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In Episode 142 of Hidden Forces, Demetri Kofinas speaks with Tony Greer, editor of the Morning Navigator and founder of TG Macro.

This episode begins with a clip from David Portnoy (a.k.a Barstool Dave or Davey Daytrader), in what is probably the most epic hype video ever created for stock trading.\xa0

Portnoy has come to personify not only the recent rip-roaring retracement in equities, but also, the philosophy that the stock market no longer bears any relationship to the real economy. \u201cIt took me a while to figure out that the stock market isn\u2019t connected to the economy,\u201d according to David Portnoy. \u201cI tell people there are two rules to investing: Stocks only go up, and if you have any problems, see rule No. 1.\u201d

Extraordinary monetary interventions remain the single most important causal factor for explaining this phenomenon (what we have referred to on this show as \u201cmarket nihilism\u201d). Whether investment flows are coming from passive funds or \u201cpassive people,\u201d what\u2019s important is that the allocators invest indiscriminately. As the popular fraise goes: \u201cAlways buy the fucking dip\u201d (#ABTFD)

In our past episodes with Mike Green, we have explored the role of systematic passive investment vehicles in driving markets higher. With the recent return of the retail investor an additional layer of passivity has been added. Not only are these investors seemingly \u201cprice inelastic,\u201d but they also exhibit a disturbing level of indifference to fundamentals that is qualitatively different from anything seen in past generations. Unlike the Gen-X and Boomer cohorts of 1999 who felt that they could see a future that others could not yet perceive, this generation of zoomers and millennials seems to feel that they have figured out something far more fundamental about how things work today. In their view, the notion that the stock market has any relationship to economic reality is laughable. Fundamentals can\u2019t hold a candle to Jay Powell and his money printer. Along with this realization comes a mocking, self-deprecatory celebration of aberrance. Indeed, going through r/WallStreetBets or wojack images on crypto subreddits exposes you to imagery that is reminiscent of a scene from the Island of Dr. Moreau.

In their 90-minute conversation, Tony and Demetri explore all of these themes. They discuss the recent rip-roaring retracement in equities and how the Federal Reserve, with its relentless money-printing has broken the economy, turned the stock market into a casino, and sown the seeds for a political crisis unlike any we have seen in more than a generation.\xa0

You can access the episode overtime, as well as the transcript and rundown to this week\u2019s episode through the Hidden Forces Patreon Page. This week\u2019s rundown is particularly helpful for anyone trying to follow along or who has not been properly exposed to the subjects discussed in today\u2019s episode.

All subscribers gain access to our overtime feed, which can be easily added to your favorite podcast application.

Producer & Host: Demetri Kofinas

Editor & Engineer: Stylianos Nicolaou

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Episode Recorded on 06/15/2020