Before the U.S. financial markets open tomorrow morning it is important to remember that all assets, especially stocks are on borrowed time with respect to value. Governments around the globe have spent the last two decades conducting monetary and fiscal policy in ways that increase asset prices. In a free market, asset prices are determined independently of government interference. Since the goal of every government in the world is to increase the wealth of the class which keeps it in power, all sorts of lawlessness and price manipulation has been ignored by regulatory authorities, as long as the result has been higher prices.
There is not one honest market in the world today. The U.S. capital markets have been destroyed. There is far more money looking for investments, than there is productive areas to place the money. Businesses in the United States cannot generate adequate profits necessary for the government to collect enough in taxes to operate and pay interest on debt.
The thinking of Americans is still backwards, in that central economic planning has brought us to this disastrous juncture and what do you suppose is being suggested as a solution? More central planning is being asked for by the public and more central planning is being offered by lawmakers and the president.
I cannot tell you exactly how the future is going to unfold, only that in terms of economics it will be very bleak. With so many thinking errors driving policy and everyday decision making, there are too many possible negative outcomes. My advice to everyone is to be forewarned and look out for yourself.
I cannot say when, but the bottom is going to drop from beneath the economy and the stock market. Should the stock market rally some this week, don’t be fooled. A portfolio of short sales is the only strategy that will possibly generate a positive return for the foreseeable future.
Remember, holding short positions is the opposite of owning assets.
I can’t stand it. I mean when college students can’t get jobs because their degrees have no market value. Watch this video. You’ll love it.