Up is down, black is white, dogs and cats love each other. It seems, much to my chagrin and that of many others, Ken Fisher is right once again. A review by Bloomberg of companies in the S&P 500 that should benefit from Bill Gross’s concept of “new normal” are faring worse than more traditional auto and mining companies that would comprise the “old normal,” or business as usual. Many sectors, specifically auto and related companies, received huge government subsidies (gargantuan is more like it), and are out on top this earnings season.
It is possible; dare I say it? Has Bill Gross, Mohammed El-Erian and every other CFA, Wharton grad fund manager fallen for Sir John Templeton’s four most dangerous words (hint: “It’s ______ this time”)? Will we look back as everything rights itself and realize it happened exactly as it should in accordance with every other downturn dating to the Tulip Bubble and the beginning of time? We’ll soon know. For now, I’ll curl into the fetal position under my desk.