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The Shocking Downside Of American Real Estate Bubble 2.0

courtesy of doctorhousingbubble.com
courtesy of doctorhousingbubble.com

As Wall Street Journal reports…. Half of Americans can’t afford their house

Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the “How Housing Matters Survey,” which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools.

If you need someone to blame I have got a few people for you. You can start with Greenspan, Bernanke, Yellen, Clinton, Bush, Obama and everyone in the US Congress/Senate over the last 20 years. All of them were, more or less, directly responsible for perpetrating this massive financial crime against the American people.

While you might have enjoyed your house going up in value 500% over the last 15 years you will not enjoy what happens next. As the chart above illustrate, the “Dead Cat Bounce” in real estate prices is almost over and the market is rolling over. As predicted here, Real Estate Collapse 2.0 Why, How & When  the real estate market is about to suffer a massive Stage #3 correction. By the time it’s over, most Americans should be able to afford a house…again. I can’t wait.

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The Shocking Downside Of American Real Estate Bubble 2.0 Google

What You Ought To Know About The Cold War 2 & Obama

Obama shaking hands with Ukraine's Mafia Boss (AKA "Chocolate King")
Obama shaking hands with Ukraine’s Mafia Boss (AKA “Chocolate King”

If there were any doubts that the Cold War 2 with Russia and possibly China will only get worse from this point on (as predicted here), they should now be gone. While most people do not realize this yet, the Obama Administration will be viewed as instrumental in setting up the stage for a massive conflict around 2030. Is there a chance of this getting better? Not when our nation’s next presidential front runner (Hillary) openly compares Putin to Hitler. The stage is being set.

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What You Ought To Know About The Cold War 2 & Obama   Google

Daily Stock Market Update. June 3rd, 2014. InvestWithAlex.com

daily chart June 2 2014

A slight down day with the Dow Jones down 21 points (-0.13%) and the Nasdaq down 3 points (-0.07%).

If the stock market was a patient it would be pronounced dead already. Did someone shut down Wall Street or has everyone left for the Hamptons already?

In all seriousness and as I have mentioned before, the market continues to accumulate energy. Like a spring. This is a very dangerous period. Typically, periods of inactivity are followed by periods of immense activity, catching most traders/investors with their pants down. Based on my mathematical work, it is likely to be the case here.

In other words, when this period of inactivity ends the stock market will stage either a massive rally or a “mini-crash” kind of a move. If you would be interested in learning which way it will break and when, 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. June 3rd, 2014 InvestWithAlex.com

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

Daily Stock Market Update. June 3rd, 2014. InvestWithAlex.com  Google

Shocking News: Is The Bond Market Bubble About To Burst?

10 Year Note Chart

Most market participants continue to watch in disbelief as bond yields continue to trend lower and the yield curve continues to compress in the most unexpected fashion. This pair of articles that give a good overview on the subject matter.

Here is the bottom line. Anyone who expects the “bond market bubble” to burst is in for quite a shock. First, there is NO bond market bubble. There is a massive stock market bubble, but the same cannot be said about the bond market. Second, as I have mentioned earlier the bond market is starting to see a severe recession ahead….hence the decline/compression.

Finally, 30-year bull markets (in bond prices) typically do not end in a simple V shape form. The bond market is going lower to set a secondary/double bottom that will coincide with a bear market of 2014-2017.

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Shocking News: Is The Bond Market Bubble About To Burst? Google

Peter Schiff Capitulates: Are Markets About To Collapse?

Peter SchiffPeter Schiff, one of the most “in your face” perma bears has basically capitulated. After years of predicting US Equity market collapse, appearing on various TV/Radio shows and writing a few books on the subject matter, Peter now believes the FED will be able to delay any such collapse…..  “The air is already coming out of the bubble” but Fed can delay collapse: Peter Schiff

A contrary indicator? 

You bet. Listen, Peter Schiff is a very intelligent man. Yet, one of the hardest things out there is to be a bear in an ever increasing bull market. Even though your research might be right, your timing might be off by as much as a few years. And the market makes you pay for it by making you look like an absolute idiot. I had the privilege of experiencing this in 2006-2007 when my call for 2008 collapse was a few years early.

This is something that all investors should be aware of. I call it an emotional detachment from a proposed outcome. While it is important to have a very well researched position, it is even more important to be able to change your view when need be. Very few people can do that and that is why most people buy at the top and sell at the bottom. Unfortunately, Mr. Schiff is giving up at exactly the wrong time.

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Daily Stock Market Update. June 2nd, 2014. InvestWithAlex.com

daily chart June 2 -nasdaq  2014

6/2/2014 – A mixed day with the Dow Jones up 26 points (+0.16%) and the Nasdaq down 5 points (-0.13%)

I haven’t heard anyone else mention this, at least not yet, but it appears that the Nasdaq might be building a fairly large Head-And-Shoulders trading pattern.  With the left shoulder starting on December 12th, 2013, top of the head appearing in early March and the start of the right shoulder developing from the April 11th bottom. Plus, if we take TIME symmetry into consideration, the right shoulder doesn’t have that much more time to complete itself.

What does all of that mean?

Typically, head and shoulder patterns develop and set off major trend shifts. Basically, if the Nasdaq ends up completing this pattern over the next few trading weeks/months and then proceeds to breakdown below 4,000, there will be hell to pay on the downside. As you know from my previous posts, the fundamentals and various other market divergences tend to support this hypothesis.

Not only that, this is further confirmed by my mathematical and timing work. Again, my work shows a severe bear market between 2014-2017. 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 exactly when the bear market will start (to the day) and its subsequent 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. June 2nd, 2014 InvestWithAlex.com

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

Daily Stock Market Update. June 2nd, 2014. InvestWithAlex.com Google

Google To Offer Satellite Internet. Sign Me Up.

satelite internet investwithalexIn a bit of a good news, Google is starting a venture and plans to spend up to $3 billion to launch 180 satellites to offer satellite internet access throughout the globeGoogle reaches for the stars: Satellites next venture for search giant, WSJ reports.

Sign me up as I would be their first customer. This is a much bigger deal than most people believe. I am often on the road and I can assure you that getting a reliable internet connection in Asia, Russia or Central/South America is not only frustrating, it can be downright impossible. Regardless of how much money you have. 

For instance, I used to own a business in the Philippines and you couldn’t even get a stable Internet connection in the central business district of Makati. You have to get a dual from two different service providers and you also have to pay $500/month for a connection that you can get in the US for $20.

Point being, this might be a huge growth driver for Google going forward as most tech companies continue to battle for Global domination. Personally, there is nothing more I would like than to do most of my work (trade & write) from a remote island somewhere in the South Pacific. I can only do so with a stable connection and I can’t wait until Google makes it available.

Z31

Idiots At The FED, “Let’s Jack Up The Rates…NOW”

Handout photo of Kansas City Federal Reserve Bank President Esther GeorgeAt least for the Kansas City Federal Reserve Bank President Esther George, the future is crystal clear. According to her, the US Economy will continue to accelerate, interest rates will go significantly higher and the FED will eventually work through it’s $4 Trillion Junk balance sheet without a sweat. The time to raise the rates is NOW.  Fed’s George wants rate hikes soon, and not too gradual

With her vision being so clear, it must be a personal sacrifice working for the FED and NOT making billions on Wall Street. Yet, the reality is quite different.

Interest rates continue to decline while flattening the yield curve (suggesting a recession), the stock market is back to the bubble/speculation levels unseen since the 2000/2007 tops and the FED continues to tighten.  As I have mentioned before, the worst thing they can do now is cut the QE, let alone raise interest rates. Proving once again, the FED is nothing more than a reactionary force.

All of this is confirmed by my mathematical and timing work. It shows a severe bear market/recession within the US between 2014-2017. When this bear market starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning exactly when this bear market will start and its subsequent internal composition, please Click Here. 

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