posted September 24, 2019 05:59 AM            

Veteran financial market observers will tell you that anomalies in the financial markets last week point to some sort of black swan event on the horizon. It could also be the signal for a new Bretton Woods-style reboot of the world’s financial system.

To understand, take a look at these two graphs from September 19th. The first is the Repo market, and the second is SOFR (Secured Overnight Financing Rate)—the replacement for Libor.
http://www.zerohedge.com/s3/files/inline-images/overnight%20repo.png?itok=ZRVq-AIV
http://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/SOFR%209.18.jpg?itok=VdFxRkwo

The Repo market is basically a market where banks etc. use long-term high-quality financial instruments like U.S. government bonds as collateral to borrow here/now cash. The second is the rate at which banks lend to each other. The jump from 2% to 10% in the Repo market in a single day either means insiders think U.S. bonds are about to become worthless, or else some huge bank is about to go bust and so nobody wants to hand any cash over to them.

The second, SOFR, moved 282 basis points, in a market where people typically freak out over a move of even 20 basis points. The SOFR move, at the very least, indicates that a mega-bank or several mega-banks could not get money from other banks. This sort of move was last seen at the time of the Lehman shock.
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So dear friends, please exit 50-70% of your stock market investments. Why be greedy? The Dow can never cross 28800 and stay put with stability in the next 2 years.
This is a very good time to exit. Once a Bank goes under, as the Rep Rate is clearly saying [Deutsche Bank?], Dow JOnes will fall to 21K or even 16K [though 16K can see a quick bounce up].

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Astrology Articles

posted September 24, 2019 12:53 PM            

Don't be too sure of that statement.

There's no resistance if Dow breaks above 27,360 and good support just below 27,000. If the Dow breaks above 27,400 it could be off to the races.

But, I tend to agree the market needs a shakeout. P/E ratios are way out of line for sane investors. Still, investors have gotten away with buying stocks at prices of 50x-60x-70x and even 100 times their annual earnings...so far.

posted September 24, 2019 04:33 PM            

Please check the Repo rates, the charts Fulford posted are highly abnormal.

And today Max Keiser said the same thing, and Kesier has been spot on about 2008 Crisis and later the Bitcoin boom.

It is wisest to exit at least 50%.

posted September 30, 2019 04:27 PM            

quote:

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Originally posted by iQ:
JWHop,
Anything over 20 PE Ratio is very risky across broader markets.

Please check the Repo rates, the charts Fulford posted are highly abnormal.

And today Max Keiser said the same thing, and Kesier has been spot on about 2008 Crisis and later the Bitcoin boom.

It is wisest to exit at least 50%.

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The overnight repo rate spike could be a function of banks wanting sufficient liquidity to loan businesses to finance expanding operations and heavy demand tends to raise prices for any commodity. Money is viewed as just another commodity.