👉This Stock Market is Not The Real Economy !!
This freakshow is getting freakier. The economy is in free fall. The country is sinking deeper and deeper into a sea of debt, just passed the 25 and a half trillion mark yesterday. The U.S. economy shrank in the first quarter. The GDP fell at an annual rate of 5% in the first quarter, a bigger decline than the 4.8% drop first estimated a month ago, the Commerce Department reported. Boeing announced Wednesday it would lay off around 13,000 workers, including 6,770 involuntary cuts, while 5,520 staffers were accepted for voluntary severance packages. This is a huge indicator. Boeing is a very Major Player in our economy. This news comes as the U.S. Corporate profits drop in the first quarter by most since the 2008 Great Recession, the Commerce Department said Thursday. That is the largest decline since the fourth quarter of 2008 during the Great Recession. US economic activity collapsed in April, according to the Chicago Fed. The national index, which draws on 85 economic indicators, crashed to a record low -16.74 in April versus -4.97 in March. Existing home sales collapsed 35% Year-over-year. Biggest Drop Ever As Buyers Forfeit Deposits. It's finally gotten through to the dumbest of the dumb that the housing bubble is real, and so is the collapse that's got to come with 50 million people unemployed and millions more coming, and no way to prevent millions of people from losing their homes (and their cars and toys) in the next year or two. After all, Why buy if you can keep renting for free. 100,000+ businesses have been decimated by the Governor's orders to shut down. Those businesses are not coming back. The full extent of the damage to this economy won't be known for several more quarters when businesses report their sluggish earnings if there are earnings at all. But All this doesn’t matter. The bad news is good news for the market again! The market seems detached from reality. This market is not the economy. We do not have a market anymore. The current stock market valuations are completely unhinged from the fundamentals. This Stock market is simply a Ponzi scheme! A gigantic market crash is looming. This will end badly; they are only trying their best to make sure it doesn’t happen in their watch. Q1 results didn't really show the pandemic impact. Q2 results across the board (generally) will be abysmal. Q3 & Q4 will also be lackluster as people save, and fewer people feel comfortable going to malls/spending cash in general. The only thing keeping this up is the FED. Absolute insanity - Wallstreet having another chance to offload their toxic assets onto retail investors. The Fed is propping (printing and pumping money) to stocks that elites are holding; it is an insider trader scam. In Weimar’s Germany, stocks hit a remarkable rally until everything crashed in 1942 and then again in 1927. The idea of an endless “fiat-driven bull market” is a gross lie backed by bankers and their shady supporters. Central banks are printing/digitizing currencies. Japan has been doing so for around 30 years. This is the Japanification of America. Equities are a central bank Ponzi scheme. Period, the end. The Fed is literally counterfeiting trillions and using that money to consolidate ownership of real assets. We all know that the last solution becomes the next problem. So what do you think the next crisis will be?! Reminds me a bit of the famous comment back during the last crash, "That's Why I'm Richer Than You"! The fact that bank stocks are rising again with earnings tanking is a very bad omen. I don't want any exposure to the Fed and its rigged hellhole. People think liquidity injections means the market goes up, but that isn't true at all. The Fed has been using liquidity injections since practically 2008, and it is getting weaker and weaker every time. Get this: they pumped the US stock market up 30% BEFORE THE WUHAN VIRUS. An obvious attempt to fleece the retail investor. They will do the SAME THING AGAIN. The market looks more and more like a massive pump and dump scheme now than it did BEFORE the depression, which is insane! Companies selling common stock like there is no tomorrow, commercial investors extremely bearish, huge short positions in various indices, etc. I am sick of trying to go for that 10 to 15% return right before a crash. It is not worth it at all. Not with the stocks back to 95/98% all-time highs. And 3 trillion sounds like a lot, right? Well, it isn't much if you think about it. Total corporate debt stands at $15.5 trillion, and overseas dollar shortfall is intense. So really, if you want to be in stocks, you can only be in the ones the Fed/government guarantees. Which is like ten total: Amazon, Google, Microsoft, Boeing, Apple, the banks, and maybe a few others. Everything else, in my opinion, is extremely risky. Don't fight the FED! They have a digital printing press. We have mortal blood! Records reflect reality, not the other way around. The S&P markets reflect the moves of four key constituents (and a dozen other laggards), but 75% are doing poorly. The Fed is preening the business community whilst generating hype in the retail investing market. The 'real' economy is the real economy, and that space is in a 100-year world of hurt. Look at the top line of most companies today and tell me where their P/E valuations are coming from. Where is Price Discovery when the Fed is now a player with Blackrock? Records could reflect reality soon - don't be fooled. Just wait till August, September, and October. That will really show what is going to happen. Right now, the stocks are way over the inflated cause of the stimulus package/care package, one of which giving unemployment a $600 a week boost for people. The real trouble comes when that stops, small businesses aren't coming back, and unemployment isn't going down as quickly as we'd hope. I think the market will see a big drop in those months. This current situation is not fundamentally sound to invest. That's why you hear people like Warren Buffett not willing to invest in the current climate. The corporations are getting bailed out, but when it returns to profit, The Government suddenly turned dumb and did not keep those shares to receive profits and dividends to at least return money to the taxpayers that bailed them out in the first place. On top of that, they don't pay taxes. The federal reserve keeps manipulating prices. And we never know what companies they’re going to save or let fail. Short sellers who lose all their money should be able to sue the federal reserve and get their money back. America fails on many levels. It is like an alternate universe. - Savers get punished - Precious metal stackers get punished - Hard-working middle/poor classes get punished - Those who are essential workers who actually have worked get punished - Those who got laid off get $1000 a week for staying home, AND they may get a back-to-work bonus. America is now more communist than China. More QE, More Debt, More Asset Purchases. The economy sure is doing great! We should shut down all the small businesses so we can get DOW 30,000! Fed has 200 trillion liabilities, and their assets are garbage nobody wants, i.e., treasuries, ninja mortgages, zombie stocks, etc. The Fed is the garbage dump yard of everything that is worthless. If you want to hold dollars or play this market, you should have your head examined. Until the world can ditch the dollar, we can screw them for a bit more. But the Fed can do very little when the almighty dollar collapses because no one wants it any longer. Then look out below, or should I say look out for hyperinflation. They've Taken Your Job, Your Business, Your Freedom, and Now They Are Coming For Your Social Security. You have to be insane to invest in the stock market these days. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Stock market sentiment had been shifted to full-on speculation since FED started Brrrrrrrrrr. There is nothing about this market that has to do with the Economy anymore. The Reasons I believe why the stock market will go down significantly more in the coming year are : 1). 330 Trillion dollars of very poor credit market debt that needs to be deleveraged, and the Fed's 1 Trillion farts can't do anything to stop this. Japan has been doing for 30 years what the Fed is trying to do now. Guess what: it won't work when the world has 330 Trillion dollars to deleverage by at least 50% with Quadrillions in derivatives. We're in a deflationary trap and spiral. 2). Corporate share buyback Ponzi model has come to an end as public pension funds (states, municipalities, cities, etc.) have no tax revenues presently to buy corporate bond issuances to fund corporations who use that very money to buy and drive up their own stock to stuff management's pockets with bonuses. 90 cents of every dollar S&P 500 companies earned in the last Five years also went towards corporate buybacks combined with an unprecedented issuance of corporate debt and equity dilution, helping this endless Ponzi scheme. Already, more than 40 S&P 500 stocks have suspended or slashed dividends this year, with dividends expected to shrink by 23% this year. Buybacks could take an even bigger hit, plunging by 50% in 2020. 3). Economy for over a decade barely growing at 1% average despite all the above Endless rounds of QE for 12 years now, interest rates pushed to zero punishing savers and tax cuts that were really not necessary. 4). Consumer debt to income ratio at unsustainable all high time levels (175 debt to income ratio and climbing higher as well as 12 times debt to savings ratio and climbing higher) with real unemployment (unemployed, underemployed, and not counted in the workforce) at 50% plus. 5). All stock market indicators are at all-time high levels. S&P P/E was at 21.5 when S&P was 3393, and now, even if you cut earnings by 25% which is VERY conservative, you have P/E moving closer to 25 which is la-la land (you have to wait 25 years to get your money back on your principal which is crazy); Price to Sales Ratio over 2.5; Enterprise Value to EBITDA over 25; Buffet Indicator (Market Cap / GDP) over 135%; Shiller P/E over 27; Q factor (the market value divided by its assets' replacement cost) at 1.76. In fact, this is the most expensive time to buy the stock market since the dot com bubble. 6). The bond market has been screaming major recession/depression and deflation for almost a year with yield curve inverting three times and the 30-year T trading almost at 1% (totally crazy). 7). M3 essentially at zero with the consumer (which represents 70% of economy traditionally and 90% in 2019) tapped out on debt and 50% unemployed/underemployed. Meanwhile, we have overcapacity and overproduction for consumers who have no more money. This is a signal of a looming depression soon to be followed by hyperinflation. 8). Corporations (30% of the economy) already in recession since the start of 2019 with little to no earnings expansion over the last five years. 9). The corporate bond/debt market in the mother of all bubbles with 90% of bonds trading at one notch above junk status. 10). The IMF has stated that this year, the global economy will experience the worst recession since the great depression. It has also stated that for the first time since the great depression, both advanced economies and emerging markets are in a recession with growth in advanced economies at -6.1% with income per capita projected to shrink for over 170 countries. Most economists are expecting the Q2 of 2020 to be in the -20% plus range in economic contraction, and this will be catastrophic. 11). The debt to GDP of all developed countries in the 150-300% range.Not really a surprise. Developed world Governments have been running 6% of GDP a year deficit just to grow at 1-2% per year. If individuals or companies did this, they would declare bankruptcy after seven years. 12). The stock markets now are comprised of 5 companies representing 25% of the S&P and 40% of the Nasdaq. These percentages are beyond alarming. Facebook, Amazon, Apple, Microsoft, Google are up 11% on the year, and the rest of the 495 companies of the S&P 500 are down 15% on the year. We have two markets in essence. MSFT trading at 27 times 2021 earnings estimate, AAPL at 22, AMZN at 58, GOOG at 21, and FB at 23. The rest of the 495 companies of the S&P 500 trading at 16. Not a healthy market. P/E ratios should not be over 16. 13). Healthy stock markets don't go down 35% and swing back up 30% in a matter of a month. This type of volatility always signals lower prices ahead. We are, in fact, in a horrible company. This is the fastest 35% downward move in the stock market. And only two other times the stock markets have gone up 30% this fast: the first leg up of the Great Depression and the first leg up of the Great Recession. We all know what happened afterward...lower lows. 14). Major head and shoulders top forming while we are hitting the 61.8% Fibonacci level and bouncing around the S&P 3,000 wall. We are looking very weak, technically. 15). Bear markets last, on average, 15 months. We're not even in the second month of this bear market. Wall Street will soon be shorting the market to drive it down and buy it at a later date for much cheaper. Don't kid yourself: Wall Street is playing the public for fools and their greed to slam the market down and make money will happen before they buy everything for 50 cents on the dollar. 16). Retired baby boomers pulling money out of the stock market like no tomorrow, while millennials have no money to invest. 17). Berkshire Hathaway sold 8.6 Billion of equity and only bought 4.4 Billion in 2020. NET-NET, they have liquidated Berkshire Hathaway sold 4.2 Billions of equity. 18) The market idiots are out in full force with their ignorant punch lines. Be careful of the mainstream media, Wall Street, and government. They are all charlatans, liars, and manipulators. They dig a hole, stand next to it and tell everybody there is gold inside. We are a two-tiered system comprised of crony capitalism combined with the worst part of socialism. Large corporations are benefiting during the good times and during the bad times when these same companies who should be going bankrupt or getting bought pennies on the dollar by more responsible corporations, or getting merged with competitors are getting selectively bailed out by the Federal Reserve who is picking the winners and losers by their size and too big to fail criteria. Crony capitalism on the way up, socialism on the way down. This, my friends, is a broken, corrupt system. Do you want to have a glimpse of our future? Go look at the Nikkei from 1989 to today. Japan has been doing this for the last 30 years, and its market is still down 50% from its all-time high. The stock markets are now trading in swings like penny stocks with all free-market price discovery destroyed and not an ounce of sound monetary policy left. Stocks and bonds are trading solely on what the FED is doing and directly correlated to their balance sheet, which is total insanity. You have a bunch of d-bag academics (who think they know best) not only fighting mother nature but also fighting the principles of economics where boom and bust cycles need to be normal occurrences left to their own devices for productivity to improve over time. But the Federal Reserve doesn't give a hoot about the principle of economics, and they have become the real virus (they are the reason we're in this mess) infecting the world because they have us play the game with one set of rules yet those rules are constantly broken by them to be the buyer/lender and owner of last resort and implement their grand scheme of becoming the world's central bank and having the entire world as their slaves. If common folks had this behavior, they would end up in jail. This is the real virus, and we won't be able to get rid of it. Who wants to invest in a rigged market where prices are not based one bit on sound economics like reasonable P/E ratios, earnings, free cash flow growth, and dividends where earnings are cratering. And if you think the Federal Reserve is here to rescue the world by propping up the markets for the sake of humanity, don't be naive, think again. They are a self-serving private bank (no more Federal than Federal Express and not even a reserve and truth be told not even a bank). And if they are to buy the market instead of their traditional usury of buying bonds, they will do so at a much lower price than the present overvalued market. This is the biggest ruse of all time, having people think the Federal Reserve is on their side when their true intent is to crash this market and buy everything at 25 cents on the dollar. The very timely Coronavirus is the medium that is exposing the fragility of this corrupt, selfish, self-centered astronomically over-indebted over-leveraged system. Keynesian economics has run its course and collapses on its own weight. The jig is up, and it's game over. The central banks and corporations have been controlling the population for centuries. Economy collapse and starvation have been used to control and conquer for thousands of years. The same strategy is in play now for global dominance by design. They will control every aspect of our life. China is a role model for The coming New World Order. It's all fake, and I believe the Black Swan is the Federal Reserve itself. And the US government is the real virus. The correction will occur by having an entirely new system. No doubt, hyperinflation will occur. We will have to start over again, like Germany, Rome, and other fallen nations. This was The Atlantis Report. Please Like. Share. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. 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Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
