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Warren Buffett: SELL, SELL, SELL

11/7/2018 – A positive day with the Dow Jones up 545 points (+2.13%) and the Nasdaq up 194 points (+1.94%) 

The stock market remains at an incredibly important juncture. Things are about to accelerate in an unexpected way. 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. 

I don’t think Warren Buffett can make it any more clear…..

Once again Warren Buffett has given us a major warning that everything is expensive

Buffett’s holding company, Berkshire Hathaway, just announced a blockbuster quarter, earning nearly $7 billion.

And Buffett’s still sitting on over $100 billion of cash. That means he’s got enough money to buy almost any company he wants, anywhere in the world.

But the only move Buffett made in the last quarter was buying $928 million of Berkshire Hathaway stock.

Some people might say this is a sign that Buffett thinks Berkshire’s stock is incredibly undervalued.

To be fair, nobody knows Berkshire better than Buffett. And shares may present a good value at this level – an all-time high price.

But it’s clear to me that Buffett simply can’t find anything else worth buying.

Remember, Buffett’s got over $100 billion in cash (and he could use debt to fund an even larger acquisition).

So he could buy stock in any publicly traded company. Or he could buy most any private company (the last time he did this was Precision Castparts in 2016 for $32 billion).

We have been facing a similar dilemma as value investors. There is nothing to buy. But it gets worst……

Not only is there nothing to buy, the stock market finds itself at historically high valuation levels. Also known as the everything bubble.

As recently as a few months ago Mr. Buffett have suggested that this is a great time to invest in America. Our view has always been the same. Do not listen to what he says, instead, do as he does.

If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here. 

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Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave In A Deflationary Collapse

A positive week with the Dow Jones up 582 points (+2.35%) and the Nasdaq up 189 points (+2.63%) 

The stock market finds itself at an incredibly important juncture. Things are about to accelerate in an unexpected way. 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. 

President Trump just posted the following image. Just a few hours after he, in his GAME of Thrones joking fashion, has plunged millions of hard working Iranians into poverty and despair. And under false pretenses I might add.

Now, consider the following……

Why American Consumers Are About To Be Blindsided By An Inflationary Shockwave

It’s obvious that higher prices will “work” alongside the Fed’s rate hikes to help dampen the United States economy further. Not only that, but higher prices could cause even more damage if the Fed sees raising rates as the main solution to inflation exceeding its expectations.

Diane Swonk, Grant Thornton’s chief economist, previewed what will happen next best: “We might see a pop of inflation in the first quarter.”

Once that happens in what is already a rising rate environment in which the president has made it clear he is solidly against any more Fed tightening, we wonder just what Powell’s next move will be when even higher prices force his bluff?

Here’s why you just have to shake your head at Trump’s BS.

First, Trump is taking credit for arguably the biggest financial bubble of all time. Sure, it felt wonderful at 2000 and 2007 tops, I was there, but it sure as hell didn’t work out well for those involved, nor the US Economy. .

Second, it is true, Trump’s idiotic trade war will bring higher prices across the board for the things Americans buy on the daily basis. All while wages stagnate. We have brought Trump’s attention to the Trade Deficit – Economy – Stock Market relationship before, that they tend to move in the same direction, but I am afraid our warning felt on deaf ears.

Finally, when the Trump collapse finally hits, as it surely will, you will see a massive deflationary spiral in real assets (stocks, bonds, real estate) and inflationary pressures in the stuff you actually need to buy. Call me crazy, but I don’t see how that’s winning.

Well, perhaps you can call it winning if one’s objective is to drive this country into an absolute economic disaster. Make America Grumpy Again.

If you would like to find out exactly when the stock market will crater, in both price and time, based on our timing and mathematical work, please Click Here. 

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Junk Bond Market About To Blow Sky High – Will The Stock Market Follow?

11/1/2018 – A positive day with the Dow Jones up 265 points (+1.06%) and the Nasdaq up 128 points (+1.75%) 

The stock market finds itself at an incredibly important juncture. Things are about to accelerate in an unexpected way. 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. 

MISH had an excellent write up about the present state of the Junk Bond Market. We highly encourage you to read it in full.

Junk Bond Bubble in Six Images

The conclusion is rather simple. 

When the junk bond market does blow, it is nearly guaranteed to take equities with it. That’s the scary thing about the recent equity selloff.

The junk bond market selloff has barely started and so has the accompanying stock market decline.

We couldn’t agree more. If you would like to find out exactly when the stock market will crater, in both price and time, based on our timing and mathematical work, please Click Here. 

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