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. 

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. 

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. 

10/31/2018 – A positive day with the Dow Jones up 241 points (+0.97%) and the Nasdaq up 141 points (+2.07%) 

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. 

The bulls are breathing a sign of relief after a 1,100 point rally on the Dow over the last two days. The “Dip” is in and the market is about to surge….right? Either way,  your day trading grandma is still fully invested as we try to ascertain what happens next.

U.S. HOUSEHOLDS LOADED UP ON STOCKS

Outside of the 2000 dotcom bubble, U.S. households have never had more of their assets invested in the stock market.

The U.S. stock market, i.e., the S&P 500, soared back to new all-time highs again today – always a welcomed development for investors. And it is especially welcomed now considering the fact that investors are loaded up with stocks at the moment. That information comes courtesy of one of our favorite investment related statistics.

From the Federal Reserve’s Z.1 release, we find that U.S. Households had a reported 34.3% of their financial assets invested in the equity market as of the 2nd quarter. Outside of a slightly higher reading in the 4th quarter of 2017, that is the highest level of stock investment in the 70-plus year history of the series, other than the 1999-2000 bubble top.

The above is consistent with numerous other indicators we have looked at before. For instance, Shiller’s Adjusted P/E Ratio is at 32 (double the mean) and arguably at the highest level in the stock market’s history (if we adjust for 2000 tech distortions).

The margin debt is nearly 2.5 times higher than it was at 2007 top and numerous bullish sentiment indicators are flashing an all time long-term highs.

In other words, despite October’s sell-off everyone is still long, strong and on margin at the highest valuation level in the stock market’s history. What can possibly go wrong? 

We might have an answer.

If you would like to find our exactly what the stock market will do next, based on our mathematical and timing work, in both price and time, please Click Here