***Greek Mythology: Icarus ignored his father’s instructions not to fly too close to the sun; when the wax in his wings melted he tumbled out of the sky and fell into the sea where he drowned, sparking the idiom “don’t fly too close to the sun”.
Today’s Shiller’s S&P P/E Ratio is exactly where it was in October of 1929 or right before the historic collapse. Now, that is not to say that we will have a crash, but rather, to point out that today’s market is quite expensive.
When we take that fact alone into consideration, today’s market setup is quite interesting. The bulls would argue that “Trump’s Economic Miracle” we are all witnessing will go on for the foreseeable future. We will get our interest rate cuts, the system will once again be flooded with liquidity, real economic growth is irrelevant in relation to buybacks, etc….. New all time highs are a “sure thing”.
The bears would surely have a heart attack after hearing such a bullish bias. They would be quick to point out that we are in a financial bubble of historic proportions, the yield curve is inverted, interest rates are already low and the real economy/earnings are plunging faster than Joe Biden’s poll numbers.
Who’s right?
The bears are most definitely right, but the timing is of the essence. Will we get that final hurrah rally or have the wings already melted? We are about to find out. In the meantime, if you would like to find out what the stock market will do next, based on our timing and mathematical work, please Click Here
This Week’s Journal consists of the following topics
- Prepare For Earnings Recession
- Ivanka Trump Is The REAL First Lady
- Buybacks Save The Market As Corporate Profits Plunge
- Is It Time For The “White Male” To Start Rapping & Pillaging Again?
- July Rate Cut Odds Are Still At 100%
- The Future Is Now: You Can Now Have Real Sex Over The Internet
- Massive Gap Between S&P Gains And Actual Economic Data
- Mexico Murder Rate Goes Parabolic With 94 Killings Per Day
- Plus, Find Out What The Stock Market Will Do Next
Finally, you don’t have to guess what the stock market will do next under today’s extreme conditions. If you would like to find out exactly what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here.
Please Note: Our latest call was a direct hit. While everyone was panicking our work projected an important bottom on December 27th (+/- 1 trading day) on the Dow at 21,725 (+/- 50 points). An actual bottom was put in place on December 26th at 21,713.