Wednesday, November 3, 2021

#USStocks Review

US Stocks Review
Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bag holders of trend transitions.

The global economy and stocks began behaving strangely in late summer of 2019. Repo rates spiked unexpectedly. Few acknowledged it. Anyone looking for a return to "normal" market by fundamentals will likely be disappointed in the coming years.

Stocks crashed in early 2020. Relative performance within the stock market suggests a reallocation of resources away from old to new economic plays. The old norm of "Made in USA" is not coming back. Manufacturing, design, and information collection will be borderless. Citizens will struggle to maintain their liberties and rights without oversight and intervention under this economic backdrop.

Rising stocks as the global and certain market groups decline is a real possibility that has been discussed for years. The stock market's distortion of reality is being attributed to the Federal Reserve. The Fed, contrary to popular opinion, is not that powerful. It cannot control the world's capital flows. The invisible hand, the true driver of market and trends, is redefining the world as the core economy passes from North American to Asia.

Subscriber Comments

It's amazing how much influence the Internet holds over people. Cries of hyperinflation is near remains a repeating theme. Hyperinflation will send interest rates skyrocketing, the stock market crashing, and people rationing for food, fuel, and independent thinking (apparently), so says the sales pitch. My latest US Economy and Stock Market Report $50 discusses topics the few people understand. I will likely Update the Report soon, showing why hyperinflation talk generates clicks, worry, but not profits. Hyperinflation is a possibility, but not for the US under the current global economic and financial system.  Change that, and we'll talk again.

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