7/16/2015- An up day with the Dow Jones up 70 points (+0.39%) and the Nasdaq up 64 points (+1.24%).
If you participate in financial markets the video below is a must watch.
Carl Icahn and Larry Fink, BlackRock Chairman and CEO discuss the state of today’s financial market. As a quick summary…..
Carl Icahn: High-yield market is about to blow up (he indicated previously that he has a large short position there or building one). Just as it did in 2007-2009. This will have a net negative impact on the stock market. Just as it did in 2008.
Larry Fink: No way in hell, we don’t have the leverage we had in 2007.
My Comments: I believe Carl Icahn is on the right side of the trade here. The massive amount of leverage Larry Fink dismisses is still there. Its just that a large chunk of it got shifted onto the FED’s balance sheet and the stock market.
Here is what I believe the trigger point will be: As soon as investors lose “net faith” in the FED you will see this whole thing fall apart. Fast. As far as I am concerned they have already lost the window of opportunity to raise interest rates. They will now be stuck in the worst case scenario…..zero interest rates, no way to stimulate as another round of QE can backfire and collapsing capital markets. As soon as investors come to this realization, the jig will be up. And that should happen much sooner than most people anticipate.
Anyway, watch this video. It is definitely worth 50 minutes of your time.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. 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 2015-2017 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. July 15th, 2015 InvestWithAlex.com
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