Site icon Tactical Investor

50 Trillion dollars sitting on sidelines will produce explosive market Rally

50 Trillion dollars sitting on sidelines will produce explosive Stock market Rally-so by while the crowd is nervous 

50 Trillion dollars sitting on sidelines

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.

Free Newsletter

Subscribe to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes.

Other articles of interest

Desperate Soros lashes out at Trump Win-funding Riots against Trump (Nov 14)

Trump remains true to word-refuses Presidential Salary  (Nov 12)

CNN ratings drop nobody wants to watch crap not news anymore (Nov 12)

Putin Issues International Arrest Warrant for Rothschild & Soros (Nov 11)

Telegraph journalist Monisha Rajesh Calls for Trumps Assassination & then Deletes her account  (Nov 11)

Trump’s win shows Mainstream media is done-Social Media will dominate (Nov 9)

Financial singularity and what it means for Stock Markets (Nov 8)

Top US Scientist Resigns-States Global Warming A Big Scam (Nov 8)

Stock Market Pattern Gives Trump 86 Percent Chance of Winning   (Nov 7)

Two Professors with Incredible Track Record Predict A Trump Win  (Nov 7)

American Education equivalent to Rubbish (Nov 1)

Internal FBI Uproar over Hillary Clinton’s email probe (Nov 1)

 

 

Exit mobile version