Fiat Money – The main driver behind boom & Bust Cycles

Posted on March 1, 2021 by Alberto Mancini

Fiat Money The Root Of All Things Bad

Fiat Money: The mother of all evils is fiat. Without Fiat, none of the above developments would have taken off. As money can be created out of thin air, those in the know have unlimited mechanisms to increase their wealth easily. The devastating boom and bust cycles the markets experience are not natural; they are created. Each cycle is pushed to the MAX in order to create more of an opportunity for those in the know how. Now if you control the money, you can purchase all the main media outlets. When you control the media and the money supply you are king of the hill; less than 10% of the populace is strong enough to resist from falling for what they have directed to see.

The left and the right are being directed;

They are both being played, and none is the wiser. This technique is used everywhere. The strategy employed is to provide the masses with two to three options to give them the illusion of choice but all the choices lead to the same outcome, and that is what they fail to see. When one takes an extreme position it does not matter whether you are swinging to the right or to the left, you are being controlled and it’s impossible for that person to see anything else besides the data they have been fed.

So how does this all tie up; all those events we briefly mentioned are being used and will be used to polarise the crowd even more? What is immoral today is moral tomorrow; what changed? The only thing that changed was the perception. So if you program children young enough with the perception you want, you can make them accept almost anything as moral, and that is what the public education system is all about. Remember nothing is free and what appears to be free usually ends up costing you 10X more down the line. One wise man I knew would often use this sentence when anyone made references to free stuff. He would say I am not rich enough to accept free things.

Fiat Money is behind everything

As Fiat is behind everything, and the money supply continues to go ballistic, we can expect levels of polarisation to soar to levels that are unimaginable today. With an unlimited supply of money and a vast understanding of the topic of Mass psychology, there is almost nothing in place to stop the top players from pushing these trends to their limit. The only defence is not to allow your emotions to do the talking, sit down and imagine its reality TV minus the Boob tube.

We have gone on record for several years on end, stating that market crashes are nothing but buying opportunities and today we provided a brief glimpse into the reasoning behind this stance. There is no way the Fed is going to allow the markets to crash and burn. They will create the illusion of a crash, and the masses will react in the way they have been programmed to react; dump the baby with the bathwater. The conniving top players will come in and scoop everything. What separates a correction from a crash? Your entry point; the early bird gets the worm, and the late bird has to contend with the bullet. That is why mass psychology states that one should sell when the masses are euphoric and buy when the masses are panicking or in a state of uncertainty.

Take a look at these charts, and a pattern will start to emerge

The shaded areas represent recessions, and a recession usually follows a disaster. After each recession, the currency in circulation continued to soar.

The same thing occurred with M1 money stock, and after each recession, the M1 money stock surged even more. Look at the spike after the 2008 financial crisis.

Moreover, the same can be said of the monetary base, but the move in this chart was explosive after 2008.

In 1790 the national debt was a minuscule $75.4 million, and today we add more than that on a monthly basis. So when experts especially from the “hard money camp” state that the masses will revolt one day. The only part that is true in that sentence is “one day” but that day could be decades away from today because their perception has been altered. They believe that the dollar is good as gold and as long as they believe that, Fiat has no chance of being unseated and nothing is standing in the way of the national debt moving to $100 trillion. If it could move from $75.4 million to almost $21 trillion without the masses revolting; the move from $20 trillion to $100 trillion is paltry by comparison

So what stands out is that the principles of Pavlov have been used wonderfully against the American and now the world populace at large. The masses have accepted that if there is a crisis, the government will find a way to solve it. Indeed they will find a way, but they will pass the bill onto the unsuspecting masses in the form of inflation and taxes; double whammy for inflation is a silent tax.

Therefore we can make the following conclusions

Nations will continue to take on more debt; the US will lead the pack. In order to do this without interference from the masses, disasters and divisions will have to be created. Remember the saying conquer and divide or united we stand but divided we fall. The only ones falling will be the masses. History indicates that the ones that are least able to pay always pay for the lion’s share and they do so for the disasters created by the very people that are sending them the bill. There are no free meals, just illusions of free meals.
If the above premise is correct, then the next conclusion is that the governments will never allow a repeat of the great depression. Today’s society will never accept hardships like that; they will string the people in charge of the nearest tree, but this is precisely the mindset the top players fostered. For in the guise of helping the masses than can fleece the living daylights out of them. Ultimately this informs us that every market crash no matter how bad or strong will prove to be a buying opportunity for it gives these players an excuse to ramp up the money supply

A disaster needs to be manufactured in order to provide the masses with a solution

You can only provide the masses with a solution if you manufacture a disaster that appears to be so terrible that the masses will accept conditions they would not have accepted before the disaster because they have been led to believe the aftermath will be infinitely worse. It is a win-win situation for the top players; they get their cake and their pie. This is why we do not fear stock market crashes because we understand the game plan and we know that the masses will always be used as cannon fodder.

Having said that, jumping and buying stocks when the markets are crashing is not an easy thing to do. We spent over a decade in coming out with the trend indicator, and we have our custom indicators to inform us of when a trend change is close at hand or when the markets are exhibiting definite signs of a bottom.

What are the average player’s options?

Take time to understand the main principles of Mass Psychology as without that you will give in to fear every time the market’s pullback strongly. Understand that our first reaction is to flee when confronted with any danger, don’t fight that feeling, study it and understand it for it is. When you study it, you will come to see how bad such emotions are and in doing so, you will have moved to the stage where you will have the power to say yes or no when exposed to a similar situation. Read history books; you do not have to learn from your experiences only; you can learn by studying the reactions of other people

Once you have mastered that, find 2-3 technical indicators that appeal to you. They must appeal to you; don’t just choose them because they sound fancy or they are promoted as being the best ones out there. Once you find some appealing technical indicators, study them and look for patterns. Technical analysis is like art; beauty is in the eye of the beholder. Use long-term charts preferably weekly and monthly charts.

Courtesy of Tactical Investor

Random views on FIAT money

Boom and Bust Cycles Are Primarily Due To Fiat Money

Make the Masses focus on other factors so they don’t focus on the Fiat Money Factor
The ploy from the day we got of the Gold Standard has been to redirect the masses attention. The masses are directed to focus on they could buy with all this money. In other words, Fiat money appears to be incredibly valuable, even though it has no intrinsic value.

To cement this illusion, a small segment of the population is paid fantastic salaries and their flamboyant lifestyles are broadcasted for everyone to see. The goal of creating divisions in society is to make one group of individuals wish for the lifestyle that this other group is living. The more divisions you create, the greater the cover; in other words, these divisions are created to ensure that the masses forget the real task at hand. This has worked very well, for almost no one today questions Fiat. Their main agenda today is to make more money so that they can lead a better life; little attention is paid to the fact, that they have to work harder and harder for less and less. The money they are paid is constantly being diluted; this is the true defintion of inflation. An increase in the money supply and not an increase in prices. Rising prices are only the symptom of the disease. Full Story

World FIAT Currencies List

Unlike commodity money which is covered by the value of the precious metal it was created from, usually silver or gold, the value of fiat currency is dependent on the interaction between demand and supply forces. The parties, buyer, and seller, engaged in its exchange will come to an agreement on its value.
Fiat is a Latin word. Translated into English, fiat means “Let it be done”. Fiat Currency is money that does not have intrinsic value but is recognized or accepted as a form of legal tender through government regulation. To read more about fiat currencies click on the following links to jump to the correct sections:
While most money was backed by physical goods or precious metals, fiat currency is contingent on people’s belief and faith in a country’s economy.

Many of today’s paper money is considered fiat money. They do not carry user value. The function of the paper money is to facilitate a payment. A government would produce coins out of precious metals and manufacture paper currency that would have an equivalent value in terms of a physical good. In the case of fiat currency, it cannot be redeemed. Neither can fiat currency be converted.

Fiat currency because popular and widely used in the 20th century particularly during the period of 1968 and 1973 when the Bretton Woods Agreement was terminated and the United States no longer allowed the U.S. Dollar to be converted to gold. Full Story

Billionaire Tim Draper: Only Criminals Will Use Fiat Money, As Cryptos Will Hit Mainstream in Next Few Years

Legendary billionaire venture capitalist, Tim Draper has predicted that in the next five years, fiat currencies will only be used by those involved in illicit activities.

According to the well-known bitcoin (BTC) bull, cryptocurrencies will achieve mainstream adoption within the next few years – while fiat money will mostly be used by criminals. Draper’s comments came during an interview (on February 18th) with Fox Business in which he told the financial news outlet that cryptocurrency transactions can be tracked easily through block explorers.

Draper, who acquired 30,000 bitcoins during a US Marshals Service auction (after they had been seized from Silk Road’s black markets), remarked:
“The criminals will still want to operate with cash, because they catch everybody who is trying to use Bitcoin.”

Last year in August, an agent working for the US Drug Enforcement Administration (DEA) had said that it was easier for her department to monitor cryptocurrency transactions – when compared to illegal deals conducted using fiat money. The agent had explained that block explorers provide advanced tools which allow government agencies to accurately track crypto transactions on the blockchain.

During his latest interview, Draper also mentioned that he thinks the fiat money in his bank account is not as secure as his cryptocurrency holdings. According to the business tycoon:
“My bank is constantly under a hack attack.”

Full Story

Business Investing and Stock Market Uncertainty

Posted on February 28, 2021 by Alberto Mancini

Business Investment; the best time to buy is when the crowd is scared

Business investing: One of the best places to invest in is the stock market, provided one understands how the masses operate. The mass mindset is wired for failure; it is programmed to panic when anything stressful presents itself and that is very dangerous when it comes to the stock markets. In short, as a business investment, the stock market could be considered to be one that provides the best return on capital provided one does not allow one’s emotions to do the talking.

Look at the recent headlines; all the top players are going out of their way to create a mountain out of a molehill. I wonder why? Are they doing this because they love the masses so much? We think not; the idea is to fleece the masses both ways; on the way and on the way down.

Nothing drives the masses more insane then uncertainty. Suddenly create the illusion of uncertainty, and all hell will eventually break loose. All hell is the secret code word for long-term opportunity. Individually these stories are not a big deal, but what stands out is all these comments were made around the same time; it almost seems like a coordinated event.

Even Stan Druckenmiller doesn’t know where markets go next

After a wild three months in the financial markets, the billionaire investor is warning that trading conditions may become even more challenging as central banks withdraw stimulus from a global economy that’s already slowing. He anticipates lousy returns on stocks for years to come and has been buying US Treasuries on the expectation that yields will keep dropping.

“If you look at the indicators I have historically used in my business, they’re not red yet, but they are definitely amber. https://bit.ly/2Q1qgYY

Greenspan Says Politics Today Are Unlike Any He’s Seen

Former Federal Reserve Chairman Alan Greenspan said the current state of U.S. politics is unlike anything he’s seen.

“I was in the U.S. government for almost 20 years and I’ve never seen anything remotely close to what we’re observing today,” Greenspan said on Bloomberg TV on Wednesday. “I think the economic outlook is being significantly affected by the poor politics,” he said, adding that he’s “very much concerned.” https://bloom.bg/2SmATr2

Janet Yellen is worried about the next financial crisis

Janet Yellen is worried about the next financial crisis and told a small, intimate audience at an event Wednesday night in Washington, D.C., that her biggest concerns were the potential for reversal of financial safeguards put in place after the crisis and growing corporate debt.

“I am worried that we are in a deregulatory mode and I see a lot of pressures building in the system to go further to really weaken fundamental safeguards that were created in Dodd-Frank. We are a decade after the financial crisis so that would be worrisome and wrong to do,” Yellen told the audience at the Women in Housing and Finance holiday event. https://on.mktw.net/2SOVuEu

What was the difference between the Feb 2018 correction and the current one?

At least there was a proper trigger for that event. Bullish sentiment surged to a seven-year high, even though it only maintained this reading for roughly ten days. Had that correction morphed into a back-breaking correction, we could justify it as at least two triggers were there; bullish sentiment soared to a seven-year high, and the markets were trading in the extremely overbought ranges. This time around, bullish sentiment did not even make it to the 54% mark, and our indicators had already pulled back from the overbought ranges. In fact, they were dangerously close to the oversold ranges on the monthly charts.

Higher interest rates were never issue

The next interest rate hike was already priced in and so were the effects of the tariffs. However, when these events were weaponized, they started to become an issue. Now that the big players have seen the benefits of this type of attack first hand expect it to be used ruthlessly in the years to come. However, if you stop and focus on the forest as opposed to a single tree, this weapon will have no effect on you.

After everything was said and done, if you had held onto your shares from the 2008 crash and then added more as the market tanked incrementally, you would have made a fortune ten years later. Let’s look at some random examples. To simplify matters we are going to assume that one lot of each stock was purchased roughly at the highest price during the 2007-2008 top and an equal amount was purchased at roughly at the lowest price in 2009. However, any person employing simple Technical Analysis and Mass Psychology would have achieved a better average entry price, even though they did not purchase at the top or the exact bottom.

Courtesy of Tactical Investor

Random views on Business Investing

The Stock Market: Risk vs. Uncertainty

Life is risky. The future is uncertain. We’ve all heard these statements, but how well do we understand the concepts behind them? More specifically, what do risk and uncertainty imply for stock market investments? Is there any difference in these two terms?

Risk and uncertainty both relate to the same underlying concept—randomness. Risk is randomness in which events have measurable probabilities, wrote economist Frank Knight in 1921 in Meaning of Risk and Uncertainty.1 Probabilities may be attained either by deduction (using theoretical models) or induction (using the observed frequency of events). For example, we can easily deduce the probabilities of the possible outcomes of a game of dice. Similarly, economists can deduce probability distributions for stock market returns based on theoretical models of investor behavior.

On the other hand, induction allows us to calculate probabilities from past observations where theoretical models are unavailable, possibly because of a lack of knowledge about the underlying relation between cause and effect. For instance, we can induce the probability of suffering a head injury when riding a bicycle by observing how frequently it has happened in the past. In a like manner, economists estimate probability distributions for stock market returns from the history of past returns.

Whereas risk is quantifiable randomness, uncertainty isn’t. It applies to situations in which the world is not well-charted. First, our world view might be insufficient from the start. Full Story

How Do Investors Respond to Uncertainty?

By Jyoti Madhusoodanan

Uncertainty in the economy—triggered, say, by a change in government, a diplomatic conflict, or a turn of the business cycle—is usually considered bad news for people who want to invest their money. But a new analysis from researchers at the Yale School of Management and Northwestern University looked at an unprecedentedly wide range of markets and found that investors are more concerned about actual volatility in prices than periods of high uncertainty. Indeed, their analysis suggests that investors historically have viewed periods of high uncertainty as being good news.

“There’s good reason to believe that just uncertainty by itself is bad,” says Yale SOM professor of finance Stefano Giglio, who led the study. The theory goes that a jump in uncertainty makes firms and individuals less likely to invest, driving down growth. “But we also know that when there’s high volatility there’s also high opportunity. So it wasn’t entirely clear: Are investors truly worried about market uncertainty?”

To answer that question, Giglio and his colleagues examined the prices of options, which are contracts that give investors the ability to buy or sell assets at a pre-specified price at some point in the future. They drew these data from the CME group, which includes information from the Chicago Mercantile Exchange, the Kansas City and Chicago Boards of Trade, and the New York Mercantile and Commodity Exchanges. Full Story

Understand the difference between risk and uncertainty while investing

Most people are unable to appreciate the difference between risk and uncertainty. When you invest in the markets or in any other asset class, there is an element of risk.

If you have seen investors getting confused between risk and uncertainty then they are not the only ones. Most people are unable to appreciate the difference between risk and uncertainty. When you invest in the markets or in any other asset class, there is an element of risk and also an element of uncertainty. In many ways, you can say that uncertainty is a very extreme form of risk. You can predict risk based on a mathematical formula and set the limits. In case of uncertainty, it is hard to set limits. That is why uncertainty cannot be managed; it can only be insured against.
Risk has a negative connotation and a positive connotation to it. For example, stock markets hate risk and any stock with a higher degree of risk gets a lower P/E valuation. What is the positive connotation of risk? Remember, all your investment decisions are risk-return trade-offs. To earn higher returns, you need to take higher risks. However, higher risk, by itself, does not guarantee you higher returns. How do we define risk? The risk is the potential for loss. Full Story

Long Term Trends: stock market bull vs bear

Posted on February 27, 2021 by Alberto Mancini

The monthly chart of the Dow going from 1985

Stock market bull vs bear: Each point on this chart represents a month’s worth of data; the worst one day crash (black Monday) is just an insignificant blip on this long-term chart, clearly proving that until Fiat money is eliminated that stock market crashes from a long-term perspective represent buying opportunities.

The yearly chart of the Dow from 1985

The same chart but now each point represents a year’s worth of data; one could argue that depending on the time frame one chooses, a back-breaking correction on the daily and weekly charts might appear as a small event on the monthly charts and almost a non-event on the yearly charts.

The stronger the deviation, the better the opportunity; markets always revert to the mean. No matter how much one might be tempted to disagree, the above charts state otherwise.

There are two main underlying themes behind every single market crash; a euphoric crowd and an extremely overbought market. Both elements were missing this time around, clearly highlighting that something else is at play here, and it smells dangerously akin to market manipulation. Market manipulation via weaponized news?

From a long-term perspective, this sharp pullback is creating another once in a lifetime buying opportunity event. The crash of 2008 was one of the most painful in recent history and yet despite this vicious pullback; the Dow is still trading well over 200% above its 2009 lows.

Another myth that is peddled over and over again is the issue of how long it takes a market to recoup it has lost gains. Our response is who cares? What matters is the stocks you are buying and not a particular market index. A vast number of stocks had already tacked on gains of several hundred percentage points before the Dow traded above its 2008 highs. The same is going to happen this time around. Strong companies will recoup their gains 2X to 3X faster than the broader markets, so when the Dow trades past 27K, some of these stocks will be showing gains in excess of 100%.

So what is going on now?

Why are the markets acting differently; one-word weaponized News. The action has been downright brutal, but something was off, the crowd was never euphoric, and the markets were not trading in the extremely overbought ranges.

The markets had already priced in Tariffs and a rate hike, but then things changed. Suddenly Trump had to emphasise that he is “tariff man”. Then he starts taking pot shots at the Fed. The Fed, in turn, takes shots at him, albeit indirectly, and the media goes ballistic. We are not taking sides here, what we are trying to portray is that old news was and is being turned into something sinister. Moreover, not a day goes by without some old nonsense being respun into a scarier version of the original story. When spin doctors are in charge of the media you need to take their sage advice with a shot of whiskey and a barrel of salt. In other words, when they scream you sing and vice versa. Mass psychology states that stock market crashes are buying opportunities; end of story.

Courtesy of Tactical Investor

Random Views on Long Term Trends in stock market 2019

Stock Market Tantrums Are Over, But For How Long?

Equities have been behaving like a recession is looming. That dire outlook seems overdone. While major global stock markets were battered in 2018 – and even the initially resilient U.S. Standard & Poor’s (S&P) 500 stumbled – we still expect equities to deliver solid returns in 2019. Assuming no price-to-earnings (P/E) expansion this year, and tagging on a 2% dividend, the S&P 500 could return 8%. Any modest P/E expansion could deliver 12% returns. Bank earnings this week, including JP Morgan and Wells Fargo, are likely to restore some faith in equity markets over the short-term.

However, trade tensions between the U.S. and China and fears over Federal Reserve System of the United States (Fed) tightening are definitely taking their toll on investor sentiment. Earlier in January, Apple posted a reduced revenue outlook, blaming Chinese demand, causing its stock price to tumble. Yale University’s Stephen Roach warned that it was “the canary in the coal mine.”

These fears could strangle growth, but fundamentally, the bleak backdrop for equities is starting to improve. Investors want evidence that the Fed is not on autopilot, and will continue to be hyper-sensitive to data disappointments until they get some positive U.S.-China trade news. A reduction in these risks could see an expansion in the P/E ratio – delivering a boost to equity markets. Full Story

Sven Henrich: My 2019 stock-market outlook

Cataclysmic action in the fourth quarter left investors shell-shocked, as U.S. stocks plummeted and over 90% of dollar-based asset classes fell for all of 2018.

Macro monsters from trade wars, Brexit, slowing economic growth, a slump in global property prices, political uncertainty, yield-curve inversions, deficit explosions, technical breakdowns, etc., are lurking everywhere, leaving investors blindfolded while they try to navigate highly volatile market waters in search for a safe destination in 2019.

As we learned in 2018, extremes can become more extreme, long-term trends matter, patterns matter, divergences matter, technical disconnects matter and now we’re dealing with the aftermath and their implications.

My main market message for 2019: Pay close attention and stay fully informed. There are a lot of complex moving technical and macro pieces driving markets and the global economy that make for a foggy outlook for the year ahead.

Wall Street tends to focus on a destination when it projects higher year-end target prices. Indeed, as in 2018 and in 2008, Wall Street is again projecting higher prices for this year. While higher prices are always a possibility, my focus in this report is on the journey rather than the destination, as I expect wild price swings within the 2018 range (2,340-2,941 points in the S&P 500 Index SPX, +0.12% ) and possibly a much lower range still to come. Full Story

Stock Market Forecast For 2019: 7 Critical Trends To Watch

The new year begins with a gnawing question: Is the stock market correction of the past three months a harbinger of an awful 2019, or a launchpad for a new bull market? While it’s folly to make a decisive stock market forecast for 2019, a few trends hold clues.

On the face of it, financial markets seem to sense trouble. On Christmas Eve, the S&P 500 index hit the 20% threshold for a bear market.

Few experts see a recession, but signs of slowing economic growth are piling up. The 10-year Treasury yield has fallen to the lowest since April, even as the Fed tightens and unwinds its quantitative easing program.
Of all these factors, two stand out because of their unpredictability and consequences: trade policy and interest rates. The trade war can expand suddenly into multiple industries and cause spillover effects. Markets fear Fed rate hikes will overshoot, sending the economy into recession.

Here’s a look at each of the seven factors, plus tips on how stock market investors can prepare for whatever 2019 brings.

1. Stock Market Volatility
For much of 2018, the stock market tolerated a trade war, Treasury yield anxiety, Europe’s political spasms and other risks. In the final months of the year, investors could bear it no longer. As 2019 begins, the market has to pick itself up from the worst correction since 2011. On Dec. 20, the Nasdaq sank to a bear-market depth. Full Story

Stock Market Correction

Posted on February 26, 2021 by Alberto Mancini

What is the difference between a Market correction and a back-breaking correction?

A sharp stock market correction is the thing that we encountered in Feb of this current year. The pullback is sharp and quick, and the dread dimensions rise significantly. A backbreaking revision is unique. The term itself is demonstrative of the distinction. The pullback is exceptionally solid however the unpredictability is crazy, and the market seems, by all accounts, to be bipolar. Chaos is by all accounts the request of the day, and even the absolute most impassioned of bulls begin to scrutinize their stance. Every positively trending business sector encounters one such adjustment. Be that as it may, it is difficult to tell ahead of time which redress is going to fall under the extremely difficult category. Trying to figure out which adjustment falls in this class has an exceptionally high open door cost. It is hard to break out of the “uneasiness arrange” in the event that you have been stuck in it for quite a while. These brokers in the long run get their desire of solid adjustment, however they are scared to the point that they can’t act; they keep on expecting that the market will prop up lower and lower.

Advanced warning for market correction

We expressed in July 2017 that the there would be one revision where the Dow would shed 3500-5000 points.

Without a smidgen of uncertainty, we can express that there will be somewhere around one rectification that drives the Dow lower by 3500-5000 points before this positively trending business sector is over. Market refresh June 2, 2017.

Two help focuses become possibly the most important factor. On the off chance that the Dow closes underneath 2400 on a month to month premise, at that point we can anticipate that the pullback should fall nearer towards the 5000 point range. If the Dow closes beneath 23348 on a week by week premise, at that point the above standpoint will likewise hold. 23348 is the low the Dow set in April of this year. Market Update Dec 18, 2018

As the above help calls attention to taken out, we expressed that the following stage was for the market to test the 22,000-23,000 territories. That has happened, the following stage for the market is to step water while gathering up speed to slant higher. This stage will be pressed with unpredictability as the market powers the feeble hands to dump their stocks. Brokers who have experienced this stage before will perceive for it is; an ideal purchasing opportunity occasion.

So do not focus on what happens if the stock market crashes scenario; instead, focus on building a list of stocks you always wanted to own at a lower price. History and Mass psychology both illustrate that permanent stock market bears die broke and that stock market crashes have always proven to be buying opportunities; pull up and long-term chart and try to argue otherwise.

THE STOCK MARKET CORRECTION IS PURPOSELY BEING MADE TO LOOK WORSE THAN IT IS

It looks terrible, the media is siphoning apocalypse type situations, solid bulls are appearing of shortcoming, and even contrarian financial specialists are beginning to break. Unadulterated contrarians are more brilliant than the majority, yet they do have defects; the most brilliant financial specialists are the ones that put the standards of mass brain research into play. They watch the mass mentality, and they comprehend that notwithstanding when dread begins to crawl into the condition, they are constrained to ask this question: Was the group in a condition of rapture when the market beat out? In the event that the appropriate response is “no”, at that point regardless of how horrendous the image may look, the end diversion is that the group is being set up for a bogus descending move. And the ordinary reaction would “why”. Simple answer, this is an advanced form of Pavlovian training.

Take a gander at the above notion information; in the meantime refresh conveyed before today we expressed that bearish slant would come in the 45-47 territories; rather, it remains at 49, which is right around a seven-year high rather than a multi year high. We turned wary in Feb of this current year and put all our plays on hold in light of the fact that bullish assumption took off to a seven-year high; despite the fact that this flood in assessment was transitory, it was sufficient for us to turn mindful. Given the present pattern, the following refresh could drive bearish readings north of 50. This information was gathered up to Saturday of a week ago. At the present time the quantity of people in the bearish and unbiased camps means an astounding 80; this consolidated score nearly coordinates the perusing of the 2008-2009 base. The last time we had such readings was more than 10 years back.

Presently take a gander at the nervousness check, this is the most minimal perusing since the initiation of this measure and given the present pattern it could finish up redlining one week from now; we may even be compelled to broaden the range if the perusing is altogether higher than the current week’s perusing.

Let us look at some other factors

The S&P 500 is trading 14.3 times below 2019 earnings of $178 per share. However, we if remove the highly overpriced FANG stocks, it is priced roughly 12 times 2019 earnings. The historical average is 16.2
Value line states that over 100 companies have a forward P/E of 8 or lower; the last time this took place was during the 2008 meltdown but the economy was in shambles at that point, and that is not the case today.
A lot of fear is being created due to an inverted yield curve; first of all not all inversions lead to recessions, and secondly, there is roughly a two year lag between the inversion and the recession
Investors are sitting on hoards of cash; this refers to those that were active in the markets. If we include those who have avoided the markets, then one can state that there is a huge group that has missed this entire Bull Run. They will be dragged into this market for the top player’s need many suckers do dump their huge holdings onto.
The number of “Gloom & Doom” articles is surging, and soon we will have individuals predicting Dow 10,000. Insanity sells; investors were lapping the nonsensical targets of 100K, 200K and the last target of $1 million issued for Bitcoin with straight faces. Very few insane high-level projections have been made for the Dow.

Conclusion

A backbreaking correction is not easy to deal with. In fact, it is hard for everyone to deal with; the only way to get through it is to pull up long-term charts and examine previous corrections. When you look at those charts, try to imagine what the investors felt as the markets pulled back. If you experienced one of these previous corrections remember the thoughts flashing through your mind. One does not have to go back to far; 2008-2009 the markets experienced one of the most brutal of corrections. The master of “Gloom” were projecting Dow 2K during the height of the corrective phase; ten years later, one can clearly see how full of rubbish they were. These same guys are now laying out similar predictions.

The best time to kill a Bull is when it is fat, lazy and arrogant. The current bull is a lean and could turn into a “mean fighting machine” after the recent pullback.

Courtesy of Tactical Investor

BOJ can’t exit stimulus – Amazon is invading finance – NYC’s Empty Storefronts

Posted on February 17, 2021 by Alan Solomon

BOJ can’t exit stimulus when inflation below 1 pct – BOJ Gov candidate Ito

TOKYO (Reuters) – The Bank of Japan likely won’t be able to exit its massive stimulus programme while inflation is hovering below 1 percent, Takatoshi Ito, an academic who is a potential candidate to become the next BOJ governor, said on Wednesday. “What’s important is for inflation to accelerate, which would give (the BOJ) quite some flexibility in guiding monetary policy,” Ito, a Columbia University professor, told a seminar in Tokyo.

The BOJ has already laid the groundwork for normalising monetary policy by revamping its policy framework last September and gradually slowing its bond purchases, though raising its yield targets would be some time away, he said. “While inflation is hovering below 1 percent, it would be hard for the BOJ to exit (from ultra-loose monetary policy),” said Ito, who is considered a candidate to succeed BOJ Governor Haruhiko Kuroda when his five-year term ends in April next year. Full Story

As predicted the trend stated this would happen. More central bankers will join the inflation is not an issue club.

Amazon is invading finance without really trying

Many people believe that big technology companies will soon become major competitors to traditional banks. But Amazon has invaded their turf without offering many financial services—its mammoth cloud-computing business is instead reshaping how the financial industry works.

Amazon Web Services (AWS) is the biggest provider of cloud computing, which has “massively” lowered barriers to entry for financial startups, according to Antony Jenkins, the former Barclays CEO turned fintech entrepreneur. He says tech firms used to raise millions of dollars just to buy servers; now, people who want to take on banks can use the tech giant’s cloud to quickly set up systems. Full Story

Watch what will happen when they start to attack. And what nobody is talking about is China. Alibaba is going to rip this sector apart. They are already huge in Asia with Ant financial. Banks are going to face massive competition. And after that, the next sector to get ripped will be the medical sector. Many businesses that exist today will not be around ten years from today.

New York City’s Empty Storefronts And The $15 Minimum Wage

“Why Is New York Full Of Empty Stores?”

That’s the question posed by the New York Times editorial board in today’s paper, as it worries about a “scourge of store closings that afflicts one section of the city after another, notably in Manhattan and parts of Brooklyn.”

The editorial offers few answers to its question and at least one bad solution in the form of a new “vacancy tax” for building owners with unoccupied storefronts. But perhaps the most notable omission from the Times’ editorial is the board’s own role in exacerbating the city’s troubles through its advocacy for a $15 minimum wage.

The concerns about retail employment aren’t anecdotal: According to Labor Department data, 2016 was the first year since 2009 where New York City’s retail trade. Full Story

A trend in motion is unstoppable. Trying to control a trend is like trying to fight an anaconda with a toothpick. Wage Deflation is here to stay, and it’s going to gather incredible momentum in the months and years to come.

Millennials: Agrihoods – Investing – Retirement

Posted on February 12, 2021 by Alan Solomon

Agrihoods: The newest trend in millennial living

Millennials are harkening back to simpler days and creating communities on farms, surrounded by nature’s bounty and benefits. There are now more than a hundred of these neighborhoods — called Agrihoods — across the country, Full Story

This living in the nature type development is in its infancy and it’s too early to determine if it will become a trend. However, what this data reveals is that Millennials don’t have fixed values and have they are not loyal to any given brand or ideology. The next generation is going to be even more unpredictable for marketers seeking to make long-term projections. However, unpredictability is fantastic especially for those who put the principles of mass psychology into use. This is the reason many companies that look solid today will not be around in the years to come as they will either refuse to adapt or refuse to look at the situation from a different angle. One area that is going to experience a sea of change is the financial services industry.

Here’s why millennials would rather save than invest

Millennials are wary of entering the stock market.

New data from the latest Merrill Edge Report shows that, when asked what they’d be able to rely on in 20 years, millennials’ top response was their savings account, according to 66 percent of respondents.

When Merrill Edge asked older generations the same question, the majority of Gen-Xers (71 percent) said they’d be able to rely on their 401(k). The top response among boomers (54 percent) was their pension.

“In stark contrast to older generations who are relying on outside sources for their future financial security, millennials are looking to their self-created savings years down the line,” Aron Levine, head or Merrill Edge at Bank of America, writes in the report. “Millennials place even greater trust in their own stewardship than they do in their personal relationships with their significant other and friends.”

The report shows that young people today are taking a “do-it-yourself” approach to finance and investing, choosing to rely primarily on their own savings in place of vehicles like a 401(k) or IRA. Though many millennials do utilize these tools as well, there’s still an underlying feeling that their own efforts are more dependable.

Full Story

Methodology

This calculator estimates how much you’ll need to save for retirement. To make sure you’re thinking about the long haul, we assume you’ll live to age 92. But you could live to be 100 or incur large medical bills early on in retirement that may raise your costs even further. Social Security is factored into these calculations, but other sources of income, such as pensions and annuities, are not. All calculations are pre-tax.

https://www.youtube.com/watch?v=sxabThkIe5c

Experts Making Stock Market Crash Forecasts usually know nothing

Posted on February 11, 2021 by Alberto Mancini

Over the past several years the Naysayers have predicted the Market would crash and burn; we blatantly disagreed and opted instead to state that the market would continue to soar higher and higher. Despite the severe beating these naysayers have taken, they insist on regurgitating the same trash over and over again in the blind hope that by some miracle their insane ramblings come to pass. As soon as October was upon us, these experts started screaming at the top of their lungs. What was their latest prediction; a repeat of the 1987 Stock Market Crash. We immediately repudiated these predictions. Here is a brief excerpt from the article posted in October by Tactical Investor.

They never seem to let up on pushing this sewage onto the unsuspecting masses. This is a clear example of insanity in action; mouthing the same thing over and over again with the desperate hope that this time the outcome will be different. The outcome will not be different this time, at least not yet. These guys should focus on writing fiction for reality seems to elude them completely. For years we have stated (and rightly so) that until the sentiment changes, this market will continue to soar higher and higher.

The latest nonsense is to state market omens that have a terrible record of coming to pass are about to trigger a crash; ones odds are better if one looks at tea leaves, plays with skull bones or hires some monkey to throw darts at a board with the words up or down plastered on it. One has to determine the trend first and look at several underlying forces before one can attempt to predict where the market is headed. However, these fools read a book or two, memorise someone else’s theories and assume all of a sudden they are experts. Fundamentals and technical’s are both useless when used in isolation. One has to look at the emotion driving the markets. In other words, what are the masses thinking or doing? When one looks at the sentiment data, the conclusion is inescapable. Stock markets always crash on a note of euphoria and the masses are far from being happy.

Wall Street Experts Good For Nothing but Hot Air

Over the past 20 years U.S Markets have experienced two brutal crashes and on both occasions, almost all of the so-called Wall Street experts were caught with their pants down. The two cases in questions are the Housing bust and the dot.com bubble. Additionally, almost every two top economists failed to predict the great recession of 2008. On the same token, these Jackasses (otherwise known as experts) failed to predict one of the biggest bulls of all time.

Masses are not embracing one of the Most Hated Bull Markets in History

The images below speak a thousand words, so there is no need for us to add any commentary.

The Technical Outlook

While the Dow is trading in the extremely overbought ranges, any pullback will most likely end in the 21,000-21,500 ranges. For the correction to pick up steam, it would need to close below this level on a weekly basis. As the trend is still positive, the odds of the Dow crashing are very low. At the most, the Dow would test its breakout point which falls in the 18,900-19,200 ranges unless the trend were to turn negative suddenly or the masses suddenly embraced the market with gusto. At this point, the trend is strong and showing no signs of weakening. Remember that the markets can remain irrational for much longer than most traders can remain solvent by betting against it.

Inflation remains a non-issue on a worldwide basis

Central banks worldwide are either standing down or opting for rate cuts. This indicates that while the economy is improving somewhat, the global economy is far from healthy and low rates will continue to dominate the scene. In a lower rate environment corporations borrow more money and the new game is to use this money to buy back shares and in doing so magically improve the EPS.

Conclusion

When the Dow was trading below 20K, we stated that the next target was 21K; this target was struck in a few short months. After that, we raised the target to 22 and 23K. Now we will go on record and state that the Dow is likely to test 28,000-28,500 with a possible overshoot to 30K before it crashes. We will be providing our subscribers with an in-depth analysis of the path the Dow will traverse to achieve this target. We don’t expect the Dow to just shoot to these targets, certain requirements have to be fulfilled, but so far the Dow is following the path we expected it to take.

Before you listen to these so-called experts who seem quite happy to dish out faulty information, take a look at their track record. A simple search will reveal that over 90% of them are full of hot air and had any of these Dr’s of Doom followed even a sliver of their advice, they would have been blown out of the game long ago. The fact that they are still here tells you that they are trying to pan their sage advice to you in return for a certain fee; advice they would never follow.

A simple game plan

View strong corrections through a bullish lens. This game plan will remain valid until the masses turn bullish or the trend turns negative. The stronger the deviation, the better the opportunity.

Published courtesy of the Tactical Investor

Companies will opt for Robots

Posted on February 10, 2021 by Alberto Mancini

Manufacturing output continues to improve, even though the number of manufacturing jobs in the U.S. continues to decline and this trend will not stop. Jobs are not going overseas only, in fact, machines are replacing most jobs. As this trend is in the early phase, the momentum will continue to build in the years to come.

Machines are faster, cheaper and don’t complain; at least not yet. So from a cost cutting and efficiency perspective, there is no reason to stick with humans. This, in turn, will continue to fuel the wage deflation trend. Sal Guatieri an Economist at the Bank of Montreal in a report titled “Wage Against the Machine,” states that automation is responsible for weak wage growth.

“It’s unlikely that insecurities from the Great Recession are still weighing, given high levels of consumer confidence,” he wrote. “However, automation could be a longer-lasting influence on worker anxieties and wages. If so, wages could remain low for a while, restraining inflation and interest rates.”

Guatieri goes on to state that “The defining feature of a job at risk from automation is repetition”. This puts a lot of jobs at risk, many of which fall under the so-called highly skilled category today; for example, Accountants, Lawyers, Radiologists, X-Ray technician, etc.

North American business order record number of robots

In 2016, they order 35,000 robots, 10% more than in 2015. But that is nothing compared to China, which ordered 69,000 robots in 2016, South Korea ordered 38,000 and Japan for its small size ordered 35,000 robots. This proves that jobs are not going overseas but are being taken over by machines. Nothing will stop this trend; a trend in motion is unstoppable.

The largest user of robots is the automotive sector; in North America, over 20,000 of the 35,000 robots went to the automotive sector. Once upon a time, over 80% of the work done in this sector was done by humans, but robots perform today over 80%.

The total amount spent on robots in 2015 was $71 billion; experts project that this amount will surge to almost $135 billion by 2019. The trend continues to gain traction. Amazons purchase of whole foods and Lidl’s entry into the US market has triggered a grocery war, and automation is going to be one of the main ways to remain competitive in this industry. Amazon already has a massive robot workforce; they use over 45,000 robots. Sales of robots will triple from current levels by 2019

The number of robots sold in the US will jump by 300% over the next nine years, according to the ABI research. It’s simple math; more automation equates to fewer jobs. One industrial robot replaces about six jobs. For now, the automotive industry continues to lead the way, but as companies are pushed to become more competitive, we expect companies in every sector to embrace automation.

Source: Robotics Industries Association

Costs are plunging

In 2010 the average cost of a robot was $150,000; today the price has dropped to below $25,000, a drop of over 80%. As prices drop more companies will seek the efficiencies that come with using robots. A day is fast approaching where the price could drop below $5,000 suddenly making them affordable for almost any small sized business.

The death of Unions

Unions continue to push for higher minimum wages while the purchasing price of robots continues to decline; a deadly and probably fatal punch for the majority unions. In the era, where raising prices is not an option, the only leeway most businesses have is to cut costs. The human factor is the most expensive factor in any business, and that is where the focus will be going forward.

Robots are becoming more ubiquitous across a multitude of industries

Conclusion

The introduction of machines and tools created a significant demand for unskilled labor (it rose from 20% of the workforce to 39% from 1700 to 1850). Machines either pushed craftsmen out of the labor market completely, or encouraged employers to decrease their workers’ wages. The Economist cites this exact situation in which wages fell drastically in the early 1800s, not recovering until 1960.

GE’s recently introduced vision inspection system, as my colleague Chris Matthews, reported. In theory, machines can help workers become more productive, and productivity leads to higher wages — but that’s not the case. Machines like this one at GE actually reduce the need for workers — especially those who are typically paid between $20 and $40 per hour in this field. Full Story

As machines replace humans, the cost of producing goods will drop, and as more people will be competing for the remaining jobs, wages will trend downwards. Wages will rise in some specialised sectors, but these jobs will demand a specialised set of skills, for example, robotics. It appears that AI will only exacerbate the current situation in the years to come. Therefore, deflation and not inflation is what we might have to deal with for years to come.

Bearish vs Bullish outlook: The Trend favours higher Market prices

Posted on February 9, 2021 by Alan Solomon

Bearish vs Bullish; outlook for a stock market bull is much stronger

Flashback; Dow today looks like Dow yesteryear. The pattern the Dow is tracing is jarringly similar to that of 2011. If history is going to serve as a guidepost, then the Dow could be ready to roar as opposed to being down for the count. When the markets were plunging in 2011, the same question was posed. Is the Dow going to crash, is the bull over? Turns out that the so-called crash was nothing but a hiccup in what turned out to be one of the most massive Bull Runs of all time. Now we are faced with the same paradigm, and once again the talking heads (many who actually have the audacity to call themselves experts) are marching to the same drumbeat and chanting the same song of doom.

Central banks created an Alternate reality

We have repeatedly stated over the years that we are living in an era of lies and deceit, where the laws of reality have been suspended and master of deception (A.K.A central bankers) have helped create an alternate reality. In this reality, savers are punished and speculators are rewarded. Markets have been manipulated for an extraordinary period of time by artificially holding down interest rates for a record period of time.

As we live in an era of lies and deceit, where rampant manipulation is the order of the day; worse still, no one is contesting this manipulation. The masses have embraced that this is their destiny and surrendered to this new market norm.

Hot money rewards speculators punishes savers

This new norm rewards speculators and punishes savers. Under such circumstances, it makes no sense to focus on Bull vs bear market argument. Instead, focus on the Stock Market bull aspect only.

The laws of reality have been suspended (courtesy of the masters of deception, otherwise known as the friendly Fed), the markets will only crash if access to easy money is eliminated. This hot money is the main driving force behind these markets and will continue to be so in the foreseeable future. Against this backdrop of trickery and dishonesty, normal market rules cease to apply.

Sentiment not bullish; all strong corrections should be treated as buying opportunities

our contention has been that every major correction for the past several years is nothing but the market letting out a well-deserved dose of steam; a massive crash is not the makings; at least not yet. One day the markets will crash, but as this market is being propped up a by hot money, anything and everything will be done to prevent the markets from crashing. If there was any dose of freedom left in these markets, they would have crashed long ago. Therefore, once again, do not waste time on the Bull vs bear market theme; instead, pay attention to the trend. As the trend is bullish the markets are expected to trend much higher.

There is a stark difference between thinking you know what will happen and from knowing what is going to happen. Mass psychology clearly states that markets usually run into a brick wall when the Crowd is Euphoric and chanting “Kumbaya my love”. This is not the case yet and sentiment is far from the euphoric zone. This is one of the most hated bull markets in history.

Bearish vs Bullish; It’s 2011 all over again

The predictions that Dow was destined for destruction during the correction of 2011 might have appeared erudite in nature. Those predictions, now in retrospect, sound more like the ravings of a lunatic. Be wary when the masses are joyous and Joyous when they are not, that in essence is the most basic tenet of mass psychology.

Dow Index Pattern in 2011

In 2011, the from high to low the Dow shed roughly 16.2% or 2,070 points. Now, depending on your entry point the experience could have ranged from being mild to crash like in nature. If you purchased right at the top, then the word crash was probably flashing through your mind. Just because you think it’s a crash does not necessarily signify that your perceptions, that are being overwhelmed by fear are correct.

All media outlets were busy flooding the waves with stories that extremely pessimistic in nature. Misery loves company and stupidity demands it. Consumer confidence was not strong, the U.S. credit rating was downgraded, manufacturing was slowing down, and the list goes on. The 3rd quarter ended and the 4th quarter began and all those bogeyman stories well proved to be just that.

Markets climb a wall of worry

In 2011, the Dow ended the year on a positive note, defying all the predictions of disaster. Three months into the new year (20120, the Dow soared to a series of new highs. Like cockroaches, the naysayers vanished into the woodwork waiting for another day to sing the same old monotonous song, buoyant that time would make the masses forget the old proclamations and embrace the new ones; this falls dangerously close to the definition of insanity. Doing the same thing and expecting a different outcome. So far the outcome appears to be the same and if the pattern is repeated, then these chaps are going to get clobbered.

Outlook for the Dow 2017 and beyond

During the so-called market crash phase that started in August, the Dow from high to low shed approximately 16.3%. Strikingly close to the 16.2% that the Dow gave up during the 3rd quarter of 2011. So far, in the 4th quarter, all the major market indices are faring much better as was the case back in 2011. In the 4th quarter, the Dow has tacked on almost 5%.

Bearish vs Bullish; there is no case for a Bear market; take a look at this chart

The VIX, which is an index that measures fear blasted as it was being chased by the hounds of hell. ItX surged to a new five-year high, pointedly illustrating that the masses were hysterical. Panic is the secret code name for opportunity. Mass psychology clearly indicates that when the crowds panic, the astute investor should be ready to jump in.

The bullish case for the Dow index in 2017

A host of technical indicators is still trading in the extremely oversold ranges.
Our trend indicator is dangerously close to triggering a new buy signal. The fact that it did not move into the sell zone validated that the correction was nothing but a market letting out some well-deserved steam.
Inflation continues to come in at the low end

Bearish vs Bullish outlook; here is our game plan

Fear has to be avoided under any circumstance when it comes to investing. It is a detestable emotion that just sucks you dry. It takes and gives nothing back in return. When the crowd panics, one should resist the urge to become one with fear and the crowd. We are not in the jungle and fear is a useless emotion when it comes to making money in the markets. Get rid of it or it will get rid of you. Fear is a parasitic emotion; the only good parasite is a dead parasite. So shoot to kill when it comes to fear

To break even for the year, the Dow only needs to trade approximately 600 points higher. If examines the entire journey (up and down) the Dow traversed from August to Oct, the count comes in at roughly 5000 points. Examined from this angle, 600 points does not amount to that much; the Dow still has roughly three months to achieve this objective.

The Trend supports a bull market but ride up is expected to be volatile.

The V-indicator is trading well above the danger zone; 1100 points higher to be precise. This means that extreme volatility is going to be the order of the day. One should not expect the ride up to be smooth. We have a fair amount of resistance in the 17300-17400 ranges. The ideal set up would be for the Dow would trade in these ranges, with a possible overshoot to 17,600 and then proceed to test 16,500-16,600 ranges.

Bear in mind that the above targets should serve as rough guideposts. We never focus on trying to identify the exact bottom or top, a task we think is best left to fools with an inordinate appetite for pain. The game plan should be to view all strong pullback as buying opportunities. Line up the stocks you love, and then use strong pullbacks to open new positions in them.

Dow Dejavu? When one examines both the patterns (2011 and 2015); the answer appears to be “yes”

What will you do? Wait for this event to pass and then reminisce over what you should have or could have done, or will you muster the courage to act decisively.

Focus on the Trend and not the noise

Published courtesy of the Tactical Investor

Is The Most Hated Bull Market Ready to Crash?

Posted on February 8, 2021 by Alan Solomon

This Bull Market is universally disliked because it’s being artificially Propped

Throughout this bull-run, a plethora of reasons have been laid out to indicate why this bull should have ended years ago. Mind you most of those reasons are valid, but that is where the bucket stops. Being right does not equate to making money on Wall Street. In fact, the opposite usually applies. The Fed recreated all the rules by flooding the markets with money and creating and maintaining an environment that fosters speculation.

This is the most hated bull market in history is because logic states it should crash. In the 2008-2009 volume on the NYSE was in the 8-11 billion ranges and sometimes it surged to 12 billion. Before that, every year, the volume continued to rise, this indicates market participation. From early 2010 volume just vanished, it dropped to the 2-3 billion ranges and even lower on some days. Hence, all market technicians and students of the markets assumed that the markets would tank as markets cannot trend higher on low volume and that is where they erred.

No sellers around

The US government stepped in and started to support the market directly that is why volume dropped so dramatically. However as there were no sellers, the markets drifted upwards. Later on, they got the corporate world in on the scam. They set up the environment that propelled corporations to buy back their shares by borrowing money for next to nothing and then using this trick to inflate their EPS, without doing any work or even increasing the profitability of the company. Mass Psychology states that the masses are destined to lose; do not follow the crowd for they will always lead you

Article of Interest: Why most investors lose money in the stock market

Mass Psychology states that the masses are destined to lose; do not follow the crowd for they will always lead you astray.In between a few minor corrections were allowed to transpire almost all of which took place on ever lower volume, to create the illusion that there was some semblance of free market forces at play.

Dark Pools helping this Bull Market Trend Higher

We also have something known as Dark Pools, this, in essence, allows big companies to purchase large blocks of shares without the trade showing up on the NYSE or any other major exchanges. In essence, it gives the government an avenue to manipulate the markets without actually leaving a footprint. As the US can print as much money as it wants, this is a perfect backdrop to do whatever it wants. By the way, don’t believe the hogwash that our debt is only 18.9 trillion. There is no real mechanism in place to check how much money the US creates. Nobody is allowed to audit the Feds books.

Fed’s objective is to devalue the US dollar

The Fed is hell bent on forcing everyone to speculate, and that is why we have moved into the next stage of the currency war games and the era of negative interest rates. Negative rates will eventually force the most conservative of players to take their money out of the banks and speculate. This process will be akin to another massive stimulus and will provide the bedrock for another huge rally.

Make a list of stocks that you would like to own and use strong pullbacks to add to or open new positions in. Some examples are OA, AMZN, BABA, GOOG, CALM, CHL, etc.

Video illustrates why this Hated Bull Market is destined to trend higher

Published Courtesy of the Tactical Investor

Fiat Money The Root Of All Things Bad

The left and the right are being directed;

Fiat Money is behind everything

Take a look at these charts, and a pattern will start to emerge

Therefore we can make the following conclusions

A disaster needs to be manufactured in order to provide the masses with a solution

What are the average player’s options?

Random views on FIAT money

Boom and Bust Cycles Are Primarily Due To Fiat Money

World FIAT Currencies List

Billionaire Tim Draper: Only Criminals Will Use Fiat Money, As Cryptos Will Hit Mainstream in Next Few Years

Other Articles of Interest

Business Investment; the best time to buy is when the crowd is scared

Even Stan Druckenmiller doesn’t know where markets go next

Greenspan Says Politics Today Are Unlike Any He’s Seen

Janet Yellen is worried about the next financial crisis

What was the difference between the Feb 2018 correction and the current one?

Higher interest rates were never issue

Random views on Business Investing

The Stock Market: Risk vs. Uncertainty

How Do Investors Respond to Uncertainty?

Understand the difference between risk and uncertainty while investing

Other Articles of Interest

The monthly chart of the Dow going from 1985

So what is going on now?

Random Views on Long Term Trends in stock market 2019

Stock Market Tantrums Are Over, But For How Long?

Sven Henrich: My 2019 stock-market outlook

Stock Market Forecast For 2019: 7 Critical Trends To Watch

Other Articles of Interest

What is the difference between a Market correction and a back-breaking correction?

Advanced warning for market correction

THE STOCK MARKET CORRECTION IS PURPOSELY BEING MADE TO LOOK WORSE THAN IT IS

Let us look at some other factors

Conclusion

Other Articles of Interest

BOJ can’t exit stimulus when inflation below 1 pct – BOJ Gov candidate Ito

Amazon is invading finance without really trying

New York City’s Empty Storefronts And The $15 Minimum Wage

Other Articles of Interest

Agrihoods: The newest trend in millennial living

Here’s why millennials would rather save than invest

Will you have enough to retire?

Methodology

How we calculate your savings goal?

Wall Street Experts Good For Nothing but Hot Air

Masses are not embracing one of the Most Hated Bull Markets in History

The Technical Outlook

Inflation remains a non-issue on a worldwide basis

Conclusion

A simple game plan

Bearish vs Bullish; outlook for a stock market bull is much stronger

Central banks created an Alternate reality

Hot money rewards speculators punishes savers

Sentiment not bullish; all strong corrections should be treated as buying opportunities

Bearish vs Bullish; It’s 2011 all over again

Dow Index Pattern in 2011

Markets climb a wall of worry

Outlook for the Dow 2017 and beyond

Bearish vs Bullish; there is no case for a Bear market; take a look at this chart

Bearish vs Bullish outlook; here is our game plan

The Trend supports a bull market but ride up is expected to be volatile.

This Bull Market is universally disliked because it’s being artificially Propped

No sellers around

Dark Pools helping this Bull Market Trend Higher

Fed’s objective is to devalue the US dollar