10/6/2014 – A down day with the Dow Jones down 17 points (-0.10%) and the Nasdaq down 21 points (-0.47%).
The stock market continues to behave exactly as anticipated. CLICK HERE.
It is a well known fact that the stock market always attempts to fool as many people at once as possible. For instance, the geniuses who have been LONG over the last few years will be viewed as absolute fools by the time 2016 rolls around. And vice versa.
The question is, what is one thing that 100% of investors and even the FED charlatans agree on? That’s right, the fact that interest rates will rise in 2015. U.S. Fed’s Dudley says would be ‘delighted’ to raise rates in 2015
What if everyone is wrong. I have been arguing for at least a year that FED will not be raising rates. I am so confident in my view that I have loaded up on a 10-Year Note on January 4th, 2014 while advising my followers to do the same. If you are wondering, it has been one of the best trades of the year. Outperforming the Nasdaq by a fairly big margin and blowing the Dow completely out of the water. In fact, I continue to believe the 10-Note will retest its 1.5% yield as no 30 year bull market in yields will end without retesting its lows. It is as simple as that.
Now, most people won’t believe that it would be possible for the FED not to raise rates in 2015. Maybe, but let me ask you this. Would the FED dare to raise rates if the stock market finds itself 30-40% lower and with the US Economy in an official recession? No way in hell. If anything, they will be desperately reintroducing the QE and trying to re-inflate the markets. Impossible? I think we are about to find out.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. 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 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: 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. October 6th, 2014 InvestWithAlex.com
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