8/1/2018 – A mixed day with the Dow Jones down 81 points (-0.32%) and the Nasdaq up 35 points (+0.46%)
There is very little to add to the analysis presented here over the last few weeks/days.If you would like to find out what the stock market will do next, in both price and time, based on our mathematical and timing work, please Click Here.
Today’s FED decision on interest rates was “as expected snooze fest”. Here is a very good look at the subject matter.
Word of the Day “Strong”: Just Not Strong Enough to Hike
The word of the day is “strong”. The Fed used that word five times. The Fed’s actual action was not strong.
Fed Ups Economy from Solid to Strong
Words Strong, Action Weak
The Fed elected to hold interest rate at 1-3/4 to 2 percent.
This is rather simple at this point. As we have discussed here in the past the FED will continue to hike interest rates. They have no choice. The next recession and everything bubble collapse is coming and they need ammunition to fight it. Having said that, it is a little too late. Flat and soon to be inverted yield curve is already doing massive damage to our debt driven bubble economy.
Bubble, what Bubble? ….this bubble.
This Favorite Warren Buffett Metric Tells Us a Stock Market Crash Could Be Coming
This simple indicator, Market Cap/GDP, has been incredibly accurate in the past. That is why I often laugh at money managers talking about Value in this market. There isn’t any, not by a long shot. So much so that today’s valuation levels are the highest in history. We have discussed that in the past.
Over the last few years Mr. Buffett has suggested that it is a no brainer to invest in America over the long-term. And while he might be right over the long-term, do as he does and not as he says.
After all, the lack of attractive investment opportunities has resulted in Berkshire Hathaway accumulating nearly $110 billion of cash and equivalents on its balance sheet.
That is to say, Mr. Buffett is hoarding cash and waiting for much lower stock prices. And so should you.
If you would like to find out when the next collapse happens, based on our mathematical and timing work, please Click Here.
