The economic recovery from the 2008 recession is the worst recovery on record! We believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work. The “official” inflation numbers are way off reality. After a 30-year down cycle in interest rates, we believe that rapid inflation caused by huge government debt and money printing will start us on a new cycle of rising interest rates. That’s why we believe we have…
The Makings of a
Classic Bear Market
Trap in Stocks
Phase I of a long-term secular bear market started in October of 2007 and brought the Dow Jones Industrial Average down from 14,164 to 6,440 by March, 2009. Phase II of the bear market (often referred to as the “bounce” or “suckers rally”) started in March of 2009 and brought the Dow Jones Industrial Average back to the 12,000 level.
The purpose of a Phase II bear market is to give investors the impression the economy is improving and that the stock market is a safe place to invest again. Phase III of the bear market, the next phase, will bring stocks back down to the lows they reached in March of 2009.
If you think the stock market rally in stocks that started in March of 2009 is for real, think again!
We believe the economy and stock market have been propped up over the past four years by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply (old-fashioned money printing). But the bandages are falling off. The economic recovery is faltering. A slowdown in world economic growth is about to hit the U.S.
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