Another week printing new high for the year by the major stock market indices definitely drives the bears crazy. But that’s the nature of an up trend – as long as the up trend is intact, the momentum build up can lead to explosive up moves catching many people by surprise. Next week is quarterly index future and option expiration, in addition to FOMC decision. I’m sure we will see more fireworks.
Patrick Boyle talking about the SEC actions against crypto firms. He explains very well what the cases are and the implications going forward. And I like his jabs against cryptos at the end.
One thing I like to point out that I see no one talking about, is the removal of the US debt ceiling and its impact. Of course, many would say it has a 2 year limit as if that matters. No mainstream media or independent guru came out talking about this. This is the most important change ever in US history as a financially responsible country.
The consequence of this drastic change means one and only one thing – hyperinflation is here to stay. The perks in the political circus are never removed in the future. Once the debt ceiling is removed, it is removed for good. So, instead of having a Fed put on the stock market, now we have US government printing infinitely at light speed. This will mess up the global financial markets in a big way and we will see the impact soon.
It is a very complicated subject and I hope that I can explain what the impacts are in the future.
This is why it is so funny to watch two completely opposite views on the market. Here is a bear’s view and this is a bull’s take.
And if you haven’t seen enough you can watch the latest update from Gundlach.
Got to run. Have a nice weekend all!
