6/17/2015 – A positive day with the Dow Jones up 31 points (+0.17%) and the Nasdaq up 10 points (+0.20%)
As predicted yesterday, No Matter What The FED Does, It’s Over, Fed’s statement had a little bit for everyone. Bulls, bears, financial unbelievers and day trading retirees. Worst case scenario, god forbid, the FED will raise interest rates 50 basis points by the end of the year. That is truly terrifying.
And the best case? The Fed will either postpone the hikes further, cancel them all together or even introduce QE-4. After all, the economy is awesome.
With that in mind, I continue to maintain that the FED is now irrelevant. Trying to figure out what the FED will do next is like looking up the horse’s ass in an attempt to see its teeth.
Why is it irrelevant?
No matter what the FED does now, we cannot get out of this unscathed. The imbalances are too great, the markets are too expensive and most people are too bullish. From our vantage point, there is no scenario that ends today’s craziness in a favorable fashion.
But don’t despair just yet. It appears some bulls now believe that higher interest rates, never mind the QE, will be great for the market. Prompting it to stage a massive rally. Fund managers position for post-rate hike U.S. equity rally So, hikes or not, the outcome is singular.
Do I really have to spell out what happens when everyone is on the same of the trade, no matter the outcome, and the S&P’s P/E ratio is at 27? I hope not.
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. June 17th, 2015 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
