MARKETS: Expect EXTREME Distortions To Get MUCH WORSE From Here. This Is Why.
From Greg M
MMRI, Mannarino Market Risk Indicator. Free and available to everyone at https://traderschoice.net/about-traders-choice/
Back on 10-19-2023, the MMRI topped out at 329.2 it’s all time high with regard to market risk. (See circled area on the image below). On that day, the DJIA fell 250 points, with the other major averages also lower. On the run up to the MMRI peaking, the stock market/DJIA suffered a series of losses after topping out at 37,710.
From the time that the DJIA topped out at 37,710, with the MMRI hitting a high of 329.2, the DJIA lost 4,296 points- A loss of 11.39%
Again recently, as the MMRI crossed above 300/Red Zone/Extreme risk, the major stock market averages performed poorly/suffered losses.
Just this past week we heard from World Control, AKA, The Federal Reserve, who made it VERY clear to the market that rate cuts/more easy money is coming. With that, the MMRI has CRATERED, falling from a Red Zone/Extreme Risk high of 309.2 to an Amber Zone/High Risk 294.3.
I fully expected that the Fed. would start cutting rates as soon as this June however, the probability of a June cut has dropped
Why? Inflation according to their own numbers continues to surge, more so than every single projection from the Federal Reserve.
(Do you find it at all perplexing that the Fed. has gotten EVERY SINGLE ONE of their inflation projections wrong?) The FACT is this; the Fed. has been DELIBERATELY misleading, feeding false information to the public.
The current probability of a June rate cut is now at 30%
For July it rises to 45%, August 65%, and for September 85%.
With the upcoming Fed. rate cuts, YOU can expect MASSIVE AND CONTINUING price action distortions across the spectrum of asset classes to persist. (The mechanism of suppressed rates drives cash into risk assets/stocks inflating a bubble). The coming VAST expansion of debt should be enough to inflate the stock market far beyond its already a HYPER-bubble state.
You can also expect currency devaluation/loss of purchasing power to worsen.
GM
One again, I am not surprised by anything this economy does. We are in a free fall. The biggest buyer of treasury notes are selling them as quickly as they can. One for political reasons, and the other because they are smart. They see a monumental crash and a lack of a return so they are getting out while the getting is good. The one company, an ally has had a financial collapse years ago and I think they want to avoid it again. And, yes, the USA was heavily involved in its problems.
To save ourselves, buy metals. Most of us cannot buy expensive musical instruments, sports cars or antique vehicles. We cannot buy pieces of art. Anything of real value is out of our reach at this time. My suggestion, as Greg has said, is buy silver. By pre 1964 dimes. Yes, it is only 90% silver, but they are a tier 1 coin, truly backed by US fed. There aren't many left to buy but it is one of the best ways to have real wealth. Thanks to Greg, I have been buying silver.
Greg I used to work at an armored car company (the people who fill ATMs). These companies are not doing well and they have very high turnover rates. I got paid $21 per hour to do a risky job and that was in a relatively high cost of living area. 21 bucks isn’t worth it to sit at an ATM with $100,000 when anyone can just drive up and shoot you. I think if people aren’t able to withdraw cash it is because whichever armored car company they use is not doing well.