I'm working on a sole reason for a market devastation event to commence mid January. Not one of downward, rather, stunning upward movement. I am calling for a 15-25pct move in stocks in Q1. And it could very well continue for the remainder of 2020. Maybe a 50-100pct unprecedented advance in valuations of leading names.

It's never really happened before (or tested) - the majority of the world pricing rates below zero, institutions needing yield to fund liabilities, and such allocators needing yield however they can get it. So an unfathomed rotation into stocks is going to commence. With cheap leverage.

Combined with buy backs, continued mergers, there is an overall shortage of stock supply. And indefinite demand. On pure supply / demand fundamentals regardless of economy stocks go straight up.

At least until Musk and the other space chasing clowns find that shorts do in fact exist on the other side of the Moon or Mars….





Speak your mind

2 Comments so far

  1. Russell on November 8, 2019 5:25 pm

    With all this constant quantitative easing , creating constant credit by all the major world banks, and an acceptance that this is now the norm , bit like an addiction. , I wonder if one day the world will find there money is worthless as its every where , just a thought

  2. Joe on November 28, 2019 10:05 am

    It happens. Venezuela comes to mind, Russia too.


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