The chartists I follow expect 10% loss here through August, a potential rally thereafter.
My conclusion is the same as last week. We have severe headwinds for continuing free money. The Republicans will tank raising the debt ceiling, and fight against extending free money. If all free money ends, I do not believe full employment is possible back to circa January 2020 simply due to all the failed businesses.
Therefore the real economy is worse off than the stock market valuation shows.
The market last week hit the most extreme distortions on many fronts never seen in the history of the US stock market. If those indicators predict future returns accurately, we will see negative returns in the market in the decade ahead.
I don't think it will pan out that way, simply because the central banks and US government will step in. But to step in, we need hard times to justify new powers of meddling in the tatters of capitalism. Buckle up. I hope bitcoin hits close to 15K, as I will re-load the boat. Gold is not good until we get the next leg up in free money at earliest.
Bonds, cash is king. If your selling your house, get er done!
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