A negative week with the Dow Jones down 576 points (-2.21%) and the Nasdaq down 159 points (-2.14%)
As we have been saying for some time, the stock market finds itself at an incredibly important juncture. Things are about to move. 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
Just a few weeks ago we pointed out how two world class idiots, Obama and Trump, were fighting over who is truly responsible for the “Everything Bubble”
Trump was absolutely correct in labeling Obama’s economy as a massive bubble during his Presidential campaign. Too bad he proceeded to “re-imagine” it with his tax cuts and MAGA nonsense. Something he will pay dearly for over the next few years. Then again, the can always blame the FED and/or democrats.
And while a little late to the party, yet another fool would like to take credit.
Powell credits Fed policy for the US economy being ‘in a good place’
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Federal Reserve Chairman Jerome Powell said the U.S. economy “is in such a good place right now” and credited monetary policy for helping to engineer that growth.
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He also cautioned markets that every Fed meeting from now on will be “live” for the possibility of an interest rate hike.
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On the global economy, Powell said there has been “a gradual chipping away” at growth.
In other words, none of these geniuses have any idea of what they have done or what is to come. Allow me to summarize…….
Obama/Yellen/Bernanke team juiced the stock market/economy with zero interest rates for nearly nine years, including multiple rounds of QE. When the Trump team came in they have decided to add fuel to the fire with their late cycle tax cuts.
And the result?
Arguably the biggest asset bubble in human history. The Everything Bubble. I say arguably because only 2000 market valuations were higher (see chart below). Yet, at that time most of the bubble was concentrated in money losing tech companies, hence the higher P/E ratio. Today, the bubble is across the board and in all asset classes.
To summarize, the ones in power have no idea of what they have done and/or what is to come. And instead of trying to figure out how they will deal with all of the above, they are running around and taking credit for Trump’s “Best Economy In The History Of Humanity.”
This will all end in tears.
Like we have said before, it is not a question of if, but when. If you would like to find out exactly when the stock market will crater, in both price and time, please Click Here
