Tuesday, April 28, 2020

Stock Market May Get Biggest Rally EVER!

In one short day the government of America shut down our two most important gods. First they shut down our god of money by crashing the stock market and telling 100,000,000 people to quit making any.  Next they shut down all the gods of sports.  No pro sports, no college sports, no high school sports.  Empty stadiums sitting all across the country.

But the god of Mammon be very well be resurrected when the virus passes!  Check out this headline.

The U.S. stock market may enjoy the biggest rally ever when the pandemic is over

The stock market, before Wednesday, rallied strongly as the coronavirus curve flattened. Imagine, now, the magnitude of the rally if the coronavirus were vanquished. 
President Donald Trump has said that, due to pent-up demand, the economy will eventually “pop back like nobody’s ever seen before.”
Regardless of your political views, it’s worth reviewing that scenario. 
At The Arora Report we conduct scenario analysis. That is a reason we were able to, on Jan. 22, identify a potential drop in the stock market due to the coronavirus.
And now, in our analysis, there is a reasonable probability that the U.S. stock market may see the biggest rally ever post-coronavirus. 
Many investors are asking if they should they jump all-in. The answer is “no” because the current rally is about 65% due to a short-squeeze. For details, please see “Wall Street wants you to believe everything is peachy.” 

There are seven reasons for a potential rally in the U.S. stock market:
1. Stocks compete with bonds. The Federal Reserve is likely to keep interest rates low for a long time. As of this writing, the 10-year Treasury yield is 0.647%. This is equivalent to a price-to-earnings (P/E) ratio of 155 — many multiples of the S&P 500 stock index. As a result, the stock market will see a significant multiple expansion.
2. History tells us that when the Fed increases its balance sheet, a big part of the money that it prints ends up going into the stock market. Our analysis is that by the time this is all said and done, the Fed’s balance sheet will be $6 trillion-$8 trillion. That is an unprecedented amount.
3. The U.S. economy is about 70% consumer-based. Consumers will produce never-before-seen pent-up demand for traveling, eating at restaurants, going shopping, going to the movies, etc.

4. A mother-of-all short-squeezes will take place as bearish investors get burned. 
5. There will be a reconfiguration of supply chains with less globalization. This will unleash a torrent of capital spending.
6. By the time the coronavirus is defeated, there will be unprecedented monetary stimulus. We are already seeing how the U.S. government is spending money — some workers will get more in unemployment insurance than they were making in their jobs, retirees who suffered no losses due to the coronavirus are getting stimulus checks, rich hedge funds are taking advantage of the programs meant for small businesses, and so on. Ultimately, a part of this money will flow into the stock market.
7. With interest rates so low, many retirees will be forced into the stock market to generate income for living expenses.

Here;  https://www.thewealthadvisor.com/article/us-stock-market-may-enjoy-biggest-rally-ever-when-pandemic-over?mkt_tok=eyJpIjoiTTJWa09XSXhNV00yTURWaCIsInQiOiI0ajFtSjRLWUFHYVhrVTBkTzQ2aFNlblF5M3I4Q0t6UkMwMnBKTTlyXC9maUhpY3JzXC90cTZ1YmZpXC83Z3hTUzRaVGxTS2RwQXFwOE9DUXZUSE80MXl2Y3NIVmw2ZFFXMk8ySXZESWRyajlWdmlEVkZwQ2dsVGRpd1o4b3J5SzhQbSJ9

Yes friends, it's true.  The stock market may very well go up, up, up.  But most Americans don't have any money there so will never benefit from the massive amounts of money printing by the FED, most of which ends up IN the stock market.  So the FED pumps the prices back up.  The well off and educated Americans end up making money as their stocks climb.  The 70% of Americans who don't have $1000 and never will could care less that the market is back up because it doesn't benefit them and most likely never will.

But make no mistake about it.  The massive money printing charade WILL COME TO AN END.

One day the FAITH in the US Government will collapse and when it does so will the US Dollar collapse.

At this point we don't know if America will collapse before the rapture of the church or after.  It would make a lot of sense that the rapture would be the pin that pops the financial bubble created in the USA.

Maybe a likely scenario is that we reopen the nation following the Coronavirus scare, the stock market goes racing back, the restaurants and bars open and get packed again, the sports teams start playing and everyone says, "yea!!  Peace and safety at last!"

Then the rapture happens and destruction comes upon them suddenly.

he U.S. stock market may enjoy the biggest rally ever when the pandemic is over

The U.S. stock market may enjoy the biggest rally ever when the pandemic is over

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