How the Song of the Summer Explains the Markets

Analyzing the top news stories across the web
July 15 2014 9:47 AM

How the Song of the Summer Explains the Markets

zervos1

YouTube

This post originally appeared in Business Insider.

It's kind of debatable what the “song of the summer” is this year. There's no obvious pop-hit winner like last year's “Get Lucky.” But one song you hear over and over again right now is “Turn Down For What,” by DJ Snake and Lil Jon, which prominently features Lil Jon screaming “TURN DOWN FOR WHAT!” over and over.

Advertisement

Anyway, what you might not have realized is that the song is a perfect metaphor for what's happening in the market these days, at least according to Jefferies market strategist David Zervos.

In his note to clients Monday, Zervos explains the gist of the song, “It’s basically a song about keeping the party going, with Lil Jon singing over and over again - ‘Fire up that loud/Another round of shots’.”

“Lil Jon is essentially asking, why should we stop the party - why should we ‘turn down’?,” Zervos continued.

And well, this is exactly what the bulls are thinking these days. Central banks are being accommodative and there's nothing on the horizon that the party should turn down for. Janet Yellen is still doling out the shots, and in fact, now there are signs that economic growth is becoming self sustaining.

And while Lil Jon is responding to haters demanding the party stop, the market has its haters too. These haters are the people who never got into the party, and always had some reason why it had to end. And each time it was ridiculous.

Of course we will still have to put up with hater drivel from the other side of the red velvet rope. These folks never entered the club over the last 5 years, or came in briefly and left way too early. They never partook in the Jell-O shots - they just simply “turnt down”…and for what? For a make believe US fiscal policy crisis, a make believe peripheral European crisis, a make believe Chinese trust product crisis, and the list goes on!!! But most importantly these folks “turnt down” because they never believed in the true reflationary power of QE. Instead they consistently looked for some reason for the party to stop in order to justify the fact that they never participated in one of the greatest risk-on raves in history. Sad!

Now, says Zervos, the haters are praying for some Portuguese bank collapse or a CPI spike that causes a sudden tightening. But for now, there's just no reason to turn down.

Joe Weisenthal is the executive editor of Business Insider. Follow him on Twitter.

TODAY IN SLATE

Politics

Talking White

Black people’s disdain for “proper English” and academic achievement is a myth.

Hong Kong’s Protesters Are Ridiculously Polite. That’s What Scares Beijing So Much.

The One Fact About Ebola That Should Calm You: It Spreads Slowly

Operation Backbone

How White Boy Rick, a legendary Detroit cocaine dealer, helped the FBI uncover brazen police corruption.

A Jaw-Dropping Political Ad Aimed at Young Women, Apparently

The XX Factor
Oct. 1 2014 4:05 PM Today in GOP Outreach to Women: You Broads Like Wedding Dresses, Right?
Music

How Even an Old Hipster Can Age Gracefully

On their new albums, Leonard Cohen, Robert Plant, and Loudon Wainwright III show three ways.

How Tattoo Parlors Became the Barber Shops of Hipster Neighborhoods

This Gargantuan Wind Farm in Wyoming Would Be the Hoover Dam of the 21st Century

Moneybox
Oct. 1 2014 8:34 AM This Gargantuan Wind Farm in Wyoming Would Be the Hoover Dam of the 21st Century To undertake a massively ambitious energy project, you don’t need the government anymore.
  News & Politics
Politics
Oct. 1 2014 7:26 PM Talking White Black people’s disdain for “proper English” and academic achievement is a myth.
  Business
Buy a Small Business
Oct. 1 2014 11:48 PM Inking the Deal Why tattoo parlors are a great small-business bet.
  Life
Dear Prudence
Oct. 2 2014 6:00 AM Can’t Stomach It I was shamed for getting gastric bypass surgery. Should I keep the procedure a secret?
  Double X
The XX Factor
Oct. 1 2014 5:11 PM Celebrity Feminist Identification Has Reached Peak Meaninglessness
  Slate Plus
Behind the Scenes
Oct. 1 2014 3:24 PM Revelry (and Business) at Mohonk Photos and highlights from Slate’s annual retreat.
  Arts
Brow Beat
Oct. 1 2014 9:39 PM Tom Cruise Dies Over and Over Again in This Edge of Tomorrow Supercut
  Technology
Future Tense
Oct. 1 2014 6:59 PM EU’s Next Digital Commissioner Thinks Keeping Nude Celeb Photos in the Cloud Is “Stupid”
  Health & Science
Science
Oct. 1 2014 4:03 PM Does the Earth Really Have a “Hum”? Yes, but probably not the one you’re thinking.
  Sports
Sports Nut
Oct. 1 2014 5:19 PM Bunt-a-Palooza! How bad was the Kansas City Royals’ bunt-all-the-time strategy in the American League wild-card game?