Stock Market Scheme of Things 2/10/25 Through Spring/Summer PDF
Last February I posted the following. It has been my most read article for 2023 and right on the money as to content.
Stock Market Scheme of Things 02/23/2024 Thru Spring
Here it is February again so here we go again. For years I have been posting the same images, showing a reoccurring pattern that only a totally manipulated market could generate.
The pattern though still close to omni present is quite a bit less effective than it has been over the past year. There is clearly more selling pressure, even though averages are close to new highs. Again, when this pattern begins to fail completely, it is all over.
The stock market is all that drives the economy. Corporate insiders get paid more by means of rising stock prices than they do with actual corporate profits. Government accounts for about 25% of GDP but government spending indirectly fuels a far greater percentage. Government spending causes spending in the private sector, so there isn’t a lot in the economy that is not driven by government. Financial asset provide money that funds consumer spending. Wages are stagnant and pay any bills that get paid.
Many decades ago, consumer choice took a back seat in generating spending. Consumers no longer make unique independent choices. The choices they make are purposefully limited and they see the products and services producers deem worthy to be seen.
We have had an economy where asset prices increase. That creates demand and asset prices increase even more. This has worked great for years but curranty it has stopped working.
The fish are not biting, They are not even smelling the bait. Central economic planning is all the same. The rich planning an economy for the poor will fail just as does central planning by governmental means. I just takes longer and creates more dramatic crashes.
In terms of what to look for this year, not much has changed since this time last year. The biggest difference is that the longer it takes to unravel, the more damage the unraveling will do. Chances are good it will all collapse at once.
Once, Doug Dillard, a famous banjo player was asked how tight he tightened the head on his banjo. Doug said it is good to tighten it until it almost breaks. That is the kind of dilemma the worlds of economics and politics are in these days.
Views: 2
