8/8/2014 – A strong up day with the Dow Jones up 185 points (+1.13%) and the Nasdaq up 36 points (+0.83%).
As you very well know, psychological make up is incredibly important when it comes to making money in the market. If you would be interested in learning what the prevailing view on the Wall Street is today, watch the video below.
While Mr.Smith makes a number of ridiculous statements, I will address only two. At appears that he believes that the economy drives the stock market. The reality is quite different. It is the stock market that drives the economy. And you don’t have to go further than 2007-2009 to see this principal at work. The economy was booming as the stock market topped out on October 11th, 2007 and then proceeded to collapse. Even Bernanke was talking about how hot the economy was until the second quarter of 2008. And while the economic numbers continued to collapse well into 2010, the stock market was surging higher since the March of 2009. So, who is leading whom Mr. Smith?
Second, bull markets do not die of old age. Sure, that would be great if we were in a bull market. This is the mistake that 99.99% of all investors are unaware of. We are not in a bull market. We are still in a secular bear market that started in 2000 and that will end in 2017. The 2007-2009 correction was not a bottom. Rather, it was a mid cycle correction within a secular bear market. Same as 1972-1974, 1941-1942 and 1907-1908 corrections. In other words, another big decline is still in front of us.
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. August 8th, 2014 InvestWithAlex.com
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