% Of Index
Top 29 Tickers = 39.6344% Of Index
Top 48 Tickers = 49.7564% Of Index

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MSFT 4.3260
AAPL 4.0701
AMZN 2.9189
FB 1.7978
BRK.B 1.6554
JPM 1.5067
GOOG 1.4903
GOOGL 1.4774
JNJ 1.4062
V 1.2406
PG 1.2295
XOM 1.1841
T 1.1141
HD 1.0424
VZ 1.0057
MA 0.9994
BAC 0.9826
DIS 0.9503
INTC 0.9362
CVX 0.8944
MRK 0.8761
UNH 0.8531
CMCSA 0.8382
KO 0.8322
BA 0.8132
PFE 0.8104
CSCO 0.8019
WFC 0.8005
PEP 0.7805
WMT 0.6938
MCD 0.6440
C 0.6425
MDT 0.5856
ABT 0.5710
ADBE 0.5480
CRM 0.5315
COST 0.5310
IBM 0.5131
ORCL 0.5082
NFLX 0.5026
TXN 0.4926
PM 0.4921
AMGN 0.4886
PYPL 0.4849
HON 0.4774
ACN 0.4772
NKE 0.4767
UNP 0.4612

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So It Seems…The S&P 500 Is…Now…Primarily A Proxy For Technology.

Might As Well Merge The SPY With The QQQ…As Performance Is Now Virtually Identical…And Has Been For Quite Some Time.

Technology Stocks = The New Market Beta.

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Contact The Author: Dominate@GlobalSlant.com