The stock market may be due for a bit of a correction

I found this curve referenced in an article:

Market Cap to GDP

Seems like a pretty good indicator. I'm not sure if it is predictive but seems more like it indicates vulnerable. If the Fed starts raising interest rates the market will probably drop significantly. Or if some other event. The market looks to be poised to be triggered by some event.

Whatever happens it will not be the end of the World. If there is one constant in the Universe besides death and taxes it's people love to copulate and create economy!

a reply to: dfnj2015

Looking at all the graphs it seems likely that after the stock market goes through its correction it will recover shortly after.

a reply to: dfnj2015

Steadily and regularly buy over the next few weeks or month. You'll make out like a bandit. Promise.

But that applies to all historic stock trade data. Steadily and regularly buy. You win in the long run.

Feel free to compensate me for my advice as you see fit.

Buy gold and silver if you don't want to go broke. Real interest rates are negative right now in comparison to price inflation. Interest rates are going lower & inflation is going higher. Next we'll have more QE (hyperinflation of the money supply). The dollar has already lost @95% of its value since 1971 when we went completely off the gold Standard. Stocks may have gone up but so did prices on most goods/services & real estate. We are still in a debt crisis and the solution is not more debt, though that's what we're gonna get.

Its gonna be different this time around because we already have low interest rates going into the next recession & because markets now know that QE will only drive us further into debt. QE is payed for through treasury bonds & treasury bonds are now yielding below 2%, while real inflation of prices is much higher @ 10%. No one in their right mind is invested in treasury bonds right now. Why would someone want to invest into bonds which are worth less in the future? The Fed is in a catch 22 of its own making. If it raises interest rates stocks will crash & the interest on our national debt won't be able to be paid off let alone the actual debt.

I wouldn't worry, a trade war, trickle down economics for the rich, what could possibly go wrong.

Did I mention the debt? Who cares about what wall street thinks, trump is at the helm....MAGA

www.usdebtclock.org...

It's 420 stocks, gold, silver and Lead to be safe.

oops, looks like trump blinked before China. On a few tariff items. iphones...lol

Idk, my thoughts...the central banks are out of ammo in panic, this bump seems broader and more cardiac than the skirmish of August 16th.....2008 bailing out banks.....this time.....Deutsche bank is already failed but no one locked the door

a reply to: dfnj2015

I would think that Trump is going to do everything he can to keep the stock market as high as possible prior to the 2020 election. I'm not sure if that is a possibility be I think he'll certainly try so when it's time to campaign he can say, "Stock market at all time high...Trump good"!

a reply to: dfnj2015
Do believe the market is reacting to the fact that China would rather shoot itself in the foot than start "Fair trade" with Trump, China is hurting 10 times more than US.....

originally posted by: manuelram16
a reply to: dfnj2015
Do believe the market is reacting to the fact that China would rather shoot itself in the foot than start "Fair trade" with Trump, China is hurting 10 times more than US.....

Right...then why is trump backing down from the Chinese?

www.rawstory.com...

www.latimes.com...

originally posted by: 35Foxtrot
a reply to: dfnj2015

Steadily and regularly buy over the next few weeks or month. You'll make out like a bandit. Promise.

But that applies to all historic stock trade data. Steadily and regularly buy. You win in the long run.

Feel free to compensate me for my advice as you see fit.

You arent wrong

Peter Schiff is one of the few people who actuly know what they are talking about