The worst Depression in United States history is on the way -- and not far off -- it's only a matter of months at most. But the market continues to go up, almost exclusively propelled by retail investors...
high net worth individuals, institutions and hedge funds are long out of this market. What we have now folks is a rising ponzi stock market rising only due to the inexperienced and naïve with Robinhood accounts. God help them if their trades and accounts freeze when the shit hits the fan and they're suddenly desperate to get out. You know, in times when buying that new judge authorized issue of a given stock happens right after the company went into bankruptcy protection and speculators holding the old stock were wiped out. No bankruptcy judge has ever done anything close to that before. That judge must be a disciple of The Fed. Poor him, and more importantly, poor us!
Some of you think I'm full of shit, as usual? Well, maybe not. Reality tells you that the investment and money center banks are already insolvent, in business only because of The Fed counterfeit money printing press. Did they learn their lesson since 2008? Please. They once again ruined the financial system with garbage derivatives and other leveraged products. They used cash injections for share buy-backs to artificially prop up their stock price even as earnings and profits dropped. America's top banks are a house of cards and a strong wind is coming.
Last September's Repo Crisis was the first attempt to stave off a large bank-wide collapse and it worked by delaying the inevitable. Then, The Fed started buying treasuries and mortgage-backed securities. That also worked but wasn't enough to break the declining economic cycle so The Fed moved to purchasing Bond ETFs and guess what, an economic turnaround did not happen. So...……...now The Fed is buying high yield bonds (translation: junk bonds) to keep already bankrupt zombie companies afloat. And that doofus move isn't and won't do the trick either.
Like the old saying goes in data: garbage in, garbage out. That tells you all you need to know to confirm that the Depression is right on our door step. The Fed is the only one buying treasuries from the banks, China and Japan have taken a pass and now we're waiting for the other shoe to drop when they likely massively dump treasuries.
Add to that U.S. dollar weakness and an eventual loss of its status as the Petrodollar and economic ruin is ahead. Sure, the American buck will remain as the reserve currency for worldwide economic exchange but many alternatives are already being examined as an alternative.
Unemployment is now likely at 20%, they claim it's only 13% while the official figure for the number of unemployed is 46 million, with everyone already knowing that it's much higher than that. Retail sales in April were down 17% and meat-price inflation increases are up only 40%.
That means the worse is yet to come so brace yourselves and get out of stocks accordingly. If you have profits, take 'em now and if you have any knowledge or expertise in gold or silver stocks, then take a long, hard look at them pronto. Stock markets are probably the biggest bubble in American history. And because a bubble is always a bubble, gold and silver stocks will without a doubt end up doing exactly the same with people losing their shirts.
Precious metal stocks means doing a lot of homework for your likely profits but know when the end is near and that will no doubt come right after base metal stocks are on their way to the moon. That, without a doubt will be the end. Then it'll be time to get back into large cap and dividend growth and momentum stocks. Meanwhile, value stocks will be worth looking at right after the upcoming crash and within months of it. But with value stocks, mispriced assets not properly related to solid fundamentals, or recognized by markets, is always king. Free cash flow, dividends and most importantly, profits will be the rule of the day. In closing, the best of luck to all in these markets.
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