These elections will be one of the most polarised elections in the history of the US; when people let emotions do the talking, they are easy to manipulate. Market Update July 2, 2016
Our stance has not changed; have you noticed how everybody is getting in on the act. Even a supreme court Judge (Ginsburg) did the unthinkable and publicly made comments that are unbecoming of a Judge. She needs to take a look in the mirror next time she decides to make such colourful statements. Regardless of whether they are true or not, the game here is to polarise the masses. Hence, be ready for several laws to be passed that would normally be unpalatable but will be easily passed because everyone is frothing over the wrong issue. Monsanto has already scored a few nice victories; the latest of which is the “Monsanto protection act”. Expect more unscrupulous companies to make gains that will ensure that their profits surge at the expense of the average Joe. Hot money fosters terrible deeds, and we are in a world that is being flooded with hot money. We would not be surprised if the groundwork is already being laid to repeal Dodd-Frank. Regardless of who wins the presidency, the markets will continue to soar higher, though if the candidate is Trump, we could get a nice strong pullback, because of the uncertainty a Trump Presidency would create. I suppose from an investment perspective (if you are contrarian or someone that likes to use mass psychology) that a Trump win would be more favourable as it would provide you with a good chance to pick up some great names. Remember these elections are just a show, nothing is going to change because the real power brokers are 100’s of times stronger than any US president will ever be; things will only change if Fiat Money comes to an end.
The majority are still very anxious; the current reading illustrates that the Neutral and Bears still add up to over 65%; the current combined score is still well over 65%.
As you can see above Wall Street is still too anxious so the overall theme calls for higher prices over the next 12-18 months. However as per latest article Mass Media Turns bullish: Stock Market Correction likely, we expect the markets to let out some steam before trending higher. In the world of hot money and fraud, the only thing you need to understand is that the Fed will do whatever it takes to maintain the illusion that the economy is thriving, even though it’s not. Reality does not matter anymore; what matters is controlling the perception of the masses and in that aspect the Fed has done a marvellous job. The masses are quite and complain silently but like good slaves they continue to do as they are instructed; for now, resistance is futile, the markets will trend higher.
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