McCullough: Bernanke Channels Nero

Takeaway: This is the first 2013 US stock market “correction” that I will not be buying because of Ben Bernanke.

Editor's note: Forbes published an opinion piece written by Hedgeye CEO Keith McCullough earlier this morning. The following is an excerpt. Please click on the link at the conclusion to continue reading.

 

McCullough: Bernanke Channels Nero - im1

 

Central planners have been clipping coins and devaluing the The People’s hard-earned currency for at least two thousand years.  The Roman Emperor Nero of course devalued the Roman currency for the first time in the Empire’s history.

 

...If you don’t understand the history of un-elected politicians devaluing currencies, you have some reading to do. Most people who aren’t paid not to “get” it understand this now. Self-education is the best long-term path to avoid becoming a lemming.

 

Look, I’m not that smart. Most people who have seen my SAT scores would agree. But I work hard and I recognize that Mr. Market is a very smart cookie. What I tend to get on a lag, is what Mr. Market is telling me to get. Unlike our Fed Chief, I don’t wake up every morning trying to bend economic gravity.

 

Ben Bernanke believes he can “smooth” gravity, economic cycles, etc. He’s basically telling the entire bond, currency, and stock markets that they are all wrong. So let’s stop, rewind the tapes and go to the score – what have markets done since Bernanke decided not to taper?

 

Click here to continue reading on Forbes.

 

McCullough: Bernanke Channels Nero - im2

(Image courtesy of the Bureau of Labor Statistics)

 


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