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Es werden Posts vom Dezember, 2018 angezeigt.

Situation on the streets of US as in 1929

In US wages were not rising since the last crises in 2007 while inflation was still there. So prices are higher now and the buying power is not there. The new trade wars increased prices of imported products from china. I assume that 90% of the american people have to spend all of their money to survive. In such a situation with no reserves in resources a recession is very likely and there might be not only blood on wallstreet but blood on the real streets of the US as well (meaning civil unrest). To me it seems to be that this huge bubble on wall street has become just a financial video game. Similar to the uprising of the stock prices because of enthusiasm the last decade there can be panic and the downfall as well. I warned for years that the shiller P/E ratio shows exactly this separation of wall street prices from reality. See:  https://www.youtube.com/watch?v=2akxVzZLBUw

Central Banks hold Gold because they know there is a serious risk of hyper inflation

The central banks know that there is a risk that paper money is becoming worthless because there was simply too much money printed as cheap credit the last decade. I think it makes sense to hold some real gold just in case we get really doomed. Whoever has the gold has the power to set the rules. Bitcoin has become a kind of an alternative to gold - I would call it a digital gold. Bitcoin could become tremendously valuable. There was never a recession so far with a digital currency like Bitcoin. We will see how a digital currency like bitcoin works in a hyper inflationary environment and a recession. See:  https://www.youtube.com/watch?v=R5AC0Wjrvms&t=2001s

Recession and Housing Markets

In recessions housing prices often fall so homes become more affordable. However we all know what happened in 2008 / 2009 when homes became too cheap. They do not cover the credit risk any more. In addition the recession in the US could mean a weaker USD especially if there is even more quantitative easing. This means basically that the ordinary people in the US have something similar to a cut in their salary. I think there is a serious risk that we have another housing crises similar to 2008 / 2009 in addition to eventually a credit loan obligation (CLO) crisis. It is not wise to buy a house in the US in the current situation. Housing prices may fall so I think you should currently wait for buying a new home.

Never ignore an Inverted Yield Curve

On 5th of December 2018 we had an inverted yield curve. This is generally a sign for a stagnation of the economy. As long as the FED does not react we have signs for a new recession and no reason to believe in any programs of president Trump to fight a stock market crash in my opinion. See: https://www.bloomberg.com/opinion/articles/2018-12-05/inverted-yield-curve-will-fed-act-to-avoid-recession https://www.thebalance.com/inverted-yield-curve-3305856 https://seekingalpha.com/article/4227014-inverted-yield-curve-complete-picture

Plunge Protection Team & The FED

You might want to watch the following video: https://www.youtube.com/watch?v=BmlXvOd1kQY The whole world knows now that this American stock market crash will become a mess. What will the Plunge Protection Team do? What will the FED do? Even more artificial intervention on the stock market as it happend to add a floor back in 2008/2009? Another monster that will be even worse than the monster created the last decate? I agree with the video author that this is a great opportunity (very rare). I think that the plunge protection team will fail. However if the FED does an emergency rate cut of interest rates I might get out of 20x leveraging S & P and Russel 2000 short selling. The loan bubble is simply too big. (See:  https://www.youtube.com/watch?v=EHieYyi-vxY ). I am telling this for over a year that my graham copy fund strategy includes to play on this CLO crisis (credit loan obligations) with short selling (see:  https://grahamcopyfund.com/ ). The FED is stuck because t

Same pattern as in 1987 -> Price Target of 1300$ in SPX 500

I can recognize the same pattern in the S & P 500 as in 1987. In addition we have a huge bubble when we look at the shiller P/E ratios. I have a price target of 1300$ in the S & P 500 and bet with 20x leverage against the S & P 500 index. I expect this decision to be my biggest bet with the highest impact on my performance so far. In addition I sold all my stocks in Philip Morris. I will only keep my small investment into KHC as this stock is really cheap and you can get it below book value currently (P/B: 0.79). See:  https://www.youtube.com/watch?v=jM5o4CGMFqI&t=185s See:  https://www.youtube.com/watch?v=b82XJvL2P6M&t=1217s Time will tell if I am right with this decision.

The Ashes of the Phönix

30 years ago the Phönix on the front cover of the Economist of 1988 showed that the Phönix will rise from the ashes of an old pyramid structure, the money structure that burns in fire. On the coin on the breast of the Phönix the year 2018 is drawn. Now we are at the end of 2018 and raising cash as described in my strategy for 2018 was the best you could do. The stock market lost more than its earnings in 2018 and I think we see the first signs of the coming ashes of the Phönix. Accordingly the Economist of 2019 cover was completely black because darkness might follow this 30 years prophecy for the Phönix. The new NWO money system with the RFID chip is in place and some people already have their implanted chips in their right hand. That means basically the prophecy to have this new world order money system in place by 2018 is fullfilled. However this new money system is not rolled out to the masses yet. The Economist cover for 2019 was changed recently. It shows what's coming ne