4/16/2015 – A down day with the Dow Jones down 7 points (-0.04%) and the Nasdaq down 3 points (-0.06%) 

According to quite a few market pundits, the party in the equity markets hasn’t even started yet. Case and point

• Party in Equities Has Not Even Begun: Kotok

• Forget the Fundamentals, This Market Is About Just One Thing

I cannot stop shaking my head in disbelief. To save you some time, here is what was said:

“This is an extraordinary buying opportunity, buy any and all dips, with zero interest rates the price of equities could be infinite, this bull market will continue, valuation don’t matter anymore, etc….”

Valuations don’t matter……infinite run ups are just around the corner …..buy now. That sounds familiar. If I didn’t hear the exact same thing at 2007 and 2000 tops, well, call me a fool.

Again, the underlying assumption in both cases is the same. We are in such a unique monetary easing environment that there is no way in hell the markets can go down. Maybe so, but here is the major point that most investors miss. Today’s market environment becomes a matter of psychological setup as opposed to a fundamental background.

When everyone and their day trading grandmother believe that we are in such a bullish environment, the market is getting ready to reverse. Why? Well, it’s rather simple, everyone has already bought into the long side of the market. Contrary to the opinion of the market pundits above, I would argue that the only opportunity here is on the short side (or in cash).

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. April 17th, 2015  InvestWithAlex.com

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Shocking: Why The Stock Market Deserves Infinite Valuation  Google

4/15/2015 – A positive day with the Dow Jones up 74 points (+0.41%) and the Nasdaq up 34 points (+0.68%). 

Something strange is in the air. While most people will agree that we are heading towards some sort of an economic storm, most believe we won’t see any major trouble before 2017-2018, even as late as 2022. So much so that St. Louis Fed President James Bullard believes the US Economy is about to boom.

Fed’s Bullard says rate hikes are needed for coming ‘boom’

Now, wait a second. Let’s bring an ounce of common sense to the statement above. Since 2009 bottom we have lived in an environment of zero interest rates and 3 massive capital infusions in the form of QE. And even with all of that money floating around the US Economy has failed to show any signs of a “Boom”.

Sure, our capital markets have experienced a massive boom, but as I have shown here so many times before, the US Economy is rolling over and accelerating down.

Bullard: We risk a market bubble if we don’t move on monetary policy

“A risk of remaining at the zero lower bound too long is that a significant asset market bubble will develop.”

Earth to Bullard: We are already in a massive bubble. It is already too late. And you don’t need a fancy Harvard Ph.D. nor do you have to look further than the chart below to fully realize that. Take a look.

The market is now more expensive than at 1907,1937, 1966,1972 and 1987 tops. Just as expensive as at 1929 and 2007 tops. Only 2000 top stands above (due to the tech bubble and the lack of earnings at that time  – arguably that number can be dismissed). And the charlatans at the FED have the audacity to claim that there is “No Bubble”? Despite QE, zero interest rates, stock buybacks, high margin debt, etc…. Seriously, WTF?

This leads me to stand by my earlier statement. The FED has no clue.  

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 15th, 2015  InvestWithAlex.com

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

The FED Expects An Economic Boom, WTF? Google