These WTF Charts Of The Decade Will Lead To Sleepless Nights, If You Are A Bull
9/5/20018 – A mixed day with the Dow Jones up 22 points (+0.09%) and the Nasdaq down 96 points (-1.19%)
The stock market is behaving, more or less, as it should. If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here
Let’s start with just a few charts. To see the rest, which we highly recommend, please click on the link below.
http://realinvestmentadvice.com/fundamentally-speaking-q2-earnings-review-market-outlook/
If you have studied all of the WTF charts, the conclusion should be rather simple.
“This time is different” bullish war cry of the masses might very well represent the biggest “everything bubble” in human history.
If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here
Bullish Investors Insist: It IS Really Different This Time, Bears Are Idiots
The Great American Swindle: How The Rich Stole $30 Trillion By Destroying American Middle Class
9/4/2018 – A negative day with the Dow Jones down 12 points (-0.05%) and the Nasdaq down 18 points (-0.23%)
Every time Trump says MAGA I cringe. And not because I don’t want America to be ‘Great Again’, whatever that means, but because Trump’s actions are in direct contradictions to what he is saying.
For instance, Trump’s tax cuts did absolutely nothing to help your average American. The tax cuts went primarily to the corporates who in turn used the proceed for stock buybacks, making the ‘everything bubble’ infinitely bigger and of course, self enrichment. All while Trillion dollar deficits that will eventually lead to the great American collapse continue to pile up.
This article puts it all in perspective.
What Just Happened? $30 Trillion to the Richest White Americans Since 2008
Wealth statistics since the recession are provided in the Credit Suisse Global Wealth Databook. A summary of relevant data can be found here.
Post-recession data shows that about $33 trillion went to the richest 10%, who are overwhelmingly millionaires (13 million millionaires, 12.6 million U.S. households!). That nearly doubled the wealth of each member of the richest 10%. Average net worth is now $14 million for each 1% household, and the greater part of a million for even the ‘poorest’ household in the top 10%.
In comparison, average net worth for the poorest half of America decreased from $11,000 to $8,000 since the recession.
There is another description for all of the above.
One giant Ponzi Scheme, a swindle.
It is unfortunate, but most Americans do not understand that their wealth has been stolen from them and that their economy has been gutted in the process. They will, but that will happen in the midst of the next recession. I wonder if they will blame Putin.
If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here
Charles Nenner Issues A Stark Warning For The Stock Market: We Are Going To 5,000 On The Dow
Investment Wisdom Of The Day
Trump Begs The FED: Give Me More Juice For This Massive ‘Everything Bubble’- Back On Sept. 4th
PLEASE NOTE: THIS FREE INVESTMENT BLOG WILL BE BACK ON SEPT 4TH. OUR PREMIUM ANALYSIS GOES ON WITHOUT INTERRUPTION. CLICK HERE
8/21/2018 – A positive day with the Dow Jones up 63 points (+0.25%) and the Nasdaq up 38 points (+0.49%)
President Trump is in real trouble. And no, were are not talking about Mueller, Cohen or Monafort. We are talking about the upcoming implosion of the Trump’s ‘Everything Bubble’
You see, the sugar rush associated with Trump’s tax cuts to the rich/corporates (stock buybacks) and the weak dollar are wearing off. Understandably, the above was used to cover up massive imbalances of debt, speculation and crony capitalism. Unfortunately, this Ponzi Scheme of massive proportions is about to make its maker.
That is why Mr. Trump is so desperate and is now attacking the FED.
Trump Complains About Fed Rate Hikes: Expected Powell to be “Cheap Money Chair”
Trump, in an interview with CNBC, said he does not approve, even though he said he “put a very good man in” at the Fed in Powell. “I’m not thrilled,” he told CNBC’s Joe Kernen in an interview to air in full Friday at 6 a.m. ET on “Squawk Box.” “Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. But at the same time I’m letting them do what they feel is best.” “But I don’t like all of this work that goes into doing what we’re doing.”
Exclusive: Trump demands Fed help on economy, complains about interest rate rises
After leaving its policy interest rates at historic lows for about six years after the 2008 global financial crisis, the Fed began slowly raising rates again in late 2015.
Trump said China was manipulating its yuan currency to make up for having to pay tariffs on imports imposed by Washington. “I think China’s manipulating their currency, absolutely. And I think the euro is being manipulated also,” Trump said.
“What they’re doing is making up for the fact that they’re now paying … hundreds of millions of dollars and in some cases billions of dollars into the United States Treasury. And so they’re being accommodated and I’m not. And I’ll still win.”
Watch Out Dollar Bulls: Trump’s Criticism of the Fed is Getting Serious
This puts investors in-between a rock and a hard space.
On one end: the Fed’s continuing to tighten – which is bullish for the dollar.
‘Real’ interest rates (inflation minus nominal rates equals the real rate of interest) are still near zero – maybe slightly negative.
And because of this, the Fed’s rate hikes haven’t caused the ‘tightening’ in the economy many expected.
Thus, until the Fed achieves their 3% rate target by the end of 2019 – or until U.S. growth plummets – expect them to continue hiking.
But on the other end: Trump’s worried about the strong dollar and continues criticizing The Fed’s tightening – both which are bearish for the dollar.
If the Fed continues raising rates – or if the dollar continues being, as Trump calls it, “overvalued” compared to U.S. trading partners – Trump may personally step in.
Our view remains the same, President Trump has dug his own grave associated with everything bubble and must now lay in it. Here is why…
In simple terms, it is too late. The bubble is too big, the yield curve is already flat enough to cause a recession, Trump’s trade war is idiotic and damaging to the US, interest rates will keep going higher, the dollar is too strong, the bullish spirits are running at peak levels and if that wasn’t bad enough, the Democrats have a very good chance of winning in November.
Let us step away from the fundamental analysis for a second, something we have beaten to death here over the last few months, and answer the question from our TIMING and MATHEMATICAL perspective.
Our cyclical composition of various markets suggests the following.
The FED will continue to hike interest rates until the yield curve inverts (nearly there) and causes a recession. The simple truth is, they have no choice as they need to reload for the next recession. The US Dollar will continue to much higher levels. Not immediately, but don’t be surprised to see the DXY at $99 or above within a year.
Further, inflation will vanish into thin air, only to be replaced by deflation. Trump’s ill timed trade war will be disastrous for all involved and the stock market will crater. Once again, the above is based on the cyclical composition of various market.
If you would like to find out exactly when all of the above happens, based on our timing and mathematical work, please Click Here.
Trump Jawbones The FED And The USD, Dollar Crash Next?
Peter Schiff certainly thinks so (video below), but we don’t buy it. We called the US Dollar bottom earlier the year and we still holding our long position. Can Trump’s Attack On The FED & The USD Keep This Bull Market Alive? That is to say, our target high hasn’t been reached, yet.
Investment Grin Of The Day
The $250 Trillion In Worldwide Debt: Forget Economic Collapse, War Is The Only Possible Outcome
Another mixed week with the Dow Jones up 356 points (+1.40%) and the Nasdaq down 23 points (-0.29%).
You can very much argue that recent oscillations in the stock market are driving both bulls and bears up the wall. What the market gives is then very quickly taken away. A flood of articles throughout the week were discussing which case was holding more water. Most were highly supportive of the bullish side, but it is not as easy as they make it out to be. On the contrary, the juncture we find ourselves at today is incredibly complicated.
If you would like to find out what the stock market will do next, both in price and time, based on our mathematical and timing work, please Click Here.
Just think for a second how staggering this number is, $250 Trillion in Global Debt. By comparison Global GDP is just north of $80 Trillion while the total global stock market capitalization is just about $100 Trillion. Let’s explore this further……
The Looming Economic Collapse: The $250 Trillion Dollar Worldwide Debt Crisis
As governments raise taxes to cope with their unending spending habits, people are increasingly being forced to supplement their own income with loans. And according to most financial experts, this debt problem is so big that it will usher in a global economic collapse of epic proportions.
According to the Institute of International Finance’s latest Global Debt Monitor, the amount of debt held in the world rose by the biggest amount in two years during the first quarter of 2018. It grew by $8 trillion to hit a new all-time high of $247 trillion, up from $238 trillion as of December 31, 2017. And that’s up by $30 trillion from the end of 2016.
Global debt is staggering to the point most of it will never be repaid and as governments continue their spending sprees and the debts keep mounting, the future of the economy looks bleak. There is more than enough economic data out there to show there could be an economic collapse and stock market crash in 2018. Bill Gross stated in 2017 that “our highly levered financial system is like a truckload of nitroglycerin on a bumpy road”. One wrong move and the whole thing could blow sky high, wrote the Epic Economist. Once this bubble pops, it will fling the globe into a financial crisis of epic proportions never before seen.
Here is what everyone is missing about this staggering amount. It can never be repaid, that is a mathematical certainty.
As result, world governments only have only a few options at their disposal. First, they can attempt to inflate away their currencies in a controlled fashion. That is what everyone is trying to do today, more or less unsuccessful, as everyone is playing the same game.
Second, they can default on the debt. Such drastic actions typically lead to economic collapse and subsequent depressions for the underlying countries. Very few would even consider such a step as very few countries can survive such a drastic measure. Although, Iceland did show us that it is possible.
The final option is some sort of a global debt or economic collapse/reset. The argument goes the Governments can’t control such an occurrence and the market will do it for them. As accurate as that description might be, such a collapse will lead to an all out global war.
We are already seeing early stages of this war developing. For instance, tariffs, Trump’s trade war, massive military budget, NATO, multiple proxy wars, etc….all point to the same conclusion.
Yes, the world has reached peak debt and there is no easy way out. Unfortunately, any sort of an economic collapse should be the least of your worries. An all out war, yes, nuclear war between the world superpowers will be the only possible outcome.
Luckily for you, we know exactly when this nuclear world war will start. If you would like to learn more, please Click Here.