from Rogue Money:
Trump euphoria is still alive and well, but in one venue it is nearly dead and gone. That “euphoria” component has lost it’s value as a motivator to the equity indices. Nothing negative there, as it was inevitable, but I for one see the equity indices of the the DOW, the S&P, and the NASDAQ from this day forward preparing their future resting places as acronym footnotes in paper history books. Whether you are “long” or “short” these acronym “hot-shots,” whether your bets are right or wrong in their directions, I suspect you are about to see your closing ‘positions/values’ be meaningless. “No gains in sight.”
These nearly useless index metrics are about to become “inflation-impaired,” leaving you, and even “the house” with no profitable way out. Close out your paper positions and head for the exits, the economic forecast that settles in paper calls for “overcast skies and INFLATION!” How confident am I of this forecast? Let me look into my “Equity acronym fueled by debt only crystal ball,” damned SURE!
Last week I had the pleasure of watching a real American do his job. With professionalism on display. Why does it sound like I am leaning toward some amazement? Because he was a younger gent who was doing a repair on the Wolf’s corvette, and the conversation led to the “real world,” not the good time rock-n-rollin’ msm version of the world. I love it when I meet young folks who are starting to ’get-it,’ and are wanting to ‘get-it’ even more.
Though his visit is only one example, it ain’t the ‘lone-ranger.’ I am hearing that there are some other youthful real Americans who want things straightened out. Their ranks may still be small, but the Wolf’s sense of smell detects a growth spurt. Not enough yet to suit me. That being said, there was one troubling statement that we didn’t have the time to properly address.
Once he recognized I may have a background in finance he asked, “Where do you think the stock market is headed?” I told him I suspected it has a solid chance at knocking on the door of 30K. Unfortunately, I didn’t have time to elaborate, and mention that for all intents and purposes the equity market is through going upward in real purchasing power regardless of it’s closing values…! By most accounts that is a contradiction which requires some evidence and explanation. So be it. First up, looking back to last week’s installment…..
As mentioned in the last installment, even the hard working President is far too enamoured with the “DOW Jones Industrial Average.” In the meantime, he appears to be attempting things that history may qualify as truly heroic achievements, but unfortunately he can’t brag on them with any specificity and get any credit. Why? As detailed by London Paul in his ‘siriusreport.com’ podcasts, Trump can’t interfere with the ongoing proper legal procedures and risk, at the same time, letting his ego get caught up in taking credit for his role in the corralling of some very bad/ugly people. That sort of unneeded bravado could create a mistrial at just the wrong time and potentially eliminating some positive efforts.
Of course, I love the bad guys getting “Hammered,” but bargains in the equity markets need to be addressed once again, addressed so that it is put in proper context with our pocketbooks. In light of that, it is time to put the WG ‘reality-spin’ on the proper context to the political saying, “It’s the economy stupid.” In fact, I am going to present a new catch phrase for ‘roguemoney.net’ reader approval later in this installment for usage by the next political hotdog (or current one). WG
And on that subject, Steve St. Angelo of the ‘srsroccoreport.com’ recently wrote the following in one of his articles……
I can’t believe the Dow Jones has hit 21,000. Sure, some folks saw it coming, but it is by far the biggest bubble in Dow Jones history ever. Everything is leveraged well above our heads now. The entire U.S. Retirement and Pension Plan Market is about to hit a BRICK WALL. The Falling EROI – Energy Returned On Investment is gutting the entire system.
Because there isn’t a high enough EROI to sustain our technically advanced society, we are stealing energy where ever we can. Thus, the energy is being sucked from Pension Plans and soon, the U.S. Retirement Market and Social Programs. We just don’t have the profitable energy to run everything anymore. SsA
Well said by Mr. St. Angelo, and it is truly the end game struggles of a failing, out-going ponzi-scheme. But the money rushing home may take the stock market up even more. Because in a paper western designed financial system it has nowhere else to go. But I suspect from this point forward it will come with a huge price tag for your pocket books. More later with explanations and greater specificity…….
To put it into broader terms, I want to steal two small paragraphs from Mr. Clif high’s ALTA Report (the entire report is worth a read folks, and not over priced). Respectfully from Mr. High:
The central problem during this time will be one of attitude. Obviously, the more one has an attachment to the status quo, the more one will suffer mental anguish as the change proceeds. Those people with the awareness to harmonize with the changes have some potential to take considerable control of how the manifestation expresses in their life. Those who fight change become its victim.
Though it will feel that these changes have emerged suddenly, their origins are deep within the past. The forces propelling them have been at work for decades. Preventing these changes is practically impossible, and certainly not desirable. ALTA Report