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- (1/2) Global stock markets are now nearly as oversold as at the market low in October 1987. Expect a powerful and tradable rally of 20% or so from here. Cover all shorts and go long the most oversold stocks. However, do not expect new highs.
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Tuesday, January 5, 2016
The Economy of the Star Wars Galaxy [small spoilers]
I enjoyed the new star wars movie, but I couldn't shake a certain sense of disappointment that I couldn't place until thinking about it later. It eventually came to me that what was missing from the movie was actually economic prosperity! The end of The Return of the Jedi was so exciting because both Darth Vader and the Emperor had been killed, leading to impromptu mass celebrations in streets all over the galaxy. Beings everywhere were apparently experiencing a new found sense of freedom and optimism about the future. Flash forward 30 years to the new movie, and what improvements do we see? Zero. For all intents and purposes the general standard of living of the populous appears exactly the same - which might as well be considered negative when considering the opportunity costs of all that time passed. I mean a droid built by Annikin 60ish years ago is still in regular use with no obvious upgrades? The millennium falcon is still a match for newly built star ships? Han is still a small time hustler and Leia is still in fatigues tromping around from planet to planet directing individual battles? Work for food arrangements still survive? Color me disappointed. The story was compelling, but in my heart of hearts, I don't think George Lucas would have let the familiar trump the possible like J.J. did.