Market Musings
Investors smelling expectations of an
interest rate cut by the FED ignored economic data and pushed the
indices to new highs!
Do you smell the tulips yet?
The STI (Simple Timing Indicator) which is the number of "A"
rated stocks in the IBD database moved higher this week.
Company bankruptcies in June continued to increase. Mortgage
and credit card delinquencies are also increasing.
Employment is increasing in government jobs while private jobs
are going to non-US citizens.
The FED denies that a recession has started but a few former
FED insiders believe otherwise.
Do not forget that about 25% of the stock markets value is held
by only 5 stocks ... danger ahead?
Have we reached the Minsky moment? The dollar's reserve
status is slipping away taking the U.S. economy towards a slippery
slope.
And don't forget that the elections are just ahead!
Still if you believe the government's data, you could
think that the economy is doing better.
Looking under the
hood paints a much different picture according to Shadow
Government Statistics.
Dare I say that it will be
at least another year of dismal U.S. and world economic growth.
And that is if we don't enter a major military war with either
Russia or China.
Do not be surprised if the NASDAQ falls through 8,000, the SPX
to 2,500 and the
DJIA sees the 25,000 level.
Remember -- "Only purchasing power counts!"
By any reasonable measure, this market is
dangerous.
Be careful ....
To review the 07/12/2024 FlowChart, click
here.
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