Not disagreeing with you, but am curious to know why you think the market could drop 20% - 30% this month.
Please advise.
Thanks.
There are so many places I could start.
I’ll give you a few things.
The Baltic Dry Goods index measures the prices of container costs for shipping around the world. In the last 12 months the costs of shipping have collapsed by 70% which means nobody is shipping anything. Translation the economies of the world are collapsing.
The market breadth has over 50% of stocks below the 50 period moving averages. This means the Feds are bulling just the key stocks of the indexes and the rest is rot.
The commodity prices in Australia are below pre 2008 levels.
The price of oil always always always goes up in a recovery. The intel is that oil is going to $20 per barrel. Construction is at a standstill.
Black Friday sales were down 10%. That is a big number.
The last time the Fed raised interest rates in a recession which we are in was in 1936. I’ll let you fill in the blanks as to what happened immediately after.
The real unemployment rate is in the low 20%.
Brazil is past a recession and in a solid depression.
And it is an impression of the markets I get. They are acting very very weird because they are full of rot.
I could list things that are even worse.