How investing in the stock market, like the Fyre Festival, could end up in disaster

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Welcome to Wall Street’s version of the Fyre Festival. Or, as Vincent Deluard of INTL FCStone puts it, the “faking-it economy,” where you’ll find capitalism...

Or, as Vincent Deluard of INTL FCStone puts it, the “faking-it economy,” where you’ll find “capitalism without capital” and “employers without employees.”

Take a look at this chart, which shows what the “death-by-Amazon” effect is doing to the retail sector, where valuations are dominated by the likes of “immaterial” companies, that act as market places rather than makers, like EBay EBAY, +0.52% , Amazon AMZN, +0.50% and Booking BOOK, +0.31% . Now, he sees the script being flipped. “The prospect of another round of monetary insanity may result in a last heroic surge for the immaterial sector,” he wrote.The market The Dow Jones Industrial Average DJIA, +0.10% , S&P 500 SPX, +0.02% and Nasdaq Composite COMP, +0.17% are all leaning slightly higher in the early going. Gold GCQ19, -0.05% is also seeing a slight uptick, while oil CL.1, +0.42% is down. The dollar DXY, +0.37% is holding steady.

The quote “Why don’t they go back and help fix the totally broken and crime infested places from which they came. Then come back and show us how it is done” — President Trump, talking about four congresswomen in a series of tweets that were widely slammed as being racist. Needless to say, the comments erupted across Twitter:We've heard this our whole lives. Now we hear it from the Oval Office.

 

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