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Dream Big & Speculate Away

Daily Chart April 14 2015

4/14/2015 – A mixed day with the Dow Jones up 60 points (+0.33%) and the Nasdaq down 11 points (-0.22%).  

Everyday I attempt to bring you a few more data points in order to illustrate that we are in a massive financial bubble. We have two more today. First, Mr. Cramer.

Cramer: Go for it! Dream big for your portfolio

Where Mr. Cramer tries to convince me that I am just not intelligent enough to understanding proper valuation techniques.  You see, its not that Netflix, Facebook, Twitter, Alibaba, etc…. are overvalued, I am just too stupid to understand how to value them properly.

Cramer thinks that some stocks are undervalued simply because investors just can’t think big enough and imagine what could happen in the future. And there could be big bucks in store if investors try to think outside of the box.

So, dream big and buy on margin. After all, it appears we live in a world where valuations no longer matter. Call me crazy, but I think Mr. Cramer had the exact same view at 2000 and 2007 tops.

Second, about a month ago Mark Cuban brought up the issue of a massive venture capital bubble and its illiqudity. I wrote about it earlier What Most People Don’t Know About Mark Cuban’s Bubble Call. It also important to note that the same bubble exists in today’s private equity funds. Well, at least in their attempts to take this junk public at incredible valuation levels (watch the video below).

That is to say, the game of musical chairs continues to intensify. In both private and public markets. When will it stop? Based on my work, we do not have that much, if any, time left. Big losses are ahead.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. April 14th, 2015  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Dream Big & Speculate Away Google

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Scary: Is The Nasdaq Building A Head And Shoulders Pattern?

Technicians often fear the head and shoulders pattern as it entails trouble ahead. So much so that the pattern often shows up right before some sort of a big decline starts. With that in mind, the Nasdaq might be developing one right now. Take a look at the chart below and decide for yourself. At the very least, pay attention. Just FYI.

nasdaq head and shoulders

Z31

Scary: Is Nasdaq Building A Head And Shoulders Pattern? Google

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Is The FED Planning To Abolish Cash?

cashless societyIn an attempt to gain complete control of our financial system the FED needs an additional tool. The ability to set negative interest rates in order to tax the currency. We might as well be a stone throws away from someone at the FED actually proposing this notion as CITI’s own economist believe it’s a splendid idea.

Citi Economist Says It Might Be Time to Abolish Cash

Their plan entails…..

  • Abolishing currency.
  • Taxing currency.
  • Removing the fixed exchange rate between currency and central bank reserves/deposits.

I am truly speechless here. Apparently it is not enough that we are already suffering through the worst FED induced Ponzi Scheme in human history. They now want the FED to abolish cash in order to induce negative interest rates.  To fight deflation, to induce even larger asset bubbles, to gain full control control of the population, etc…

Just imagine how high the stock market will go if the fools above are able to set interest rates at, let’s say, -6%. Yet, as we are about to find out, the bigger the bubbles the bigger the eventual consequences will be. You cannot rewrite the laws of physics and that is precisely what they are trying to do here.

Perhaps I will end this with the following statement, echoing the NRA. I just hope that most Americans are smart enough to realize the same.

I’ll give you my cash when you pry it from my cold, dead hands. 

z33

Is The FED Planning To Abolish Cash?  Google

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Why The FED Has No Clue

Daily Chart April 13 2015

4/13/2015 – A down day with the Dow Jones down 81 points (-0.45%) and the Nasdaq down 8 points (-0.15%). 

The stock market continues to behave as forecasted. If you would like to find out what happens next, please Click Here.

Despite the appearance of having complete control over our financial markets, the FED might lose that power of perception fairly soon. And once the FED trade goes, the markets should implode. I have long argued that the FED has no idea of where we are and what their reckless QE and zero interest rate policy has done.  Case and point…..

Exclusive: Fed’s Williams sees less risk of rate retreat after lift-off

“So even if the economy got some bad shocks, really you are probably just talking about flattening that path out a bit, or maybe raising rates more slowly.”

Economic lift-off……what economic lift-off? See, I told you they were clueless. Over the last few months I have presented at least a dozen data points showing that the US Economy is rolling over and accelerating down. (Ex: chart below). Plus, forward earnings and guidance are expected to be adjusted lower due to the strong dollar and the same economic issues. We should see the evidence of that in Q-1 reports.

Finally, no matter what the FED says, asset bubbles do not translate to strong economic growth. The view Mr. Williams has is identical to the view Mr. Bernanke held in Q-1 of 2008. As the FED minutes revealed, Mr. Bernanke was concerned about overheating the economy and the housing sector. The 2007-2009 bear market was pushing into its 6th month by that point.

That is to say, don’t rely on the FED to make your investment decisions. And if you do, you will pay dearly for it.

Macrodata

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. April 13th, 2015  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Why The FED Has No Clue Google

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Druckenmiller: Time To Bet Against The FED To Earn Huge Returns

Stan Druckenmiller made over $1 Billion by betting against the bank of England with George Soros in the early 1990’s. In other words, when he talks, you better pay attention. And what does he have to say today? The exact same thing I have been yapping on this blog for quite a while now.

I know it’s so tempting to go ahead and make investments and it looks good for today,” the retired founder of Duquense Capital Management said, “but when this thing ends, because we’ve had speculation, we’ve had money building up four to six years in terms of a risk pattern, I think it could end very badly.

There is nothing more deflationary than creating a phony asset bubble, having a bunch of investors plow into it and then having it pop.

I feel more like it was in ’04 when every bone in my body said this is a bad risk/reward, but I can’t figure out how it’s going to end. I just know it’s going to end badly, and a year and a half later we figure out it was housing and subprime. I feel the same way now.

When you have zero money for so long, the marginal benefits you get through consumption greatly diminish, but there’s one thing that doesn’t diminish, which is unintended consequences.

When this thing ends, because we’ve had speculation, we’ve had money building up for four to six years, in terms of a risk pattern, I think it could end very badly.

Then again, feel free to listen to your Charles Schwab financial adviser and go long on margin. 

Z30

Druckenmiller: Time To Bet Against The FED To Earn Huge Returns  Google

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Two Hedge Fund Managers Discuss The Stock Market, Currencies, Commodities & Investment Ideas – Weekly Podcast

April 11th, 2015: We have a great show for you this week. Hedge fund managers Matthew Demeter and Alex Dvorkin discuss the following topics….

  • What the stock market is doing and what we expect to happen over the next few weeks.
  • COT Report and what the big guys are buying. Listen to make sure you are not on the wrong side of the trade.
  • Deflation, employment numbers, gold, geopolitical and macroeconomic issues.
  • A multitude of great investment ideas and various tops/bottoms that can make you a ton of money.
  • And of course, much…..much more.

Don’t miss this one and join us again next Saturday. 

Listen to the podcast by clicking on the player above. If you prefer iTunes, please Click Here

Z30

Two Hedge Fund Managers Discuss The Stock Market, Currencies, Commodities & Investment Ideas – Weekly Podcast Google

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Shocking: The Same Price Buys You Either A 9 Bedroom Castle Or A 1 Br Apartment

Daily Chart April 10 2015

4/10/2015 – Another positive day with the Dow Jones up 99 points (+0.55%) and the Nasdaq up 21 points (+0.43%). 

The market continues to behave as forecasted. If you would like to find out what happens next, please Click Here.  A lot of stuff to to cover this Friday.

First, here is a question……for the same amount of money, would you buy a 9 Br Castle in France or a 1 Br crappy apartment with no balcony in Sydney?  

Don’t for a second think that I have forgotten about our persisting Real Estate bubble. Nothing new on that front. The dead cat bounce off of 2010-2011 bottom is now over, the market is rolling over and it will accelerate down over the next 5 years. Most likely in conjunction with the upcoming recession and a bear market in equities. Our friend MISH has a jaw dropping post on 10 French Castles that are Cheaper than Sydney Units. Check it out. 

 Second, Einhorn Says Too Much Easy Money Is Holding Back U.S. Economy

Greenlight Capital’s Einhorn makes his point by discussing the pros and cons of jelly donuts. “My point is that you can have too much of a good thing and overdoses are destructive. Chairman Bernanke is presently force-feeding us what seems like the 36th Jelly Donut of easy money and wondering why it isn’t giving us energy or making us feel better. Instead of a robust recovery, the economy continues to be sluggish. Last year, when asked why his measures weren’t working, he suggested it was “bad luck.”

The problem is, the damage has already been done and it is now impossible to avoid the consequences. In this case, the consequences being a severe bear market in equities and a deep recession within the US Economy. Current weakness and collapsing economic variables, despite zero interest rates and a massive liquidity infusion, is a clear evidence of that.

Finally, Dimon, now Summers: There’s a liquidity problem

Both Dimon and Summers believe there might be a liquidity problem in the bond market. An issue that concerns both of them very much. I am beginning to hear anecdotal evidence that is the case within the stock market as well. While my positions are not large enough to trigger liquidity concerns, some of the bigger guys out there are starting to have problems liquidating their postions.

Or so I hear.  In terms of press, Crispin Odey of Odey Asset Management talks about just that in The Secret Behind This Hedge Fund Manager’s Market Collapse Prediction. That is to say, should the market start a significant decline, we might see liquidity vanish overnight. We saw a little bit of that in October of 2014. Point being, if/when things get ugly, they will get ugly fast.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. April 10th, 2015  InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Shocking: The Same Price Buys You Either A 9 Bedroom Castle Or 1 Bedroom Apartment Google