Morning Market Report: Feb. 28th, 2024

These were two headlines one after the other this morning on Marketwatch:

There's a point at which the financial media's desire to pander to every market perspective merely serves to generate mass confusion. The chance that the average investor survives this last and largest superbubble intact is extremely low. One of the ironic things that Warren Buffett said over the weekend with respect to "casino-like" markets is that at the end investors will expect a bailout and they neither deserve one, nor will receive one:

"The Berkshire CEO noted that when the scene then “turns ugly,” and speculators lose money during a market meltdown, they shouldn’t expect a helping hand—or justice—either."

Let's go back to 2008:

"Paulson, Bernanke and New York Fed President Timothy Geithner emphasize that their actions were intended to aid Main Street by rescuing Wall Street"

After that call to Paulson, with bank bailout assured, Warren Buffett bought a very large stake in Goldman Sachs, a position which made a massive profit.

Speaking of which, I've noticed recently a major bifurcation taking place in the financial sector, specifically between regional banks which are languishing under fears of another bank run, versus Wall Street brokers. Here we see that the correlation is now negative and the lowest since the crash in February 2020:

It appears that Warren Buffett sees another bailout in the cards.