Sunday, April 4, 2021
👉Stocks More Overvalued Than Tulip Mania Bubble! The March 2020 Lows will be Re-Tested https://youtu.be/PCRKDr5EAIc
👉Stocks More Overvalued Than Tulip Mania Bubble! The March 2020 Lows will be Re-Tested
$6 trillion printed out of thin air.
Millions of Americans out of work.
9.5 million jobs have been officially vaporized AND never coming back!
The US economy continues to languish, burdened by government lockdowns and other pandemic-related factors.
They just borrowed about $2 trillion in 100 days of a new administration to keep the credit card monthlies paid, and another $2 trillion is about to be borrowed again.
Retail sales have dropped precipitously over the last several months, underscoring the economic malaise.
Yet the stocks are going up and up.
The market will be celebrating one year anniversary from the March bottom last year!
Stocks are in the Largest Bubble in history.
They are raising Corporate Tax Rate to 28%.
But the stock prices have absolutely nothing to do with a company's profitability, let alone the ability to pay their taxes!!!
The Fed is willing to destroy the economy just to maintain the financial businesses.
Way overvalued. Soon/overnight, the Fed is going to become the enemy of the stock market. Oil is up over 70% in the last year. Transportation costs are up. Euro is up; loan costs up. The most recent CPI data (February) shows that CPI is already increasing at an annualized inflation rate of 5% per year. This is already beyond the Fed's target. Debt is huge. Get ready for tax increases, inability to makes repayments of debt, a massive increase in Fed Funds rate. March numbers will likely show CPI is already at 6% inflation/yr. After being the stoker for years, Fed will overnight become the enemy of the stock market! Markets will come down from these all-time highs and drop to less than half of current overvaluations. S&P500 to 1900.
The goal of the Fed is to slow/control inflation. They will have to raise rates to slow the economy. The Fed has been the greatest cheerleader of the market over the past two years. They would need to reverse course and would then become the stock market's biggest enemy. This would crash growth stocks hugely.
The indicators like S&P or DOW are now immaterial. For a long, I have been noticing unusual patter of buying in stocks, and that is because of one reason. Stock can only go up mentality initiated by FED via laws and systems are not free-floating systems but are harnessed to several federal manipulations.
I hear from students and many people that once they come into money, they will just buy stocks and forget them till they retire. Such mentality is not prudent. However, it prevails. And even though we know that less than 37% of Americans are holding stocks at the moment and 90% of the stocks are held by the top 1% of the population. We are giddy about it, but stop looking at indicators and find your own reasons, like a gamble in stock always wins as FED supports it because any indicator like PE or S&P or DOW means less.
Never confuse a great bull market with an investment genius. All of us have enjoyed respectability lately and nice returns. But the stock market is a huge humbler with its proclivity to revert to the mean. Pie in the sky expectations will fall to earth. You won’t make money shorting high flyers because liquidity dries up in corrections. Put some money in cash, now. And again tomorrow.
500% leverage, all a product of the hyper leveraging off low rates.
The entire system is an Archegos now due to constant welfare hokum bailouts of moral hazard bets.
Archegos CAPITAL LOST $110 BILLION IN 5 DAYS USING 500% LEVERAGE.
The more complex a system is, the more likely it is to collapse. The financial system with derivatives of derivatives on outcomes of the future you do not know where a counterparty (e.g., Prime Broker) ends up being the counterparty of itself, is surely waiting for a collapse. It already did in 2008, but Governments bailed it out and allowed it to get even bigger and more complex.
The Financial Market is like Mount Everest balanced on its point upside down.
The Major Problem is ABSURD Valuation! The US employment numbers are always fabricated to PUMP the US Stock prices artificially!
Also, increasing corporate taxes means no more stock buybacks to increase the stock price.
We already have double-digit inflation and double-digit unemployment.
Wars and covid are not FREE! Too late, the debt needs to be paid back, or the dollar is worthless.
Either way, we lose from printing too much.
Free money does not mean a healthy economy. Enjoy your gains.
No nation ever spent itself into prosperity. It’s not government money. There is no such thing. It’s money taken from the pockets of working Americans, and the great majority of it will be spent on favors to special political interests.
This Print unlimited dollars to PUMP the US Stock BUBBLE Policy is about to END TERRIBLY! The Market will COLLAPSE BIG time, and then you will find NOBODY to bet on America.
Patience you gambler! This MEGA BUBBLE will COLLAPSE BIG TIME very soon!
Dow Jones Industrial Fraud index was 16000 in 2016, and now up so much FOR NO REASON, in NO TIME! All the component companies are fundamentally the same junks as they were in 2016!
The US Stock Market is a Fraudulent system!
It looks like this Fraudulent System is back to a 30-40% monthly capital gains routine. NO NEED TO WORK! Just buy the stocks and get quick rich!
The companies generate $0 revenue but have Billions of dollars worth of market values!
ALL US Stock indexes will FALL back below March 2020 lows!
March 2020 Lows will be re-tested and blown out.
This will not be a 2020 correction/recovery.
Approximately 12 weeks ago, we entered a very different period for the markets.
This is gonna be a 6 to 18 month sideways - down ugly Bear market.
Wicked whipsaws up and wicked whipsaws down, but with a general downtrend to lows, no one thought possible again.
99% of the new inexperienced Pandemic Born traders will be wiped out completely long before we hit those lows because they have no understanding of what is really happening.
A Major Correction is imminent! All US Stock indexes will COLLAPSE BIG Time very soon. NOBODY will keep buying those BUBBLES!
Many Chasers will BURN in this Stock BUBBLE!
Sad but necessary.
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For how long will the US Government continue to PUMP the US Stock Prices artificially? Everyone knows that the US Market is in the MEGA BUBBLE; it is even more overvalued than Tulip Mania Bubble! The US Stocks are INSANELY OVERVALUED and OVERBOUGHT! The Valuations are impossible to justify!
For how long can the US Government run this fraudulent Stock BUBBLE, while Corporate revenues are tanking, Corporate and National Debt is Astronomical, the Valuations are beyond insanity, Political polarization is at max, there are ongoing and upcoming wars, the real resources are limited, Economy is Collapsing, Competition is intense, the Stock Dilutions are at record highs, everything is getting worse, China, Russia, and many other countries are set to ditch the US Dollar as an international reserve currency.
Now there are hundreds of thousands of companies worldwide competing for less revenue! The US Companies that barely generate revenue of one to two million are trading at 50-60 Billion Market values, while in Asia, the same companies with better fundamentals, 100 times more revenues, are trading at 99% less market value! The US Company valuations DO NOT MAKE Sense at all! Why would anyone invest in US Stock Tulip Mania while he can buy the 1000 times better company share for a 99% cheaper price!
The US Stock Market is a MAJOR PONZI SCHEME designed to patch fraudulent pension systems in the US temporarily! There is NO PROPER Revenue Collection by the IRS since 2016. Taxes are extremely Low, and Nobody is paying custom duties! People want more free money without working, more free checks, more capital gains, more stock hypes every day! This fraudulent "no need to work" policy of the US Government will END TERRIBLY very soon! Inflation is skyrocketing, but the Government is lying about inflation!
Recessions usually take place every 7-10 years. We hadn't had one since the great recession.
How to spot a bubble?
We're now 12 years running, no sign of a single recession or a pullback.
Manufacturing and production come to stand still, millions unemployed, yet the economy is booming!
Kids as young as ten are talking about stocks and day trading meme stocks like GameStop.
Zombie companies issuing new debt and making public offerings, yet their stock still skyrockets.
480 Electric Vehicles manufacturers in China alone, EVs are the buzzword now.
What next ?Space! The final frontier.
Why not. Let's keep the bubble blowing.
Manufacturers will offset the cost by sending jobs out of the country. Can't wait to see all those made in Taiwan and made in china tags.
China is currently trying to stop the flood of money entering China from the US and EU. So much money's pushing the Yuan higher. People are starting to realize the dollar is over .
And are getting out of dollars and into crypto, gold, real estate, old cars, art, and China. The growth potential from their belt and road scheme is staggering. It's like when the US first built the coast-to-coast railway, only much bigger.
I tend to only aim to ride Wall Streets' wave and jump off before the major tops (same approaching major bottoms). The market does put off signals that one can usually detect when we’re approaching that business cycle high or the Bear market low.
Historically most money is lost near the long-term tops and the long-term bottoms.
It doesn’t bother me to miss 3, 6,or even nine months near a major top or major bottom.
(2020 was an anomaly. It really doesn’t count as a normal major bottom. It was not a market-related event that caused that wicked bottom and subsequent bounce through 2020).
With respect to the buy and hold theory.
That said, most of the professionals that espouse that mantra do not live by that advice !!!
They’re moving millions/billions as the markets are approaching major tops, major bottoms, and often everywhere in between !!
I cannot comprehend the amount it ignorant, inexperienced investors/traders that are involved in the markets at this point.
In and of itself, that alone is indicative of the fact that we’re in a massive bubble that IS going down hard.
This market HAS been in an uptrend since 2010.
This market HAS now entered a Bear market .
This market will be cut in half in the next 6 to 18 months (regardless of what the talking heads say publicly).
THAT is for sure.
Anyone that bought/buys into this garbage will be slaughtered.
99% of the inexperienced Pandemic Born Traders WILL be slaughtered in the next 6 to 18 months.
This mess has only JUST begun.
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The market isn't spiking and in a forever boom!
ReplyDeleteNope.
The dollar is crashing, and crashing hard!
Look at fuel and food! Everything spiked, costs have risen. That is inflation. Or worse, panic from the suppliers, which will be unmanageable once real inflation starts!
This is the implosion, this is the full crash in full view.
They are just letting it ride out,
Last one holding the check, is gonna get stuck with the bill.
Acting as house in the ponsi fiat game, i will promise banks will never take a loss.
Every mortar business paying 28% tax... As soon as it hits grocery, were all going to be starving folks.