Printing vast amounts of money doesn't always mean it's "initially" stock market positive. It just means that sometime in the future, it will be stock market positive. If you look at the decline in the Ten Year Yield from the end of 2018 to the beginning of 2020, this was actually warning the market that something was about to happen, in order for the FED to print vast amounts of debt. If you bought near the top before the pandemic crash, you needed to hold through that time period where it went into freefall and kept it for over a year to see real returns, and most people didn't have the tolerance to do so.
Let's remember that in late 2019, early 2020, there wasn't hype to "buy now, buy now, buy now"...it was FOMO because people couldn't believe it was melting up, and weren't looking at the key drivers, before the capitulation of the pandemic. What is it now?! "buy now, buy now, buy now"...and for this reason, it will make this upcoming crash much worse than anyone could imagine.
I think the FED has the capability to save the market, especially with yields as high as they are now, but look at what the 10YY did prior to the pandemic...it fell to under 1%, along with interest rates. Right now with the 10YY still above 4% and no rate cuts yet it isn't predicting any easy money (like 2020) to surge into the market...and the FED can't drop yields substantially without a rate cut, leading also to the fact that a rate cut with yield curves inverted will create a hard landing. This rhetoric of easy money is coming to a halt until the FED reacts and shows us sustainable proof that it has the markets back.
The ONLY way the market can sustain any sort of bullish stance, is if the FED keeps pausing rates indefinitely, and keeps bond yields suppressed. But it will eventually reach a climax where the market can't determine any direction, and then fear starts pouring in.
The Music Has Stopped. The Market Has To Listen For The Sound Of Silence, Before It Starts Playing Again.
"I'm here for one reason and one reason alone. I'm here to guess what the music might do a week, a month, a year from now. That's it. Nothing more. And standing here tonight, I'm afraid that I don't hear - a - thing. Just... silence." - Margin Call
What illusion are you talking about ? Gold is the most pathetic investment in human history. Period. Please ponder what I showed above using a periodic rate calculator.
$20 invested in solid companies in 1913 would be worth millions today. Gold is still pathetic $2000 today and it keeps falling at every step.
NOW Watch BooBoo jump up with his pet 1970 example to tell you why the gold is holy grail lol
BTW: I don't talk about silver. It's so pathetic that it's not worth mentioning.
Printing vast amounts of money doesn't always mean it's "initially" stock market positive. It just means that sometime in the future, it will be stock market positive. If you look at the decline in the Ten Year Yield from the end of 2018 to the beginning of 2020, this was actually warning the market that something was about to happen, in order for the FED to print vast amounts of debt. If you bought near the top before the pandemic crash, you needed to hold through that time period where it went into freefall and kept it for over a year to see real returns, and most people didn't have the tolerance to do so.
Let's remember that in late 2019, early 2020, there wasn't hype to "buy now, buy now, buy now"...it was FOMO because people couldn't believe it was melting up, and weren't looking at the key drivers, before the capitulation of the pandemic. What is it now?! "buy now, buy now, buy now"...and for this reason, it will make this upcoming crash much worse than anyone could imagine.
I think the FED has the capability to save the market, especially with yields as high as they are now, but look at what the 10YY did prior to the pandemic...it fell to under 1%, along with interest rates. Right now with the 10YY still above 4% and no rate cuts yet it isn't predicting any easy money (like 2020) to surge into the market...and the FED can't drop yields substantially without a rate cut, leading also to the fact that a rate cut with yield curves inverted will create a hard landing. This rhetoric of easy money is coming to a halt until the FED reacts and shows us sustainable proof that it has the markets back.
The ONLY way the market can sustain any sort of bullish stance, is if the FED keeps pausing rates indefinitely, and keeps bond yields suppressed. But it will eventually reach a climax where the market can't determine any direction, and then fear starts pouring in.
The Music Has Stopped. The Market Has To Listen For The Sound Of Silence, Before It Starts Playing Again.
"I'm here for one reason and one reason alone. I'm here to guess what the music might do a week, a month, a year from now. That's it. Nothing more. And standing here tonight, I'm afraid that I don't hear - a - thing. Just... silence." - Margin Call
Having to hold for one year after a crash to break even is nothing all things considered lol
maybe not during the pandemic, but with real inflation, much higher than what they are telling us, retail traders will get wrecked.
That’s why I (and Greg) own high yield ETFs so we don’t even have to worry about selling since we’re making 10% dividend
> what the music might do a week, a month, a year from now.
It will keep playing forever in USA
There is no illusion. FED was created in 2013 when gold was 20.5/oz Today 2000
$20 invested in a reasonably safe bond portfolio paying 8% would be 95000 today
https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator-periodic.php
What illusion are you talking about ? Gold is the most pathetic investment in human history. Period. Please ponder what I showed above using a periodic rate calculator.
$20 invested in solid companies in 1913 would be worth millions today. Gold is still pathetic $2000 today and it keeps falling at every step.
NOW Watch BooBoo jump up with his pet 1970 example to tell you why the gold is holy grail lol
BTW: I don't talk about silver. It's so pathetic that it's not worth mentioning.
Sure thing there Waverider = Loser = fact....LOL
Nope, not gonna happen this time.
Zillow and now Redfin have removed (inflated) price history recently.
Printing more humans to prop up the market..
Blessings to you and your family Greg.
The Markets the Fed and all of the Politicians are Fake a just like Bitcoin, all Fake.
Look out Below......
U Mean they haven't been Printing MASSIVE Money amounts!!!!!! LOL
Greg what do you think about XYLD? It’s a covered call ETF like JEPI except it has an even higher yield at over 11%