by Charles Hugh Smith
Of Two Minds
With only 56 trading days and fewer than 80 calendar days to the election, the Deep State camps seeking to torpedo Trump’s re-election have reached the do-or-die point.
Back in June I speculated that the only way the Deep State could deep-six Trump’s re-election was to sink the stock market rally, which the president has long touted as evidence of his economic leadership.
Since then, stocks have lofted ever higher, with the Nasdaq index hitting new all-time highs and the S&P 500 reaching its pre-pandemic heights of euphoria.
So far, there’s nothing to support my thesis other than the Federal Reserve’s balance sheet, which has declined modestly over the past 11 weeks, from $7.165 trillion on 6/3/20 to $6.957 trillion on 8/12/20, more or less idling in neutral. This same neutral stance set up the late-February crash.