If the S&P 500 finishes the year with a 10%+ gain, it will be only the 2nd time in the history of the $SPX that it has had 4 straight years of double-digit returns. The other time was 1995-1999, just before the Dot Com Bubble burst 🤯 👀
This is what caused inflation:
During the pandemic, the Federal Reserve printed $5 trillion of new money.
After the pandemic, they only reduced their balance sheet by half that amount because they were worried about stocks imploding. So to compensate, they raised interest rates DOUBLE where they were pre-pandemic. From 2.5% pre to 5% post.
They CHOSE to implode the middle class over the wealthy. That's capitalism baby. Centrally controlled capitalism.
The rest will be history.
https://t.co/kZHoPd9ZMx
JUST IN 🚨: Stock Market reaches most expensive valuation in history after the Warren Buffett Indicator hits 227%, surpassing the Dot Com Bubble and the Global Financial Crisis 🤯👀
The reason why investors don't see this coming is because America's wealthy are totally oblivious to the implosion of the working class.
That will change in the days to come. In what I call "The Days of Rage".
The chart of the week is this one below showing AI stocks just went late stage parabolic, with their biggest seven day gain in history. Meanwhile U.S. consumer sentiment reached a new all time low.
In the SAME week. They are now inversely correlated.
Buckle up.
For the Global Dow which includes U.S. stocks, this is the longest monthly winning streak since the start of the Iraq War in 2003 - The Global Dow has been up every month since the trade war low last April.
The only difference is that the 2003 winning streak came off of the lows of a three year Tech bear market.
This winning streak is coming at the highs of a three year AI bubble.
Which leaves the impossible question for this brain dead Idiocracy - Is this the top, or is this the bottom?
This was the largest weekly key reversal since July of 2024 and before that the market top in December 2021.
Each of those times, the market was down four weeks in a row. And of course December 2021 was the start of bear market.
This is what AI is going to do to the job market in the next recession.
And when there are no jobs, then Consumption and GDP will implode.
And then we will achieve Terminal Idiocracy.
https://t.co/vJDaW8Diqe