Tuesday, July 10, 2018

Markets: "There's something wrong with our bloody ships today, Chatfield"

Comment of Admiral Beatty to his Flag Captain at the battle of Jutland after HMS Queen Mary blew up, 31 May 1916. It was the second of his ships to be destroyed in 25 minutes:
16:00 hrs-16:05 hrs, Indefatigable explodes leaving two survivors.
16:25 hrs, Queen Mary disintegrates, twenty survive.
2200 of his sailors vaporized.
Admiral Beatty was a bit of a dimwit so he was, of course, promoted, appointed First Sea Lord and granted an Earldom.

Although I had posted the story a few times previously, the most memorable usage was on September 15, 2008:
Things that make you go "Hmmm" (AIG; LEH)
Watching Lehman crossing on the tape at two bits. The world's largest property casualty insurer in the $5's. Hmmm. ...
"There's something wrong with our bloody ships today, Chatfield"
First up, the inspiration for the Battle of Jutland ramble:

FinViz (on blogroll at right)
And from Slope of Hope:

Well, surely you heard the news that Trump has ratcheted up the Chinese Trade War again:

Look, I’ve seen this movie before. I know how the story goes:
  1. Bears are about to lose hope since the market keeps going higher infinitely;
  2. Trump announces another salvo in the trade war;
  3. Market instantly plunges;
  4. Trump slips on a pink skirt and 38C bra and backpedals his threats;
  5. Market swiftly recovers to new lifetime highs.
Make no mistake, I’m short – – 54 positions – – and would love the market to fall 500 points every day until it was at 0 and every bull had committed a painful seppuku. Honest, I’d love that to pieces, since my hatred of bulls almost certainly exceeds that of Jews against Nazis, but I’m past hope at this point. It’s all a rigged game with no hope and no decency left. It will only end with apocalypse.
Expect Dow 30,000 in the morning. This is a sham, and I’m not getting hopeful anymore. Amazon with a p/e of 300 is just too damned CHEAP to pass up for John Q. Public, because he’s SO freakin’ smart....
Bitter, party of one... 

Kidding. We like Slope, and think he's right, today's downturn will become tomorrow's (or next week's) upturn.
Here's his homepage