👉The US market is now 228% to GDP , Will The Stock Market CRASH Under Biden ?

👉The US market is now 228% to GDP , Will The Stock Market CRASH Under Biden ? The US market is now 228% to GDP , Will The Stock Market CRASH Under Biden The Market has been in trouble since 2008. Quantitative easing offset the last recession, and no one has done anything to change that. The market has been overpriced before the pandemic, and it's out of control now. There is a disconnect between Wall Street and Main Street. The market hasn't made sense for me for the past few years, yet I expect my 401k to be about 70% of the current value in a couple of years after the market correction(s). For those of us who understand the structure of the market and all the inter-workings behind the curtain, the ongoing manipulation of this market is now beyond reproach and blatantly obvious. The market today is the exact same as when I watched the mortgage crisis unfold for a couple of years prior to the inevitable destruction - those of us who understood what was going on saw it coming and were waving the flags, but to no avail. Wallstreet and all those lining their pockets, including politicians, turned the usual blind eye...then put the guardrail up after we went off the cliff, acting as though they were all saints out to rescue and protect Main St. I suspect it will be the same movie again. Historically people had the option to invest in bonds or park money in CDs that actually paid interest. Due to Fed intervention, stocks are the only game in town. Real estate is even more overvalued. What's most frustrating is that we are paying extremely high prices for stocks that are inflated by nothing but hot air. As the stock prices increase, our purchasing power decreases, which really sucks and is discouraging for us long-term investors. If we can't get a decent long-term return, then what's the point of all of this! The Fed has been targeting the “wealth effect” of higher asset prices to goose consumer spending starting in the mid-1980s with Alan Greenspan. If asset prices ever fall, aggregate demand will collapse. Take away massive debt expansion, and the ephemeral wealth effect of artificially inflated asset prices and GDP will probably drop by 50%! We have a “fake” economy!! Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Markets are indeed at high levels but not like in 1929. Back then, the DOW: GDP ratio prior to the crash was two times what it is now. So relative to current and forecasted GDP numbers, the DOW has reached the point of flashing a "sell" signal, and investors should become defensive at this point - this same signal was ignored in 1928, setting up the worst market crash in history one year later... Additionally, if you study the market patterns during the Spanish Flu pandemic period, you'll note a huge correction that occurred from the end of 1919 to 1921 - following the excitement that the pandemic had ended but the realization that the economy was damaged. Watch out! There wasn't the fiat system in 1929. This one can squeeze the average person much harder until they are willing to take to the streets. The Great Depression began with the stock market crash, and the primary reason for the crash was leveraging or buying stock with borrowed money. Today’s equivalent to leveraging is derivatives. Derivatives work are backed with borrowed money. Europe has been at negative interest rates on its sovereign bonds (debt) since 2014. This means governments below the "zero bound" level can not raise more real money as their bond markets are broken. They can not continue their government spending in the absence of more of "other people's money" (Margret Thatcher). So, socialism is going broke as no (Western) government can afford their respective public employee pensions and entitlement programs, including the United States. So, the advent of the so-called "Great Reset" has been floated by the World Affairs Council in Davos, Switzerland. This global financial reset is simply a way to hide government insolvency and eventual cancellation of each country's sovereign debts. It's coming! First to Europe and lastly, to the United States. Part of the reset is a global cancellation of both the public debt and the currencies and conversion to a digital currency, sans banknotes. It's going to then become Communism 3.0, and many Americans will eventually be distressed to discover the plot, but not in time to save themselves. The stock market is due for a correction and, in my view, at least a solid -20% across-the-board for market indexes. It could be more severe if it occurs later rather than sooner. Timing is, as always, a Great Unknown. Hedge your risks and do not go all-in at current valuations unless you plan on holding for a very long time: Central Bank QE & stimulus or the anticipation of a new one. After Powell's mistake in late 2018, where he tried to raise rates and roll QE back, the market told him they wouldn't stand for it, and we had the Christmas eve massacre. Then late 2019, the hedge fund junkies went to the repo window and begged for a fix and got it. Covid was just the trigger. The conditions were ripe. The point is: despite market favorable acts, the Fed still did not prevent a couple of big sell-offs. Tough one to hang an investing thesis on. And I think we're lining up again for a fat tail event. We're looking at another lost decade - that's what the CAPE is good for, flashing a warning about useless long-term average annual returns. It will no doubt go up, go down, go up and down, but overall, by 2030, you'll have made less than inflation. By the way, we're only up here at these lofty heights because of trillions in tax giveaways thanks to the Fed allowing massive buybacks, and this year 3 or 4 TRILLION in 'funny money.' Better hope that Fed printer keeps going 'brrr,' because at this rate, they'll have to print 6 trillion next year, and nine the one after that, just to keep the patient breathing. Free money is one of the most expensive types of money there is. Governments are not good with our money. If it wasn't for the central bank printing money every time, there is a disaster, and the stocks will go down.The crash will probably set off circuit breakers for a few days and be one of the quickest 40% free falls in history. There are four main puzzle pieces to which the economy is tied to, and it begins with the government and banksters printing of money. It has; and will continue to affect these puzzle pieces. Commodities, Currencies, Stocks, and Interest Rates. Commodities? Up 100% since the bottom last year in April. Currencies? " Gold backing of the currencies kept the central banks on a short leash, but since 1971 there has been a free for all monetary bonanza in the US and most of the world." Stocks? " The US market is now 228% to GDP. That is 88% above the long term trend line and substantially above the 1999-2000 valuation when the Nasdaq crashed by 80%." Interest Rates? The current policy is to keep rates low for TWO purposes. " The first is to keep stock rising. Because high stocks give the illusion of a strong economy and strong leadership, thus it is the perfect tool to buy votes. Secondly, with a US debt of $28 trillion, free money is a matter of survival for the US. Imagine if rates were determined by supply and demand. Every president in this century setting a new record. Bush almost doubled US debt from $5.7 trillion to $10t over eight years. Obama doubled it again from $10 to $ 20t and Trump set a new four-year record with an 8 trillion dollar increase. With debt going up exponentially, an appropriate market interest rate would be nearer 10% than the current short-term rate of 0%. " As long as the Feds keep printing, the illusion will continue for the short term until the day arrives that they decide the time is right to CRASH it all and bring about a new world financial order with digital currencies. In the process, millions will lose almost everything ever made in stock market profits. A peek into the future will prove that it is about to happen. The peek of proof is when major bank stockholders and the elite investing groups begin to sell off massive amounts of stock portfolios at the same time. Then the folks with common sense will follow suit before the proverbial S H T F... Those with 401k's that are tied up into company investment funds will be left holding the short end of the stick, too, as there will NOT be any way possible to get those investments.....OUT! Personal portfolios will be left to meltdown because the Brokers will just refuse to believe that things will NOT turn around in the short or long term run. The Fed open market desk has a limited list of assets it is allowed to buy at any given time and a limited AMOUNT that they are allowed to buy. They CANNOT support the entire market. 2.3 Trillion is a micro-fraction of the money they would need to support all equities and bonds in all markets. The bond market is WAY bigger than the equity market. However, the Fed WANTS you to believe they can support the market, so when things start to take a dump, you'll HESITATE to pick up the phone to your broker and panic sell. But, when a downturn happens, the Fed cannot and will not reach out and purchase ALL assets. This policy the Fed is currently pursuing is DANGEROUS! Believe me, all of those dollars finding their way from the Fed into ETF's, MBS's, CLO's and Corporate bond funds WILL eventually find their way ETFs the general economy, and when that happens, inflation will hit hard. When that happens, bond yields will SPIKE. Investment Grade BBB- corporate bonds will no longer be able to afford their coupons, they'll get downgraded, pension funds (the only holder of corporate debt today) will be forced to sell as pension funds are fiduciaries and NOT ALLOWED TO HOLD JUNK. This will result in a fire sale of both bonds and equities, where there are no natural buyers for either, and the whole house of cards will come crashing down. Think about it! Free market forces will eventually crush ALL central banks .They are a couple of trillion times more powerful. In fact, the central bank's actions over the past 30 years are actually destroying the real economy. There is no way the global economy could survive on its own without constant stimulus and intervention. The global economy has atrophied thanks to central banks' constant stimulus and interventions. S&P EPS will fall below $30 over the next few years. Let's see if central banks can support equities prices at a PE of 120! IF it were possible to keep markets artificially inflated on into perpetuity, then the many presidents of the past would have done just that. We would all be millionaires, everyone could retire with plenty of money, the market would never go do—everyone ,PEOPLE. Nothing stays up forever, and the markets ALWAYS win by returning to the mean. PERIOD. I hope this saves you money and indigestion. This was The Atlantis Report. Please Like. Share. 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