Also, look at this chart carefully and understand what it is telling us. We are NOT suddenly seeing a massive decline in an otherwise healthy market. What we’re seeing is the most wealthy of the S&P 500 stocks suddenly dropping like everything else has been doing. As you can see with the blue line, the “equally weighted” stocks have been in considerable decline since about July (i.e. equally weighted meaning not taking into consideration size, health, or any other characteristic of the 500 stocks in the S&P 500). In other words, the overall market has already been in substantial decline. Only the “wealthy” stocks have propped up the market (the so-called “FANG” stocks: Facebook, Amazon, Netflix, and Google). Once those dropped, it LOOKED like the entire market dropped even worse than it did on Monday because those “big four” stocks also plunged, affecting a disproportionate share of the “value” of the market (the green line that is massive weighted by only a handful of stocks).
The full article is very instructive – just disregard the Casey sales pitches now that Doug Casey is no longer in control and Porter Stansberry is using his time-worn sales tactics – don’t bite!
Freedom, I was not arguing for “business as usual, all is well.” I think exactly the opposite. BUT I think we’re still being propped up artificially, and no longer have a strong feeling that a catastrophic, sustained stock market plunge is in the immediate future. I was shocked that we got through 2013 without a massive bottom-falling-out event, and even more so with 2015 also seeing the DOW and S&P stay way above the stratosphere. I began to realize in 2015 that there is far more manipulation going on than I thought possible. In theory, we “can’t” be sustaining this economy this long. But it appears we have. The man behind the curtain is still well in control of the strings. And unless there really is a plan to suspend the election in November and declare a state of emergency (in which case they could let a crash finally happen as the excuse for the takeover), I suspect that we will AT LEAST get through the November election and also through the inauguration of a Republican president next January – IF a Republican wins. Then s/he gets to sort out the unsortable disaster, not a Democrat administration.
That’s why I’m not terribly concerned about day-to-day plunges in the stock markets (including ours). Remember, it was only a short while back before the end of the year that the Chinese market was plunging massive amounts previously, and ours reacted “predictably,” only to recover almost immediately and get back over 18,000 for a while. Some here remember the massive one-day drop in October 1987 that too many said was going to be the end of the nation! Ooops – the market recovered to a level ABOVE what it had started the year at, only two months later (December 1987). Not counting the absurd buying frenzy during 1987, the market was better off on 31 December 1987 than it was on 1 January 1987, despite a terrifying (to some) plummet in October. It’s called a correction. Yes, we’re due for a correction, and we’re due for a whole lot more, because the underlying fundamentals are out of bounds of rational thinking and behavior on the parts of the “controllers.”
Oh – and if you want to watch something really interesting, look at gold since the week before Christmas. It has gained nearly $50 in only a few trading days, and well over $30 in just the past three trading days. Gold has historically been a leading indicator of things to come, but has become far more manipulated in recent years, and cannot be relied on very well at this point. Still, it’s apparently at LEAST reacting to the stock market activity. Personally, I think it’s all a bunch of head fakes. When “the big one” comes, I suspect it will be portrayed as the “result” of some catastrophic world event (probably political), not as a stand-alone economic collapse, which would then highlight the terrible job that’s been done ever since the Fed was created 102 years ago, among other notable unconstitutional things that have happened to this country. All part of the design Uncle Karl skillfully signaled in his final chapter (page) 167 years ago, and as updated by Cloward and his beautiful bride (Frances Fox Piven), back in 1966. Translation: don’t believe what you see, until it’s really, truly, “blood in the streets” (almost literally, if not so in fact).