Stock Market Update 8/24/16

bWe are headed into the historically weakest time of the year. Most market crashes have occurred between about now through the middle of October. The Bank of Japan, their central bank, practically owns their stock market. Central banks, including the Federal Reserve, either own outright or through surrogates more stock than most can fathom.

Expect an outright world wide effort to keep U.S. equity prices from falling during this fragile time. There are virtually no buyers other than those just mentioned and corporations buying their own stock. There are also short sellers to squeeze.

Can they pull it off again? Odds are, yes. Central banks do not have all the money in the world but they can counterfeit as much as they need.

If they cannot support the market, it will crash. I honestly don’t know which it will be but this is an absolutely critical time period.

 

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