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What You Ought To Know About Mr. Bernanke Rolling In Fools Money

bernanke meme

Why would anyone pay good money to listen to what this charlatan has to say is beyond me. Not as if he can share an actionable forecast nor does he have a firm grasp on where the economy is headed. His recently released 2008 FED minutes prove that without a shadow of a doubt.

After Fed, Bernanke Offers His Wisdom, for a Big Fee

During his eight years as steward of the world’s largest economy, Mr. Bernanke’s salary was about $200,000 a year. Now he makes that in just a few hours speaking to bankers, hedge fund billionaires and leaders of industry. This year alone, he is poised to make millions of dollars from speaking engagements.

Investors are dealing with an economy that is in large part the creature of Fed policies under Mr. Bernanke, and they are willing to pay top dollar for his words of wisdom as a result.

Wisdom? LOL. As I have suggested here a number of times before, the FED doesn’t know what is going on within the US Economy. It is a reactionary force at best. For instance, while there were a number of brilliant money mangers and economists out there who predicted the 2008 collapse as early as 2005, Mr.Benranke was not one of them. Not even close.

While others saw clear signs of a collapse, the FED and Mr. Bernanke talked about accelerating economy and “a hot” housing market as late as Q1 of 2008.

Today,  we have an identical environment. While I am against any soft of stimulus, tightening today (as the FED is doing) is equivalent to financial suicide. Given the amount of speculation, leverage and leverage driven earnings in the system, any tightening here will set off the next recession. And that’s exactly what we will see when the bear market of 2014-2017 will rear its ugly head ……as per my mathematical work.

Point being, whoever uses Bernanke’s wisdom to invest in today’s environment will get their head handed back to them.  

z32

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Russia and China Sign A Historic $400Bn Gas Deal. EU Freaks Out.

Russia China Pipeline Investwithalex

Mr. Putin just became a whole lot richer as Russia Signs $400 Billion Gas Deal After Decade of Talks  

Infrastructure investment from both sides will be more than $70 billion and will be the world’s largest construction project, with Russia providing $55 billion up front and China $22 billion. This is Gazprom’s biggest contract to date.

While the gas deal itself is historic, the geopolitical ramifications of this deal are much more important.

First, it will allow Russia and Putin (who will rule Russia for as long as he wants) to diversify away from the EU.  The next time either the EU or the US will threaten Russia with NATO, war or sanctions they might very quickly find their gas turned off and their economies collapsed.

More importantly, as the US continues to poke both Russia and China with their “freedom and god given righteousness” stick, Russia and China continue to form much closer ties. Such close ties will eventually turn into a military alliance to counterbalance NATO (aka the US Industrial Military Complex) in South East Asia and in Europe. Just as predicted in my report here…Nuclear World War 3 Is Coming Soon.When, How & Why

Z30

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Daily Stock Market Update. May 20th, 2014. InvestWithAlex.com

daily chart May 20 2014

A strong down day with the Dow Jones down 138 points (-0.83%) and the Nasdaq down 29 points (-0.70%)

Despite today’s sell off the market remains within its tight trading range. Yet, today’s sell off and other seasonal factors should raise a number of red flags. For instance, the market is fast approaching its important short-term support at 16,300. Once broken, it might present us with the ominous sign of what is to come for the overall market.

Plus, the now famous saying “Sell In May And Go Away” didn’t just appear out of thin air. There is a certain cyclical composition within the stock market structure that sets it off in May of each year. (Hint….find out when the market first started trading).

With that said, the market left a number of gaps to the upside since starting it’s decline on May 13th. Suggesting an upcoming rally. Which side (bull or bear) will prevail over the next few weeks? That in itself is not very relevant. What is relevant is that a vicious bear market of 2014-2017 is just around the corner.

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. May 20th, 2014. InvestWithAlex.com 

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

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Citi’s Chief Equity Strategist: Forget About The Bond Market, Stock Market Will Rally.

citi chief investment

At least at the Citigroup, the bull market never ends. That is unless and until they have to beg the American taxpayer for billions in bailout money.

“We think [the reason for falling yields is] pretty technical. Look at jobs, auto sales, planned capital expenditures — none of that is indicative of something ominous in the economic data.”

So what explains it? Levkovich believes the justification for the bond rally has been driven by technical factors like people covering short positions, which he’s heard that banks and a number of institutions have had to do.

The bottom line in his view is that “people have been reading a little too much into it.”

Reading a little bit too much into it? Huh. I am not sure how many times investors have to learn the hard way not to discount what the bond market is telling them. What is the bond market saying?

As the most recent action indicates, it is screaming out that the recession is just around the corner. You can learn more about it in my previous post The Shocking Truth Behind The Bond Market Conundrum Explained

This is further confirmed by our mathematical and timing work. It shows a severe bear market between 2014-2017 that will retrace most of the gains accrued over the last few years. One thing is for sure, ignoring today’s yield curve compression (at this stage of the bull market) will be very detrimental to your overall wealth.

z33

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Shocking: China’s Housing Collapse Is Already In Full Swing.

China real estate collapse

It’s been quite a while since I have updated you on the Chinese housing bubble. Here is the latest from a pair of excellent articles on the subject matter.

Bloomberg: Is China’s Housing Bubble Beginning to Burst?

Earlier this month, financial analysts from Japan-based Nomura Group (NMR) issued a grim report on China’s housing market: “To us, it is no longer a question of ‘if’ but rather ‘how severe’ the property market correction will be,” the report read. 

I would agree with the assessment. Further, with the US Economic recession of 2014-2017 just around the corner, worldwide tightening and a massive credit/shadow banking problem in China, I highly doubt that China can engineer any sort of a “soft landing”.

Global Times: Fujian said to be easing home restrictions

Since March, 20 property developers in Guangzhou have been offering “zero down-­payments” to attract buyers, in addition to large discounts and tax refund, the National Business Daily reported Monday.

Now that developers can’t even get rid of their inventory by giving it away for FREE, the end is truly near. The only question is, how massive will the implosion be and to what an extent it will impact the overall Chinese economy.

Z31

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Utterly Idiotic US Foreign Policy Yields Great Results.

china fuck investwithalex2

Now that the Obama Administration has succeeded in utterly destroying the US/Russian relationship, all in three very short months, it is time to move on to greener pastures.

Who’s next to get a taste of Freedom? 

China, of course, as the U.S. accuses China of cyber spying on American companies. Does China spy on the US companies. Sure, but I highly doubt it is to the extent that the NSA spies on everyone and everywhere. Either way, under normal diplomatic circumstances you just don’t pull out 5 random foreign military operatives and blast them in worldwide media. Other than looking idiotic and infuriating China to no end, the accusations above didn’t accomplish anything worthwhile.

Yet, China didn’t hold any punches. China confronts U.S. envoy over cyber-spying accusations. Now, I wonder how long it will take for the Obama Administration to utterly destroy our relationship with China over Japan, Taiwan and the Philippines. I doubt that it will take more than six months.

In the meantime, China and Russia continue on with their strategic alliance Russia Close to $400 Billion Gas Pipeline Deal in Pivot to China. I am just wondering how long it will be before Russia and China end up forming a military alliance to counterbalance NATO, leading to an eventual war.  A few years….give or take? 

Z30

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Daily Stock Market Update. May 19th, 2014. InvestWithAlex.com

daily chart May 19 2014An up day with the Dow Jones up points 20 points (+0.13%) and the Nasdaq up 35 points (+0.86%).

The stock market continues to trade within a very tight range. Accumulating energy for what is to come next. I have beaten this dead horse here for over 3 weeks now, so don’t be caught with your pants down once the market decides to wake up.

The video below is another good way to look at the stock market today (take a look). As I have mentioned here before the divergence between the market and the 10-Year Note continues to widen. Which market is right? My money is on the bond market. 

 

All of 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. May 19th, 2014. InvestWithAlex.com 

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

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Shocking News: The Wall Of Worry Is Rebuilt. The Market Is Ready For Another Rally?

wall of worry investwithalex

According to Bloomberg the Wall of Worry Rebuilt as Nasdaq Rout Sends Cash to High. 

“Walls of worry are everywhere,” Robert Doll, who helps oversee $118 billion as chief equity strategist at Nuveen Asset Management in Chicago, told Tom Keene and Michael McKee on Bloomberg Radio’s “Surveillance” on May 14. “This is the least believed bull market that I’ve ever seen. From here it’s earnings, it’s fundamentals, it’s can the economy grow? And my guess is the answer to that question is yes.”

WTF? What kind of drugs is this guy on?  

What we have witnessed since the 2009 mid cycle bottom (mid cycle of 2000-2017 bear market) was one of the strongest 5-Year Bull Market runs in the history of the market. And this guys has the balls to claim that “walls of worry are everywhere” and “this is the least believed bull market…ever”.

Anyhow, you can listen to this nonsense BS or you can look at the actual data. What does the actual tell us? The VIX is scrapping the bottom of it’s trading range, the yield curve is compressing, no spreads, yields are collapsing and the bullish investor sentiment is close to an all time high. Clearly pointing to a massive amount of risk within our financial system and the animal spirits within our financial markets.

I am afraid that Mr. Doll has mistaken the “Wall Of Worry” for an off ramp right before the cliff. Don’t be as stupid as him.     

z33