Since the appearance of the bearish islands reversal, which we noted two weeks ago, stocks have fought and still have not been able to restore the highs reached earlier in June.
And on Tuesday there was another reversal of the bear island:
The resistance displayed by these reversals and the resulting trade volatility are exactly those indicators that we expect to see before the market downturn.
At a minimum, it is obvious that the rapid surge in stock prices after the March bottom ended in early June. Shares have fallen since then and only today closed another 2%.
So, in the conditions of a sudden market struggle, what is more likely: prolongation or resumption of the rally?
We invited Charles Hugh Smithowner OfTwoMinds.com As an expert this week in the program, he reveals three key threats to the market that, in his opinion, are currently dangerously underestimated.
OneThe sentimental mood remains euphoric, however, in the United States, 19 cases are resembling fuzzy ones. The market currently treats coronavirus as its ancient history. If cases and deaths continue to gain momentum from here and cause a rollback of the removed restrictions, the stock will be forced to set the price as additional damage to the economy.
TwoThe Federal Reserve is increasingly criticized for its policies and interventions painfully exacerbating social inequality. The Fed may not be able to continue to deny and reject, and may redirect more of its future efforts to Main Street against Wall Street, removing the key (only?) Pillar supporting today’s net stock prices.
ThreeOrganizations like the Fed, which is part of Deep State, which has fought with President Trump for the past four years, may have an incentive to let the market crash this summer. Trump very clearly linked the work of his administration with the work of the stock market; if the Deep State wants to deny him a second term, this is the deadliest weapon that they can shoot at him.
In this week’s video, we discuss Charles’s prospects for the “triple threat” with leading partners of New Harbor Financial, an approved financial advisor to Peak Prosperity, who then also share their latest perspectives for investors.
Suffice it to say that now we see more and more signs of market vulnerability that only careless can ignore:
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Anyone interested in planning a free consultation and portfolio review with Mike and John can do this: clicking here, And if in the past few months you have become one of the many readers who are new to Peak Prosperity for the first time, we urge you to put your financial situation in order along with the current physical preparations of coronavirus. We recommend that you do this in partnership with a professional financial adviser who understands the macro risks to the market that we discuss on this site. If you already have one, great. But if not, consider talking to a team in New Harbor. We have established a “free consultation” relationship with them to help people like you.