InvestWithAlex.com 

Weekly Update: Marc Faber, FX Bloodbath & Upcoming Bear Market

Daily Chart January 16th

1/16/2015 – An up day with the Dow Jones up 190 points (+1.10%) and the Nasdaq up 63 points (+1.39%).

The stock market continues to perform exactly as forecasted. If you would like to find our what happens next, please Click Here. In the meantime, a number of things to consider over the weekend.

Marc’s fundamental view of our current economic environment is right on the mark. I couldn’t agree more. Unfortunately, his timing has been terrible over the last few years. As a result of predicting a massive bear market since about 2011. Has he thrown in the towel?

Not by a long shot, but his timing and his ultimate S&P target might backfire…..once again. In terms of timing and missing a large down move. When perma bears such as Marc Faber suggest that the market is about to surge higher, the maximum bearish pain threshold is hit and the time might be right to go short. That is too say, don’t wait for 2,500.

By now everyone should be familiar with what the Swiss did with their Swiss Franc, its impact on currency/financial markets and complete devastation they have caused throughout FX industry. As a result, everyone from Goldman Sachs to a typical day trading grandmother suffered massive losses.

There are two simple lessons here. 

First, don’t try to be on the same side of the trade as everybody else. It rarely pays. On the contrary, the probability of it blowing up in your face is typically high. Just as we saw. Second, don’t use leverage. Countless speculators, including 2-5 large FX brokers were literally wiped out. I am sure we haven’t yet heard about all the damage the move caused. In many cases capital that took years and even decades to accumulate, was destroyed in a matter of minutes. In other words, don’t leverage up 1:100 and expect good things to happen. Sooner or later you will get destroyed.

A good overall look at why smart investors should anticipate a bear market sooner rather than later. An article definitely worth your time. Think about it in the following fashion. Those who outright dismiss even the slightest possibility of a bear market, despite a 5.5 year bull market cycle, might soon find themselves with large losses. Just as they did in 2008. Yet, those who a smart enough to prepare will be able to avoid losses and even profit.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. January 16th, 2015  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Weekly Update: Marc Faber, FX Bloodbath & Upcoming Bear Market Google

Should I Invest In Twitter (TWTR)? – Daily Podcast

Visitor Question: Should I Invest In Twitter? – Daily Podcast – Listen to our short 5-10 minute podcast to find out. Plus, don’t forget to email me your questions.

TWTR

z33

Should I Invest In Twitter (TWTR)? – Daily Podcast Google

Dreaming Of Another Housing Bubble

housing bubble

According to CNBC, real estate is almost back to normal Housing is about 75% back to normal. My response is……keep dreaming. Those who participate in financial markets very well know that nothing moves up or down in a straight line. Meaning, what we are witnessing today in real estate is an intermediate top and a roll over into a 3rd leg down. The same leg down we saw in the stock market between 2007-2009. Consider the real news.

In the early October of 2013 I came out with a startling forecast. At that time I have suggested that the “Dead Cat  Bounce” in the real estate market from 2010 bottom was now over and that the real estate market was about to embark on a massive leg down. Again, not that dissimilar to what had happened in the stock market between 2007-2009 (mid cycle panic). I have also suggested that while it will be hard to see initially because all real estate is local, by the time we get to 2015, the upcoming real estate disaster should be evident to everyone. (you can search the blog from October of 2013 to verify this)

Well, now it is Case-Shiller Home Prices Tumble Most Since Dec 2011, Miss 2nd Month In A Row

When I first forecasted this mid cycle panic in real estate most market participants have assumed that I was on some sort of cocaine binge or have simply gone insane. A typical reaction. Yet, if you are interested in learning what will happen in the real estate market I highly recommend my report Real Estate Collapse 2.0 Why, How & When   What happens next will make the 2006-2010 decline in real estate prices look like a joke.

Z31

Dreaming Of Another Housing Bubble Google

If North Korea Was Analyzing Financial Markets

Daily Chart January 15th

1/15/2015 – Another down day with the Dow Jones down 103 points (-0.59%) and the Nasdaq down 69 points (-1.48%). 

I thought I have heard every bullish argument until I have heard this. Get this, despite the Dow being up 8.17% and the Nasdaq being up 14% in 2014, apparently we had a “stealth correction” during the year. Better yet, because of this stealth correction the stock market is about to push much higher. Just as it did after 1994. The stealth correction investors missed

“Looking back at 2014, what was overlooked—and what was glaring to us—is that the S&P 500 had this great year but most stocks didn’t have as great of a year. This is the stealth bear market we are talking about. Your average median stock, specifically the small and mid-caps, had a much more sideways year. Yet if history is a guide, that may be the prelude to a great 2015 for stocks all around.”

“This is actually very reminiscent of the behavior we saw in 1994 where there was a similar ‘stealth bear market’ in a lot of small- and mid-cap stocks,” he said. “Back in ’94, small caps underperformed for most of the year. And then something important happened late in the year—there was a divergence in activity where the small caps fell to a new 52-week low and the S&P 500 did not. There was a subsequent reversal and that really helped stage the next leg of the advance.” -Oppenheimer & Co.

Nice try, even North Korea would be proud of the nonsense above.  There are multiple problems here.  First, we had a real correction in 1994 where the Dow declined 12% top to bottom. Second, we had a strong positive year in 2014 that had nothing to do with 1994. Cyclically or otherwise. Finally and most importantly, 1994 marked the beginning of the final 5-year bull market blow off cyclical run in the overall 1982-2000 secular bull market. Today, we are still in a secular bear market that will only complete in 2017.

That is to say, the premise above is a whole lot of baloney. There will be a big correction off today’s bubble levels and those who believe otherwise will take a major beating. Just as they did in 2008.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. January 15th, 2015  InvestWithAlex.com

z51

Should I Invest In Penny Stocks? – Daily Podcast

Visitor Question: Should I Invest In Penny Stocks? – Daily Podcast – Listen to our short 5-10 minute podcast to find out. Plus, don’t forget to email me your questions.

z33

Should I Invest In Penny Stocks? – Daily Podcast  Google

Why Bitcoin Remains A Speculative Mess Not Worth Your Money

bitcoin - chart

I have been warning people to stay the hell away from Bitcoin since its spectacular run up into December of 2013. Since then, the “currency” is down over 80%. Yet, despite its big decline, my overall opinion hasn’t changed. At the end of the day Bitcoin still has a real possibility of going to ZERO. Let’s take another look.

Is Bitcoin a legitimate currency, a speculative investment or the future?  This is a complex matter to discuss as there could be an infinite number of arguments made for or against it. However, here are some basic points to understand…. 

1. Understand that Bitcoin is still a pure speculation at this stage. There is nothing to back it up and there is nothing to assign any sort of fundamental value to it.   As such, speculate away, but know that while it can appreciate significantly it can also go to zero in no time.
2. The US Government can crush it at will and at any time. Yes, I know that it cannot be controlled by the government, it is independent and out there on the net. However, don’t be a fool.  The US Government, if it really wants to, can destroy Bitcoin in a matter of hours.
3. There is very little volume and the total value as a currency is very low. While that can be an advantage when the currency is going up, good luck trying to get out of it while it is heading down.  Plus, the fact that people in China see it as an investment vehicle now is a huge negative red flag.

Basically, there is no fundamental value to invest in Bitcoin at this stage. While it can appreciate significantly, know that all gains would be out of pure speculation. I repeat, there are no fundamentals to back it up.  On the flip side, it can go to zero either because of speculation or if the US Government decides (for whatever reason) to pull a plug on it. In other words, continue to stay away.  

Z30

Why Bitcoin Remains A Speculative Mess Not Worth Your Money Google

Commodities Slump Suggests Upcoming Stock Market Disaster

Daily Chart January 14th

1/14/2015 – Another down day with the Dow Jones down 189 points (-1.07%) and the Nasdaq down 22 points (-0.48%). 

The stock market continues to behave exactly as forecasted. During both rallies and sell-offs. If you would like to find out what happens next, please Click Here. 

After trying to surge higher the Dow had quite a reversal over the last 12 trading hours. Down over 650 points. Luckily, financial media is starting to ask all the right questions.

Are commodities and interest rate collapse signalling a massive recession ahead? Is the FED now irrelevant? Take a look at the video below, its worth 5 minutes of your time.

As you have probably ascertained by now, I hate the FED with passion. It is a massive cancer that is eating at our underlying economic base from the inside out. Just as Japan did to their economy over the last 25 years.  And that’s the biggest mistake most investors out there make. They believe the FED will be able to backstop any sort of a correction or sell-off….”buy the dips”.

Nothing could be further from the truth. The FED is powerless now that the interest rates are at ZERO. Plus, today’s massive stock market bubble almost assures that all large future moves will be to the downside. To be honest, the best one can hope for is that the upcoming sell-off is not as big as 2007-2009.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. January 14th, 2015  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Commodities Slump Suggests Upcoming Stock Market Disaster Google

I Believe The Stock Market Is Random & Impossible To Predict. Your Reaction? – Daily Podcast

Visitor Question: I Believe The Stock Market Is Random & Impossible To Predict. Your Reaction?– Listen to our short 5-10 minute podcast to find out. Plus, don’t forget to email me your questions.Long Term Dow Structure35

z33

I Believe The Stock Market Is Random & Impossible To Predict. Your Reaction? Google