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Investment Wisdom Of The Day
Taleb Explains Why The World Is More Fragile Today Than in 2007
Investment Grin Of The Day
Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave In A Deflationary Collapse
A positive week with the Dow Jones up 582 points (+2.35%) and the Nasdaq up 189 points (+2.63%)
The stock market finds itself at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
President Trump just posted the following image. Just a few hours after he, in his GAME of Thrones joking fashion, has plunged millions of hard working Iranians into poverty and despair. And under false pretenses I might add.
Now, consider the following……
Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave
It’s obvious that higher prices will “work” alongside the Fed’s rate hikes to help dampen the United States economy further. Not only that, but higher prices could cause even more damage if the Fed sees raising rates as the main solution to inflation exceeding its expectations.
Diane Swonk, Grant Thornton’s chief economist, previewed what will happen next best: “We might see a pop of inflation in the first quarter.”
Once that happens in what is already a rising rate environment in which the president has made it clear he is solidly against any more Fed tightening, we wonder just what Powell’s next move will be when even higher prices force his bluff?
Here’s why you just have to shake your head at Trump’s BS.
First, Trump is taking credit for arguably the biggest financial bubble of all time. Sure, it felt wonderful at 2000 and 2007 tops, I was there, but it sure as hell didn’t work out well for those involved, nor the US Economy. .
Second, it is true, Trump’s idiotic trade war will bring higher prices across the board for the things Americans buy on the daily basis. All while wages stagnate. We have brought Trump’s attention to the Trade Deficit – Economy – Stock Market relationship before, that they tend to move in the same direction, but I am afraid our warning felt on deaf ears.
Finally, when the Trump collapse finally hits, as it surely will, you will see a massive deflationary spiral in real assets (stocks, bonds, real estate) and inflationary pressures in the stuff you actually need to buy. Call me crazy, but I don’t see how that’s winning.
Well, perhaps you can call it winning if one’s objective is to drive this country into an absolute economic disaster. Make America Grumpy Again.
If you would like to find out exactly when the stock market will crater, in both price and time, based on our timing and mathematical work, please Click Here.
David Stockman Explains Why Trump Is An Economic Lunatic – Collapse Coming
Investment Grin Of The Day
Junk Bond Market About To Blow Sky High – Will The Stock Market Follow?
11/1/2018 – A positive day with the Dow Jones up 265 points (+1.06%) and the Nasdaq up 128 points (+1.75%)
The stock market finds itself at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
MISH had an excellent write up about the present state of the Junk Bond Market. We highly encourage you to read it in full.
Junk Bond Bubble in Six Images
The conclusion is rather simple.
When the junk bond market does blow, it is nearly guaranteed to take equities with it. That’s the scary thing about the recent equity selloff.
The junk bond market selloff has barely started and so has the accompanying stock market decline.
We couldn’t agree more. If you would like to find out exactly when the stock market will crater, in both price and time, based on our timing and mathematical work, please Click Here.