MOST LIKELY SCENARIO FOR DJI!AFTER FINDING MANY UNFILLED GAPS MORE THAN 20k POINTS LOWER, I SEE A SEVERE BEAR MARKET FOR THE NEXT SEVERAL YEARS!
THE DOLLAR AND U.S. TREASURY DEBT WILL BE SOLD AND FOREIGN CAPITAL WILL EXIT U.S. EQUITIES, SENDING THE DJI BELOW 5000!
ONCE THE DOLLAR WEAKENS ENOUGH, THE U.S. STOCK MARKET WILL ENTER A NEW BULL MARKET!
MOST LIKELY THIS WILL BE FUELED BY A HYPERINFLATION OF THE U.S. DOLLAR!
Stagflation
MSM says theres no risk of inflation?1. Significant rally followed by decline
2. Downward trend resumes first week of April
3. Sideways ranging market (no clear trend)
#1 seems the most likely imo. Why?
Fundamental: pensions allocating from equities from bonds soon. Also millions will be infected with Rona in U.S.
Technical: bounce of 50 rsi and MA's
Unemployment will hit 8-9%. Say goodbye to consumer spending.
Corporate debt is looking awful.... Ford downgraded to below investment grade! FORD! 44% of corp debt is BBB. Won't take much for the house of cards to come down.
FED will continue QE4... but what happens if inflation rises dramatically?
Even when businesses re-open, prices will go up to cover for gov sponsored rona-related loans and recoup lossess.
Demand for foreign currency rises. Then perhaps a bank run due to the ABSURD 0%-reserve requirements.
SILVER TO CATCH A BID Prepare for Stagflation in Global Economies
See Chart for details on TVC:SILVER price forecast. Multiple bullish Technical patterns forming in silverprice. Falling wedge to push Silver into double bottom then to become extremely bullish.
Lots of fundemental support being established for Silver.. Expecting a monster rally in FOREXCOM:XAUUSD soon as another Insurance driven Financial crisis is peaking its head around the corner.
Wonder how many old folks have AIG life Insurance? So much more to worry about right now but just a thought.
Recomended articles regarding the unprecedented state of risk with regard to the current fed and monetary environments..
www.cbsnews.com
thehill.com
Gold and Silver Will Soar in 2020 READ BELOW Gold Officially broke out as you all know Silver will outperform Gold but they will both be moving up. As I said bull flag on long term charts.
No one else is saying this but interest rates will be 0% at the end of 2020
The FED will be buying even more bonds back at a faster pace than in 2019
Do not believe the 2% Inflation lies, Inflation by the 1980s method is actually 9% (shadowstats) and will be going up over the coming years
The FED (pretending we have no inflation) said that inflation will be moving up, well it will be
Generally they say not to let the inflation out of the bottle because it is hard to put back in
Paul Volcker (FED Chairman under Regan) crushed the previous inflation in the 80s when it got over 10% (which is similar to real inflation now) he had to raise interest rates to 20%, we have a much higher debt to GDP ratio than we did in the 80s
We have over 23 trillion in Federal debt not to mention all time record high debt in credit cards, mortgage, auto etc. imagine raising interest rates to 20% now, just to do a little math in we had to pay 20% on 23 trillion we would be running a 5.8 trillion dollar deficit (25% of GDP deficit) now we run roughly a 1.2 trillion dollar deficit
The data above is bullish for metals and miners and bearish for the dollar and Americans; based on current trends, eventually the dollar will not be the reserve currency anymore
WHEN INFLATION GETS OUT OF CONTROL THE FED WILL HAVE NO WAY TO FIGHT INFLATION WITHOUT COLLAPSING THE ECONOMY (WHICH IS NOW DEPENDANT ON CHEAP INTEREST RATES AND QE) MUCH FURTHER - THIS IS THE SECOND MOST BULLISH SCENARIO FOR GOLD, SILVER AND MINERS
HYPERINFLATION is not in the cards anytime soon but if the FED never reverses course anytime soon, it will eventually be inevitable - HYPERINFLATION is the most bullish scenario for Gold and Silver but I really hope the FED doesn't let it get that bad because so many people will be impoverished
Long term stock tip - stagflation - Nyrstar Long term stock tip - stagflation scenario:
- Scenario: fed raises rates (higher dollar) - but the donald needs a lower dollar for his policy.
2017 is thus the battle of the dollar and my entire 2017 strategy is based on it.
Who or what is Nyrstar?
- Belgian (european company) :
Nyrstar is a global multi-metals business, with a market leading position in zinc and lead, and growing positions in other base and precious metals, which are essential resources that are fuelling the rapid urbanisation and industrialisation of our changing world. Nyrstar has mining, smelting, and other operations located in Europe, the Americas and Australia and employs approximately 5,000 people. Nyrstar is incorporated in Belgium and has its corporate office in Switzerland. Nyrstar is listed on Euronext Brussels under the symbol NYR.
In case of staglation (which has started in november) the potential profit is huge for long term investors while money poors into the zinc market.