50 Trillion dollars sitting on sidelines will produce explosive Stock market Rally-so by while the crowd is nervous
It is estimated that up to $50 trillion is sitting on the sidelines because this bull market has not only taken the Masses in the US by surprise; the crowd on a worldwide basis has an unfavourable view of the markets.
Black Rock puts the figure at more than $50 trillion, a figure that includes a host of different metrics, from central-bank assets to financial-firm reserves and consumer savings accounts. Other measures show a similar trend. Private-equity firms are amassing great piles of liquid securities, with Blackstone saying that nearly one-third of its assets are in cash. Fund managers, in general, have boosted reserves as a share of their portfolios to levels that match the highest since 2001. Full Story
This confirms what our psychological and sentiment indicators have been stating all along; the crowd is skittish even though the market is trading close to its highs.
This is an unprecedented development, and it means that this bull market is going to soar to heights that only a man under the influence of some strong medicine could envision today. Slowly the term inflate to infinity will find its way into the mainstream media; this is the Fed’s secret new slogan. This will not only destroy the US dollar, but the goal is to destroy other currencies. However, relatively speaking the Dollar will still appear to look healthy as the one that sinks at the slowest pace seems to be stronger. When you compare crap to crap, the image is easily manipulated.
This chart shows that private equity firms are steadily building up their cash reserves; they have been waiting for the so-called fair valued market. A concept that makes absolutely no sense today; trying to assign a fair value on this market is the Joke of the century. Every trick has been used in the book to manipulate EPS and when you alter earnings every another key piece of data is becomes meaningless. The only thing to pay attention to in this period is mass sentiment and a few technical indicators.
Too many people are waiting for the so-called optimal entry point. Hence, the likely outcome is that they will be forced to chase this market as there is an excellent chance that this will not come to pass. These people are not looking for 1000-2000 point pullback; they are expecting more.
Secondly, the vast amount of cash sitting on the sidelines is going to serve as a floor; additionally, it provides clear evidence that the masses are nervous and skittish; thus the path of least resistance is up.
If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who strive to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.
Mass psychology is a very powerful tool, and if employed correctly can help you spot the abnormal levels of manipulation, the masses are subjected to. It would be a good idea to familiarise yourself with the concept of “ Plato’s allegory of the cave.”
We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being. Visit the investing for dummies section of our website; it contains a plethora of free resources and covers the most important aspects of mass psychology.
Secondly, subscribe to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you do not alter your perspective and change your mindset. If you cling to the mass mentality, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.
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