The mirage of progress

As traders ramp the Dow waiting for more liquidity assurances from the US Fed this afternoon, key companies and commodities servicing the real economy continue to turn lower and warn of contracting global demand.  The following chart captures the “great disconnect” between the headline stealing Dow at a record high and economic bellweathers like Caterpillar, Fedex, UPS, and copper all materially lower. But then again, who needs customers when traders have the Fed recycling the mirage of tax-payer funded cash through banks and equity markets…

Chart source: Cory Venable, CMT, Venable Park Investment Counsel Inc.

This entry was posted in Main Page. Bookmark the permalink.