As reported thoroughly in this and previous issues of the Trends Journal, draconian lockdowns persist and intensify in many nations across the globe.
With each passing day, more businesses go bankrupt, unemployment claims increase, suicide rates climb… and equity markets keep rising.
There is absolutely no connection between Wall Street and Main Street. As Gregory Mannarino and the Trends Journal continue to illustrate with facts and data, it’s a Bankster-rigged game. Gregory’s new article, “DOLLAR DEATH: GETTING CLOSER” reveals the true dangers of their money-pumping scheme and what to expect in the future.
On Main Street, yesterday Bankrate.com reported that a mere 39 percent of Americans would be able to cover an unexpected $1,000 expense. Last year, 41 percent said they could.
If there were an emergency cost such as a car repair or medical bill, 38 percent would need to borrow money either by using a credit card or borrowing from family.
As for Wall Street, according to the U.S. Federal Reserve, America’s richest owns 36 percent of the privately-owned wealth, up sevenfold from 1990 when they controlled just 5 percent. The Fed reported that as of 2014, the top 1 percent of Americans owned as much wealth as the bottom 90 percent.
Since the COVID War was launched by politicians, the stock market shot up since it hit lows back in March, pushing up the riches of the world’s billionaires by nearly $2 trillion.
Biden Bubble?
The Dow set three consecutive record highs during the week of 4 January as investors expect a Democratic president and Congress to shower more stimulus on households and businesses.
During 2021’s first week of trading, the Dow gained 1.6 percent, the NASDAQ added 2.4 percent, and the S&P 500 index grew 1.8 percent.
Energy, financial, and material shares led the gains. These industries rise and fall with the economy; rising stock prices here signal growing confidence about the economic recovery’s future.
Investors are shrugging off recent, weak jobs reports and other economic trouble signs “because they’re confident that more fiscal stimulus is coming,” Michael Arone, chief investment strategist at State Street Advisors, commented to the Wall Street Journal.
As COVID vaccines enter people’s arms, “we’ll be able to push beyond the weakness… hopefully in the not-too-distant future,” he said.
TREND FORECAST: Throughout this issue of the Trend Journal, we continue to note that in virtually every business sector, from real estate to restaurants, hospitality to automobiles, the word on The Street is that when much of the world gets the COVID vaccine, businesses will bounce back, the economy will boom, and Happy Days will be here again.
Yes, there will be an economic bounce back. But it will be a sharp move upward followed by a long-term downturn as the “Greatest Depression” spreads across the globe. The economic devastation from the politicians’ COVID War has permanently destroyed the businesses, lives, and livelihoods of hundreds of millions.
Today, for example, in response to the new lockdown orders coming from the rulers of Ontario, Canada, with a population of 14.7 million, Dan Kelly, the president of the Canadian Federation of Independent Business (CFIB), told Bloomberg, “I don’t know how many businesses are going to survive, quite frankly.” He said, “We at CFIB did an earlier estimate of 160,000 permanent business failures before the end of that pandemic. That’s seeming light to me right now… we forecast that while there will be a sharp spike upward.”
Yes, more than 160,000 businesses permanently closed, the majority of which will not reopen despite a splurge in vaccines being pumped in the arms of people.
Today, Canadian Prime Minister Justin Trudeau announced the Canada-U.S. border will remain closed to all non-essential travelers until 21 February.
As we keep noting, they make up these lockdown rules, times, and dates without a scintilla of scientific evidence to support them. For example, what brilliant bureaucratic health minister came up with February 21st? Why not 19 February or 9 March?
Why? Because these are the psychopathic, narcissistic, sociopathic, pathological liars that start wars, such as the COVID War, based on lies and have no strategic plans to fight to win and have no exit strategies.
Market Madness
Overseas, Japan’s Nikkei 225 index advanced 4 percent to reach its highest mark since 1990, bolstering the outlook for tech stocks after the nation’s government declared a state of emergency in Tokyo in an attempt to control surging COVID case numbers.
South Korea’s Kospi index jumped 4 percent to a record high on 8 January. Shares of Samsung Electronics shot up 7 percent after predicting a 25-percent boost in this quarter’s profits.
TREND FORECAST: Again, the market’s euphoria has been driven up by money junkies who are disconnected from the real Main Street economy. We maintain our forecast that there will be a sharp market selloff, pushing the indexes into bear market territory.
BITCOIN. In last week’s Trends Journal, we warned, “Considering Bitcoin’s surge, we do expect a market correction. After spiking above $41,000 last week, Bitcoin fell some 10 percent, wiping $150 billion off the cryptocurrency market in 24 hours.”
We had also forecast, “The downward breakout point will be hit should prices fall below $25,000 per coin.” With Bitcoin trading at $34,404 as we go to press, we maintain that forecast.
GOLD/SILVER. Gold had a down day today. After hitting a high of $1,864, it closed down at $1,856. With the dollar firming and U.S. Treasury yields rising, gold – a safe-haven hedge against the inflation and weak dollar – has been falling.
However, we forecast a continuing weakening of the dollar and rising gold prices as the Biden administration pumps in trillion of “stimulus” to artificially inflate the sagging economy.
We also maintain our forecast for silver, which closed at $25.67 today to rise above $50 per ounce this year.
OIL. Despite the spreading fear of rising COVID cases globally, reports of tighter oil supplies, expectations of a drop in U.S. inventories, and Saudi Arabia’s plan to cut output by an extra 1 million barrels per day (bpd) in February and March pushed oil prices to an 11-month high. Today, Brent Crude closed at $56.55 and West Texas Intermediate up 1.74 percent, closing at $53.16.
For five straight weeks, U.S. crude inventories have been falling. Analysts expect them to drop by another 2.7 million barrels.
With many nations going into lockdown, and Beijing and Japan now imposing a new state of emergency orders in areas throughout their countries, considering the hard realities of economic decline, we forecast, minus a wild card event such as the military conflict in the Middle East, oil prices are near their peak.
However, considering the reality of how markets are rigged, i.e. JP Morgan Chase rigging the precious metals market, in a criminal, anything-goes world, oil prices can be artificially pushed higher by The Wall Street Gang. (See our 29 September article, “DON’T CALL THEM CRIMINALS – THEY’RE ‘WHITE SHOE BOYS!’”)