It’s Better if You Feel the Pain
As we sit here today and observe the markets making a new high and await the start of the Macro Re-Adjustment that is on track to start tomorrow, it is easy to second guess a long term view.
You would have to go back and review a lot of our posts going back to late 2011 at the start of the artificial markets and more importantly the start of the last stage of the Artificial Valuation cycle in March 2019 to see how this evolved.
If you are a viewer that starts to read this blog today, you will probably feel like the smartest person in the world tomorrow, but more than likely you will only catch a small part of the re-adjustment that will unravel from here. The quickness of the decline from here will make it difficult to stay with the long-term readjustment target.
So more input on this tomorrow. The markets have not addressed the underlying artificiality and manipulation factors that will be gradually eliminated as the markets move to work together with the total economy. And we are not talking about the COVID period, but the whole 9 year roll-out.
As crazy as this might seem, with the depth of the irregularities built into the stock markets at this point, regardless of who wins the election, the September 2011 S&P high looms as a value to be tested over the next three years, that is a S&P price of 1229.