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

“INDEPENDENT” CENTRAL BANKS = TOTAL B.S.

Headlines:
1. Monetizing Sovereign Debt = “Blows Up” Central Bank Independence Argument.
2. To The Contrary…Central Banks + Sovereigns = Partners In Monetary High Jinks.

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This Whole Idea That Central Banks Are Fire-Walled From Political Influences = Such A Crock Of S _ _ T.

That Fantastical Idea Was Flushed Down The Toilet With The Onset Of Quantitative Easing + ZIRP.

It Is So Obvious…Yet Frequently Denied By Both Central Bankers + Politicians…What A Joke!

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It All Comes Down To This Very Basic Question…

Who Benefits The MOST From Quantitative Easing + ZIRP?

The Answer = Sovereign Governments…As Interest Costs On Their Debt Are…At The Very Least…Significantly Diminished And…At The Most…Virtually Eliminated.

And With This Very Elementary Fact…The CONFLICT = Established.

And It Is NOT Debate-able.

No Matter The Initial Intent Of Central Bank Policy [QE + ZIRP]…The Resulting Consequences…Have Landed The Global Economy In This Awkward State.

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Awkward State…You Might Ask?

Isn’t All Well With The Global Capital Markets?

The Short Answer = Yes…For Now…But Requires A Simple Proviso.

All Would NOT Be Well…If Not For $35T+ In Money Production [by central banks] To Support Sovereign Debt Markets.

Without That $35T…Public Finance Markets Would Be Priced Woefully Lower And Sovereign Governments Would Be Drowning In Interest Payments On Their Substantial Debt.

So It Would Seem…Central Banks + Sovereigns = Immoral Partners In Their Own Scheme.

Their Rationale…However It Is Articulated = 100% Irrelevant.

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At Least The Federal Reserve “Attempted” To “Normalize” Their Balance Sheet…But Naturally Failed…As They Could Only Manage To Trim Back 18% Of Their Aggregated Purchases Since 2009…Despite Much Rhetoric…Over A Decade…That “Normalization” Would Painlessly Proceed.

In Contrast…The Bank Of Japan And The ECB Never Had The “Sack” To Even Attempt Normalization…Serially Gorging On Their Region’s Sovereign Debt…And Other Securities Too i.e. Corporate Debt + Equity ETF’s.

The Bank Of China Elects To Increase Liquidity Through Other Measures i.e. Reserve Ratio Cuts + Flooding State Owned Banks With Yuan…Different Tactic But Same Basic Liquidity Strategy.

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And The Global Capital Market Distortions Are Countless + Surreal.

i.e. Fiscally Irresponsible Greece + Italy + Spain [G.I.S.] Pay A Lower Rate Of Interest On Their Debt Than The United States Despite Lower Credit Ratings And Looser Fiscal Standards.

The Accepting + Penalized Sovereign Fool In This Scenario = Donny T’s United States Of America…

Essentially Powerless To Counteract Draghi’s ECB Policies…That Indirectly Punish The U.S. [despite it’s own fiscal woes]…For The Economic “Sin” Of Fiscally Towering Over The Fragile Financial Structures Of Puny, Irrelevant And ECB Subsidized G.I.S.

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There Are So Many Other Capital Market Examples Like This…It Is Plain Laughable.

Currency Manipulation Comes To Mind…It May Be Even Worse…i.e. SNB’s Chairman Jordan Shamelessly Flaunts Deliberate Manipulation Of The Swiss Franc…While The Bank Of Japan’s Kuroda Boldly + Obtusely Denies QE’s Impact On The Yen’s Value.

Even The Film “Mike And Dave Need Wedding Dates” Is Not This Comically Absurd…You Can’t Make This Stuff Up.

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Of Course…What Both Central Bankers + Politicians Will Likely NEVER Tell You = THE TRUTH.

Because THE TRUTH Is Too Painful For The World’s Delicate Bureaucratic + Elitist Snowflakes…Including Donny T…But I’ll Take A Stab At It.

The Bottom Line = As The Globe’s Population Both Slows + Ages …Aggregate Demand Decreases…And As Aggregate Demand Decreases …Ceteris Paribus…Prices Head South…Including Capital Market Prices.

Thus…The $35T In Newly Minted Dollars, Euros, Yen + Yuan Are Intended To Substitute For The Demand Shortfall…Which Is Primarily Funded By Sovereign Deficit Spending…Then Completely/Promptly Absorbed By Central Banks …Miraculously Underwritten By Their Printing Presses…In Order To Maintain And/Or Increase Prices…Because A Trend Of Sustainably Decreased Prices [hence central bank inflation obsession] Disrupts The Capital Market Status Quo.

And A Disrupted Capital Market Status Quo Likely Leads To Disrupted Geo-Political Status Quo.

And A Disrupted Geo-Political Status Quo Threatens The Existing Sovereign Power Elite Position…And No Sovereign EVER Voluntarily Cedes Power.

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Therefore…The Money Printing Solution Intends To Maintain The Capital Market Status Quo…But Is Exceptionally Desperate + Loaded With Risk …As It Softly Endorses The Concept That Capitalism Has A Soft White Under Belly…And Is Susceptible To Outright Death…Unless The Currency Printing Presses Run 24×7.

It’s The Wild West Of Economics…There Are No Rules…Other Than To Prevail…At ANY Cost…Where Poor Economic Behavior Is Rewarded…NOT Penalized…i.e. $13T+ Of Negative Yielding Sovereign Debt…A Central Bank Delivered Reward For Irresponsible Sovereign Economic Policy.

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Ultimately Though…The Geo-Political Status Quo Will Shift…But Until Then…And It Could Be A While…So Many More Trillions Will Be Newly Minted.

The Last 10 Years Are…Ironically…Just The End Of The Beginning For A New Era Of Economic Policy =

Central Banks + Sovereign Governments In Cahoots To Maintain The Economic Mirage That Capitalism Is Bullet-Proof + Utopian.

Think About It…Global Economic Stability Is Almost Universally Dependent On Sovereign Debt Monetization Financed By The Limitless Central Bank Money Trees…Entirely Sanctioned By The Entrenched Political Power Structures.

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Contact The Author: Dominate@GlobalSlant.com