Now that the FED's member banks can now own and trade equities thanks to the repeal of the Glass Steagall Act in 1999- the stock market is now behaving just as irrationally as everything else.
Today I tried to find the Empire State Manufacturing Index on CNN Money. They didn't even have a headline on it. Why? Well because it was a huge miss at -7.72.
And the market is up 150 points. No other news.
Other than retirement funds, captured 401ks (thanks to the 30% IRS penalty), and banks- who would buy American equities? Answer- nobody. Well unless of course, you think those 30 million jobs are coming back or that the U.S. is on the verge of another industrial boom...and that somehow that 15 trillion debt we owe is going to get paid off with someone else's money.
In the 35 years I have followed and studied markets- I have never seen anything like this. We have a Frankenstein Government that has given birth to a Frankenstein Stock Market. I feel like I am living in some alternate "matrix" universe where bad news is ignored and good news is trumpeted loudly.
Interestingly enough, from the repeal of Glass Steagall to now- some 12 years later, the market is lower. It appears to have peaked. Just like Japan did in 1989.