54 Comments

Very nicely written. Thank you for explaining everything so clearly. Never a boring day these days. Helps to feel firmly planted with a knowledge base of the drivers of the market. 😄

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But can you honestly rule out a 40% or more correction in this current interest rate rising environment - say something similar to fall 2018 when we had far less debt than now and the economy then couldn't handle a 10Y at 3.2%? The debt market could remain stable and we could see a massive sell off. Then the big debt market implosion could come later.

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author

Rule out? Nope.. I would buy- its that simple.

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The Fed just hasn't hopped on the back pedal adjusted bike. Give them time, they will.

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I think stock market may be already 80% off by the time we react to the debt market blowing up.

There are super computers watching just that. And they have access to full order log and they read it faster than human.

Besides big banks and their buddies will already know the time to the second when the they decide to blow up the debt market and the will front run it ... Imo of course

Does anyone else think that ? What am I missing? Where am I wrong ? Will we have a nice bell ringing and then a couple of days to sell the stocks ?

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May 9, 2022·edited May 9, 2022

To deny that an 80% stock market drop will not occur, "it's not the big one", based on the premise that some other event in the debt market needs to occur first is a fools errand.

Just like death by 1000 paper cuts, 80% down in 0.5% increments can occur.

Don't fight the Fed applies to both bull and bear markets.

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You have been right all along Greg. I like listening to you because (emotionally lol) you tell it like it is. I have a system that tells me when we might be in a bear market. It signals simply by following very basic rules. For the longest time the overall markets in the S&P and NQ have remained bullish. Even with the pull backs. Recently a Sell signal was tripped. That does not mean a crash it simply means to sell any significant rallies. My present sell level (optimal) is way up at 15100. The incredible divergence that happened last year would clearly state that the market could fall to 9700 on the NQ and it would still be an unbelievable buy. I hope it does for the long run. If you are collecting dividends as Greg does what does it matter. Ten years from now the market will probably be at 20000 but for the time being I am simply biding my time.

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A post that we all need to pay close attention to. Thank you mister wizzard!

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Why would you tell followers to buy qqq at 390 380 370 360 it’s at 306 duh now just explain it’s me GM we know it’s you

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author

I did say to nibble at the Q's.. Yes. Lets see how this plays out. It is pretty rare for every position held in a portfolio to all perform well in the shorter term.

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Hopeful hopeful hopeful

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Hope is not a strategy, but I get what you mean.

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Are you expecting the big sell-off (80%!) as part of this current phase or after the market closes higher by the end of the year?

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May 7, 2022·edited May 7, 2022

The stock market is long overdue for a correction but the Federal Reserve Bank will keep printing money out of thin air to drive up inflation and than will buy it all with counterfeit fiat currency when people lose everything they own to the banks that won't be able to afford the higher interests rates on their ponzi scheme loans from the Gangster Banksters.

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Thank you so much for this article muchly appreciated!!! God bless

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I agree. Thanks so much for writing that piece for us.

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Thank you Greg. I learn from you every day. Thank you very much.

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Thank you Greg for your insight, always welcome.

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In depth foresight. thank you, I watch the MMRI

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I'm still not getting how you categorize the 10 yr yield as stable, when it has nearly doubled in the past few months.

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So at what rate in the 10 yr would make you really start to be concerned about a huge market drop?

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Well said. Nicely spelled out. We will continue to keep the sharpest eye on the 10 yr yield. As always, you are the man Greg.

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