🚨 SOMETHING VERY STRANGE IS HAPPENING
The S&P 500 keeps hitting new all-time highs.
But look at what is happening underneath it:
US stock market value: $81.6 TRILLION
US GDP: $32.6 TRILLION
The stock market is now worth roughly 2.5X the entire US economy.
Something doesn’t add up:
WHY IS THE STOCK MARKET GETTING RICHER WHILE THE ECONOMY UNDERNEATH IT IS GETTING WEAKER?
Here is what almost nobody is connecting.
The S&P 500 is market cap weighted.
The biggest companies control the biggest share of the index.
So every new dollar flowing into passive S&P 500 funds gets allocated heavily toward the same companies already dominating the market.
AND THE BIGGEST WINNERS KEEP ABSORBING THE BIGGEST SHARE OF NEW LIQUIDITY.
Meanwhile:
Credit card debt just hit a record $1.18 TRILLION.
Serious 90 day delinquencies jumped to 10.9%.
A 13 year high.
Subprime auto loan defaults crossed 7.8%, above the peaks of the 2008 Financial Crisis.
The personal savings rate collapsed to 3.4%.
US banks are sitting on more than $510 BILLION in unrealized paper losses.
Continuing unemployment claims keep climbing as full time jobs are steadily replaced by part time gig work.
And yet stocks keep printing records.
Now here is where the math gets insane:
The top 10 companies alone are worth nearly $30 TRILLION.
A 10% correction in those ten stocks wipes out roughly $3 TRILLION in market value.
That is equal to almost 9% of annual US GDP.
Without the other 490 companies doing anything.
Read that again.
The market does not need 500 stocks to crash.
IT ONLY NEEDS THE TEN STOCKS CARRYING THE ENTIRE INDEX TO REVERSE.
That is the real risk nobody is pricing in.
Remember, I’ve been trading markets for over 15 years.
When I EXIT the markets completely, I’ll say it here publicly, like I always do.
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He’s a professor of biology, who’s studied cancer for 30+ years.
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I’ve meet many people asking for life advice.
When we sit for a conversation on a deeper level, most of them want to “happy.” It could be my current scandals or a man in his 40s.
“Happy” is a state that cannot remain permanent. It’s setting yourself up for failure.
Instead, walk this path I’ve taken. Walk the path of growth, abundance and uncertainty. Growth as in always learning and self improvement. Abundance as in giving without the expectation for any returns. If someone screws me over, it’s fine. Move on. In life, you only need a few good brothers who have your back regardless.
And I’ll end with a famous quote done in one of my videos. “The happiest people in the world are those most comfortable with uncertainty.”
Hope this message helps you walk the better path.
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Don't overcomplicate Trading, my strategy is simple👇
Over VWAP/PMH + Bull Flags/Basing/Retests= Bullish
Under VWAP/PML + Bear flags/Retests = Bearish
Over VWAP + Pivot break Retest = Bullish
Under VWAP + Support break Retest= Bearish
Find a simple strategy that works for you + take A+ setups.
Focus on individual tickers with relative strength / weakness rather then indexes.