Sentiment is changing quickly and the evidence is now overwhelming. Sentiment is key to future trends and investor confidence is now waning. I have noticed this trend for a few months but the evidence continues to grow. Here are some tit bits to think about as you watch the emergence of a historic market crash evolve:
1. A billionaire, Michael Burry, has bet some $1.6 billion that our markets will crash soon. Michael bet similar for the 2008 financial crash. His bets are called PUTS and this means he is SHORT the markets. Warren Buffet is also selling assets and building up cash for the coming crash.
2. Mortgage interest rates are now the HIGHEST in 20 years. This event is slowing down the housing markets and crashing the commercial real estate markets. This is a leading indicator of my CRASH scenario. What happens in the real estate sector does create the trends for the general markets.
3. The pundits are now noticing that the NDX (Nasdaq - 100 index) is pointing to recession (based on passed history). We have had some 14 years of upward stock markets and this trend is now ending. This NDX index has increased some 38% for this past year. Has it now peaked? I think so!
4. Extreme selling prices are being asked for select homes. Diane Sawyer (for example) is selling her property in Martha's Vineyard for $24 million (a 500% increase from its purchase price in 1995). Another ranch property near me is selling for $29.95 million (another extreme price that suggests a peak in real estate prices). This happens (typically) prior to a major CRASH in housing.
5. China is now experiencing DEFLATION and this is ominous for the world economy. China has mostly had an inflating economy for nearly 20 years. This is now ending pointing to this coming huge market correction in the making. Will China try to re-inflate? Probably!
6. Some 69% of consumers (in our cities) are living from month to month with no real savings for this coming economic calamity. Homelessness is everywhere in all our major cities. It is sad to see the tent cities in cities like San Francisco, Philadelphia, Los Angeles, and New York city. Homelessness is now pointing to a huge WEALTH disparity between the rich and the poor in America.
7. Politicians are lying daily (think of Biden) as they espouse their FALSE beliefs about our economy and the trends. Biden is espousing that our economy is stable/sound/growing even as the above facts grow in certitude. Is his lies going to change sentiment? I don't think so!
8. Our FED (America's Central Bank) is ignoring the coming BRICS conference and their desire to dethrone the $ from its perch. This important conference is next week (August 22 - 24) and the bet is that a major announcement towards de-dollarization will develop and be promoted. A gold backed digital token may also be announced. All this means a $ crisis is looming for later this year.
9. A de-dollarization means both inflation and deflation for the American economy. Inflation will happen in some sectors (say energy) and huge deflation will happen in others (like our real estate markets and consumer durables). This will drive consumer sentiment DOWN quickly.
10. Finally, America's DEBT situation has skyrocketed since the debt ceiling agreement this year. The National Debt is now over $32 trillion (nearly $33) and our total debt is over $102 trillion. These numbers NEVER decline as America can not live on its real production. America has had a Trade Deficit for over 49 years and the National Debt grows daily (it never declines). When will America DEAL with this situation?
https://usdebtclock.org/
Conclusion: We are heading for the BIGGEST financial CRASH is all history. My sense is that this crash will start this year (2023). My prior date (for this start) was September and/or October. I hold firm to these dates as the evidence continues to build. Sentiment on economic issues can change quickly in today's digital world. I sense that this is happening as I write. Sentiment and confidence is waning.
It might be wise to buy some silver and gold coins now as these prices have been SUPPRESSED for years. Our central planners at the FED and our TREASURY have suppressed and manipulated these spot prices since 2011. This is done to FOOL investors on the soundness of our FAKE $. The prices are MUCH below what they should be given our DIRE financial situation.
Smart money is now buying silver coins and gold coins as the FINAL end to our monetary system is on the HORIZON. At the core of any money system is GOLD and SILVER. Our digital currencies are total FAKES and these imaginary units work UNTIL the market CRASHES. Look all around yourself (at this moment): where is a digital $? where is a digital Y? where is a digital R? Can you find it? Enjoy the mental effort and think about what happens when SENTIMENT changes for the masses!
Politicians can lie with a straight face and FOOL the masses! But its getting more difficult now that masses of consumers are starting to THINK independently!
Billionaires and corporate executives have dumped around $9 billion worth of stock this year (2023), taking advantage of the latest market rally to cash in their holdings.
According to a report from CNBC, the biggest seller was the Walton family, the heirs to Walmart and Sam's Club. The family sold off $4.39 billion in Walmart shares during the first half of 2023, shedding their holdings as the retail giant gained 9% in the first six months of the year.
Have a great day! I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com.
http://kingdomecon.wordpress.com
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