11/10/2015 – A mixed day with the Dow Jones up 28 points (+0.16%) and the Nasdaq down 12 points (-0.24%)
A couple of interesting things to consider here today. First, here is how most investors today think. The next 1000-point down day is coming
For those worried about a financial collapse who keep yelling “global debt,” we are not on the cusp of another financial collapse. There is simply too much available money in the world and more at the ready whenever anything remotely resembling a collapse threatens. Remember, don’t fight the Fed? Well, don’t fight the Bank of Japan, European Central Bank, People’s Bank of China and any number of other central banks either. If they have to monetize (socialize) half of the planet’s debt and worry about inflation later, that’s what they will do. Mind you, I’m not arguing that’s right, I’m just saying it is reality.
I would tend to agree, but don’t make the mistake of believing the stock market cannot have a big down leg here. It can and it will
The stock market is a function of multiple TIME cycles oscillating within its composition. Meaning, when the time is right, the stock market will decline. No matter what the FED or the Bank of Japan do. It is just as much about investor psychology as it is about liquidity and valuations..
Now, not that we need another confirmation point, but here you go…..
The article attached to this chart suggests that the FED will raise interest rates to take away the proverbial “punch bowl”. After all, they don’t want things getting out of control.
I am sorry to pop anyone’s bubble, but things are already out of control. All time high in consumer credit is yet another data point to suggest that we are in a massive financial or speculative bubble. The time to take this punch bowl away was 3 years ago. The FED has missed the boat. Now, it will have to collapse under its own weight.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. 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 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. 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. Noveber 10th, 2015 InvestWithAlex.com
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