Monday, April 14, 2014

Barry Ritholtz and His Readers Need The EPJ Daily Alert

By Chris Rossini

Without a solid understanding of Austrian Business Cycle Theory and an eye on the Fed's monetary machinations, one can feel like a lost sheep when observing the markets.

Take Bloomberg View's Barry Ritholtz for example. He believes that when it comes to the markets:
We know little, understand less and hate to admit it most of all.
Well, I guess that's one way to look at things.

Ritholtz received some push-back from readers:
But some of you dismissed my premise that humans really don’t know why markets are doing what they are doing. Instead, you offered up a series of rational explanations. What follows is the most coherent of those arguments.
Ritholtz then listed the reasons that his readers provided for the recent downturn in the markets: hedge-fund selling, U.S. bull market is five-years old, Slowing earnings, April 15, China slowdown, Ukraine concerns, Valuation, & Technicals.

A perplexed Ritholtz sums it up by saying:
All of these raise the most important question: Why now? Why 2014's retreat after a scorching 30-percent-plus gain in 2013? If any of the above explanations were the basis for a report last year recommending that you sell stocks then, would you have paid attention?

All of this comes back to our original premise: The day-to-day, week-to-week action is random.
Notice something missing? If you're an EPJ Daily Alert subscriber, you sure do!

How about the Fed? Is it pumping money at a faster or slower pace? And how does the Austrian Business Cycle Theory provide guidance?

If Barry & his readers were were subscribers, they wouldn't be so perplexed, and would have been taking profits before the recent break in the markets. And, more importantly, they would have understood why.

Ritholtz has to be careful though. Understanding the Austrian Business Cycle Theory would immediately put up a red flag at Bloomberg. He'd risk getting a pink slip. We all know that Fed machinations are off limits.

But his readers don't have that worry.

They should subscribe to The EPJ Daily Alert right away!

Chris Rossini is on Twitter


  1. Well done Chris!

    EPJ needs to go after shysters like him..they use data to sound intellectually sophisticated but are quacks..also they try to take the "middle-ground" to sound "reasonable". The ABCT educated folks have no issue seeing through this deception, however lots of otherwise supersmart apolitical folks fall for it hook, line and sinker.

    1. Austrian Business Cycle Theory is horse shit. Always predicting recessions, inflation, financial collapse. It's pure horse shit. So long as there is fractional reserve banking, there is no good economic news or if there is good news, it's fake.

      Doomsday any day now because the Bible is not dictating economic policy. LMFAO