Phase Shift?

By: Gordon Long & John Rubino | Sat, Oct 18, 2014
Print Email

Does the Current Market Volatility Signal A Trend Change in Sentiment?

Phase Shift?

31 Minutes, 49 Slides

Gordon T Long poses three questions for debate with John Rubino regarding the current Geo-Political Event Risks and Macro Economics developments:

  1. Are the risks in fact bigger and more serious problems than we were seeing while the market was going up?

  2. Could it actually be a matter that investors are reacting differently because underlying mood / sentiment has changed for some reason?

  3. Are we unknowingly now over focusing on the Geo-Political Event Risks and Macro Economics developments as a result of the market going down (maybe for other reasons like reduced liquidity flows that no one is presently talking about - yet)?

John steps the discussion through risks such as: 1-the Islamic State, 2- Ebola, 3- The Strong $$$, 4- Japan & Europe, 5- Junk Bonds and 6- The"October" problem to illustrate that though the problems are more serious the real shift is in perceptions. He suggests that a phase shift occurs when "new headlines suddenly begin to seem both oppressive and really, really numerous, the public starts to feel that maybe we're not okay after all!"

New Phase

John suggests that the public is justified in being both confused and nervous because of the degree of market manipulation going on which has distorted price discovery, the pricing of risk and has allowed malinvestment to be hidden by continued roll-overs of every increasing levels of debt. He feels it will end, but it is impossible to know when - just that it will.

Gordon points out that the Federal Reserve still has more ammunition ready to go. He illustrates this with the recent derivatives contract signed between the Fed and the US option exchanges and well as the $300B Reverse Repo account "locked and loaded" in anticipation of any market correction that might ignite a potential cascading collateral collapse. This has the potential to change sentiment from fear to greed once the much needed bond rotation is complete.

Additionally, Gordon feels that though the central bankers are no doubt nervous they have not reached the dangerous point where they panic and pull out all the stops to protect the implosion of an over indebted and financially repressed system.

Central banks Desparate Stage Still Ahead

With the aid of 49 slides, this 31 minute video covers a lot of ground in an easy to follow dialogue.





Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

Copyright © 2010-2017 Gordon T. Long

John Rubino

Author: John Rubino

John Rubino

John Rubino

John Rubino edits and has authored or co-authored five books, including The Money Bubble: What To Do Before It Pops, Clean Money: Picking Winners in the Green Tech Boom, The Collapse of the Dollar and How to Profit From It, and How to Profit from the Coming Real Estate Bust. After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a currency trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He now writes for CFA Magazine.

Copyright © 2006-2017 John Rubino

All Images, XHTML Renderings, and Source Code Copyright ©