The Contrarian

“In the investment markets, what everyone knows is usually not worth knowing.”

What Others Write:

Bill Holter, Holter-Sinclair collaboration (Jim Sinclair’s blog)

Jim Sinclair became very well-known and successful as a leading investor in the late 1970’s. His associate wrote the following:

Please understand this, “policy” and central banks are doing whatever they can to keep investors away from the exit door because they know there isn’t one.  Central banks all over the world are “buyers” of nearly all things paper, do we really have “markets”?  Anywhere?

In the US bull market of the last six years 91% of corporate earnings have been spent on stock buybacks and dividends. Buybacks have been the only significant source of buying power. All the money created by the Fed is just sitting in bank reserves, used for buying Treasuries and for speculation in derivatives.