Posted on 09/05/2021 3:06:43 AM PDT by EBH
Stock investors might need to look out below.
An esoteric financial markets indicator just registered a warning signal that historically augured in double-digit falls in the S&P 500, the index tracked by the SPDR S&P 500 (SPY) exchange-traded fund. The metric in question is the Marshallian K., which measures the liquidity in the economy. Recently, the liquidity started contracting...
“[T]he Marshallian K. now shows liquidity not only deteriorating but actually contracting,” states a recent report from financial company Leuthold Group.
That conclusion might surprise many people who look at the Federal Reserve’s money-printing program, which started during the financial crisis of 2007-2009. The Fed’s balance sheet has ballooned in the decade or so to more than $8.2 trillion recently from less than a trillion, according to government data. In other words, that would appear to be a lot of liquidity.
Marshallian K Could Kick the Market However, if you believe the Marshallian K., what matters is whether the money supply grows faster than the economy. And right now, that isn’t happening.
The opposite is happening. According to the recent research by Leuthold and others, the growth of the money supply is lower than GDP growth. That’s likely to put a squeeze on the financial markets if history repeats.
(Excerpt) Read more at forbes.com ...
Speaking of risk, you are headed to the panhandle at the peak of hurricane season.
Enjoy your vacay!
It is going to be a bumpy fall.
“...a warning signal that historically augured in double-digit falls in the S&P 500,...”
OMG,OMG A DOUBLE DIGIT FALL IN THE S&P!!!!!
BTW, a 10 point drop is a “double digit” drop and this average has had multiple “double digit drops” since the 1st of the year.
Markets go up and markets go down. It is a fact of life and unless you are invested for the long term then you have no business being in the market at all.
Forbes: Our staff has shorted everything so sell baby, sell!!!
All in the plan, build back better remember? They want to collapse the economy, bring in digital currency and be able to control your personal finances. You will eventually be told you make above the margin the remainder will be put in a pool for all to share.
“Forbes: Our staff has shorted everything so sell baby, sell!!!
LOL, you may be right. It is a fact that Market Mavins have correctly called 987 of the last 3 downturns.
As long as we have our ppt I’m not worried.
The Business MSM is just as corrupt as them regular MSM.
I agree. I have not ever made an investment decision based on what some “expert” in the media has said.
The rules for investing have not changed.
1. Never invest more than you can afford to lose.
2. Never invest money you will need in the next 5 years
3.Invest in a diversified and well balanced portfolio and look to re balance every 6 months or sooner if needed.
4. Re invest all dividends and distributions.
5. Try and avoid checking your portfolios value after every market correction or surge. Better to check quarterly.
Speaking of risk, you are headed to the panhandle at the peak of hurricane season.
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Possibly but he didn’t say which panhandle....
Alaskan Panhandle
Alabama Panhandle
Connecticut Panhandle
Florida Panhandle
Idaho Panhandle
Idaho Panhandle National Forests
Maryland Panhandle
Nebraska Panhandle
Oklahoma Panhandle
Panhandle (San Francisco), a park in San Francisco, California
Panhandle, Ohio
Panhandle, Texas
Texas Panhandle
Eastern Panhandle of West Virginia
Northern Panhandle of West Virginia
I had an Esoteric Market Indicator once.
Fortunately, I don’t take investment tips from you. All of your vacation destination options are wonky except for the FL Panhandle.
I expect a correction as well, but not because of “special K”.
Bkmk
Normalcy bias.
It works until it no longer works.
And—you get _no_ warning.
Exactly
I’ve been wondering about this for a while now- how it could possibly be avoided. Didn’t know there was a name for it.
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