ETF report for the month of April 2012.
Stocks turned down in April 2012 on the exhaustion of the world central bank’s monetary authority. The US Federal Reserve’s monetary policies, and the ECB’s monetary policies have exhausted; they is they no longer provide stimulus for economic growth and trade. And they have turned toxic by providing too much credit which has caused debt deflation, that is currency deflation in Brazil and India. Finally too much hot money flow burned out these economies and now the Brazilian Real, BZF, and the India Rupe, INR, are falling in value, and investors are fleeing Brazil Banks, BRAF, and India Banks, EPI. Much can be the same of Argentina. whose banks have lost significant amounts of capital, resulting in Argentina trading lower.
Excessive credit was one of the reasons for the first great depression, particularly too much municipal credit, as well as speculative investing.
The global government finance trade has finally run its course, and investors today, April 30, 2012, ceased their momentum investing. The risk on trade turned to risk off, as risk appetite turned to risk avoidance, and investors sold out of stocks world wide, as is seen investors selling out of the stocks in this Finviz Screener of 50 Momentum stocks; these lost 1.1% on the day.
I expect the fastest fallers in May 2012 to be EUFN, RZV, PKB, COPX, ITB, EWX, PSP, XBI, XRT, XSD, EPHE, and EWD.
The fiat money system is dying and the diktat money system is rising in its place. The Banker regime of Neoliberalism featured wildcat finance a Doug Noland term, where bankers waived magic wands of debt creation. But the Beast regime of Neoauthoritarianism features wildcat governance, where leaders threaten with clubs of debt servitude.
Capitalism’s dynamos of choice, growth and profitability are winding down, and the regional global governance dynamos of diktat, security, stability, and sustainability are winding up, as investment capital is being replace by political capital.
Capitalism was based on the Milton Friedman Free To Choose floating currency script; but Regional Global Governance is based upon the vision of Angela Merkel for a “true European Economic Government”, as called for in July and August of 2011, in Joint Communique with Nicolas Sarkozy.
Soon EU leaders will meet in summits and waive national sovereignty and pool regional sovereignty and all those living in the Euro zone will be residents in a gulag of debt servitude and totalitarian collectivism.
VT -1, VTI -.5, IWM -1.5, EWJ -4. JSC -3, EWP -11, EWI -8, VGK ,-2,
EWZ -7, INDY -4, RSX -7, EEB -4, EEM-2, EWX -3
EWD -2, ARGT -11, SCIF -6, CNDA -2
EUFN -7, BRAF -10, EPI -5, RWW, -9, KRE, -2
CHIM -?, REMX -6, URA -5, COPX -5, PSCE -2, WCAT -4
FONE -9, XSD -7, IGN -6, XTL -6, SKYY, -4, GRID -3, RZV -3, SLX -2, PSCI, -3,
GDX -6, GDXJ -5, SIL -4,