Stock Market Fears & Forever QE; the Program that never stops giving

Stock Market Fear

Stock Market Fears Culled With the Help of Forever QE

We are entering a new paradigm; get used to forever QE, though it will be given other names along the journey to make it appear more palatable. The US and by default worldwide debt is set to soar to preposterous levels; get used to it and embrace this fact for nothing has changed since we got off the Gold standard and nothing will change until the system collapses, though waiting for that day might prove to be fatal as the masses are completely asleep.

If a national debt of almost $22 trillion is shocking to some; imagine how they will feel when the debt soars to $100 trillion. Many might say no way in hell that is going to come to pass.  Take a look at the national debt numbers in the early 1900s. Go back to 1900 and then fast forward to the present.  Once upon a time, our national debt was less than 1 million USD.

Now if you told people back then it would be at $22 trillion one day; would the reaction not be the same? We will go on record to state that there is a good chance that worldwide debt will surge to $1000 trillion before the masses discover the emperor is naked, fat, bald and ugly; until then they will continue to believe he is a handsome prince.  It currently stands at $247 trillion

Clarida hints at the Forever QE reality

In a Feb. 22 speech, Clarida acknowledged no doubts. He said that radical monetary policy has worked, that it will continue to work, and that it may well become more radical. He contended that low-interest rates are here to stay and that new policy “tools” must be sharpened and kept at the ready. As to potential adverse consequences of administered rates and the mind-control games meant to “anchor” our collective expectations of the future, he mentioned none.

Certainly, rates are astoundingly low—Bank of America Merrill Lynch recently was able to count $11 trillion of bonds worldwide quoted at yields of less than zero. Clarida said that the decline in the so-called neutral rate of interest “is widely expected to persist for years.Full Story

Stories like this barely receive much media attention, and the masses are too busy dealing with the problems on reality TV or being misdirected by highly politicised B.S. News that only serves to allocate even more time to trivial matters.   These developments indicate that developed nations like the US and most of western Europe will become increasingly hostile places to live in. This topic is beyond the scope of this publication, but the trend is in place, the US is no longer the bastion of Freedom and will soon not make it even to the top 10 of the best places to live in. As a result of forever, QE Stock Market Fears should be viewed as a disease that needs to be cured. Instead of panicking jump in and back up the truck every time the stock market crashes.

In The Forever QE Era; strong corrections have to be embraced

In terms of the stock market, until the Fed changes its mind, all sharp corrections have to be viewed as buying opportunities, and backbreaking corrections have to be placed in the category of “once in a lifetime events”, provided of course the trend is positive.  That is what we are here for; to inform you if the trend is positive (Up) or negative (down).   The world is going to witness a Fed that has decided to make a cocktail of Coke, Heroin, Crack and Meth and take it all in one shot. Imagine what a junkie on this combination of potent drugs is capable of doing, and you will have an idea of where the Fed is heading in the years to come.

Now the Gold bugs will cry “I told you so”. Our response to this statement; not so fast little bugs. While precious metals will do well, we think stocks in key sectors (and we are not referring to Gold stocks) will pulverise the precious metals sector in terms of returns. One such area is robots (particularly Sex-bots) and AI.

Stock Market Fears Gameplan

The stronger the deviation the better the opportunity, the trend is your friend unless you try to fight for if you do it will turn into your nemesis.  We would like one person to point out one instance over the long when a permabar has been correct on the trend of the market. If you betted against the market in the run you would be blown out of the water decades ago, that is why there is not one successful permabear when one takes the long term perspective.   Case in point, the backbreaking so-called market crash of 1987 and the even scarier one of 2008.  The chart below clearly proves that being a long term bear is dangerous for one’s financial health

 

Stock Market Fears Update  May 2019

On the monthly charts above, our indicators are trading in the extremely oversold ranges and historically, when this occurs, the markets have rallied higher instead of breaking down. Hence any correction is generally expected to be a short-lived one.

Ideally, they shed some weight, our indicators pullback and the masses panic. If the markets don’t pull back sharply but negative sentiment soars and our indicators pullback a bit that would be more than enough for us.  Never tell the markets what to do; the idea is to be able to identify what represents opportunity and what does not?  While we would favour a firm correction, we are willing to adapt to whatever hand the market deals. As the trend is up, this means we have no choice but to view every reversal, whether it is sharp or shallow through a bullish lens.

Those that hold out for a meaningful correction

Might be sorely disappointed as on the monthly charts, the Dow is trading in the extremely oversold ranges, and this could limit the downside action. Individuals that use the term significant or sharp when referring to a correction who are not familiar with the concept of Mass Psychology, usually have floating targets. For example, before the correction starts, they might be satisfied if the Dow sheds 1500-2000 points, but after the masses are in full-blown panic mode, these guys will jump on the panic train and lower their targets.

History illustrates that they will keep lowering the targets until the markets suddenly reverse course, catching them off guard once again. The crowd never wins, and that’s one of the main lessons investors need to understand when it comes to investing. Market Update May 7, 2019. 

As far as the news is concerned it is on par with sewage and this old clip illustrates who the CIA admitted to having agents in the news media. If the CIA can do this what is there to stop other large corporations from doing the same.

Since 2003, we have not found one piece of financially related news from Mass media that could have been used to help any investor in the long run. In fact, mass media outlets seem to take delight in stampeding the masses at precisely the worst time and pushing them to them into the Euphoric camp when the smart thing to do was to bail out.

A simple winning strategy is to buy when the masses are stampeding and the trend is up and vice versa

Other Articles of Interest

Trending Now News Equates To Garbage; It’s All Talk & No Action  (April 24)

Americans Are Scared Of Investing And The Answer Might Surprise You  (March 9)

Stock Market Crash Stories Experts Push Equate to Nonsense  (March 4)

Popular Media Lies To You: Don’t Listen To Experts As They Know Nothing  (March 3)

Fiat Money; The main driver behind boom & Bust Cycles  (March 1)

Permabear; It Takes A Special Kind Of Stupid To Be One  (Feb 21)

US Debt To GDP Means Nothing To Bonds & Stocks  (Feb 12)

Technology-Driven Deflation Will Kill The Inflation Monster (Feb 7)

Business Investment & Stock Market Uncertainty   (Jan 31)

Dow 30 Stocks; what are they saying about the markets  (Jan 30)

Stock Market Bull 2019; Follow The Trend & Avoid The Noise   (Jan 29)

stock market fears and why most investors lose money in the markets