Insight from one of my favourite analyst,Advance GlimpseToday...

Insight from one of my favourite analyst,

Advance GlimpseToday ,
is giving prudent investors an advance glimpse of things to come if massive borrowing stops.Talks between Pelosi and Mnuchin broke down when Mnuchin rejected Pelosi’s offer to split the difference on stimulus. Mind you this is temporary and both sides want to borrow a tremendous amount of money. The only thing that happened is that Mnuchin, at least for the time being, wants to borrow less money. To understand what happened as a result, take a look under the cover and not on the indexes such as DJIA.

The dollar rose.Interest rates rose.Momo tech stocks got sold by smart money.Smart money sold oil.Gold was sold.Silver was sold.Other commodities were sold.It is worth remembering this is the result of just a slight delay and slightly less potential borrowing when both sides want to borrow heavily. In the meanwhile, printing presses are working full time at the Fed.Imagine the carnage in the stock market, especially momo tech stocks, if borrowing and printing presses stopped. No worries — politicians will take a second look at the election time table and after a short moment of sanity on the part of Mnuchin, they will start running amuck again inflating the bubble.