Sunday, August 23, 2020

October Stock Market Crash??

The Domino Effect: How to Create a Chain Reaction of Good Habits

Economic

Dominoes were falling

Since 2019!

Gerald Celente: markets to implode, crime rate will spike

Thursday August 20, 2020 18:27

The stock markets are not reflective of economic reality, and this overdue correction can be expected by the Fall, said Gerald Celente, publisher of The Trends Journal.

“I believe, September or October, we’re going to see the markets unravelling the way they should. There’s actually no reason for them to be going up, only a few stocks should be going up and the whole thing should be breaking apart,” Celente told Kitco News. “When the winter starts coming back in, people start getting real again.”

“Before this happened, [in 2019], there was negative GDP in Japan, negative GDP coming out of Germany. How about Mexico? They were in a recession already. How about the riots going on in Lebanon, in Hong Kong, in Chile, in Bolivia, in Colombia, in India. India had seven quarters of declining GDP before [COVID-19] hit in 2020. They fired over a million people in the auto industry,” he said.

DYI:  This is exactly what DYI has been reporting on before the COVID-19 HOAX arrived with world wide economies already declining.  The U.S. market’s drop and fast recovery is reminiscent of the initial 1929 decline and recovery with the majority of market participants believing the long overdue bear market had come and gone.  As with that history and today’s current event(s) this will not be the case.  The timing is debatable – whether September or October – [or some other time period] – is obviously up for grabs.  What we do know is that the stock market and bond market especially high yield and junk are MASSIVELY overvalued.  With world wide economies continuing to decline along with the U.S. Wall Street and Main Street will reconnect in a viscous decline.     

On improving the current job market, Celente said that the Federal Reserve will likely continue their stimulus measures, but to no avail.

“They’re going to keep trying to pump it up and it’s not going to work,” he said.

As the jobs market remains below pre-COVID levels of productivity, and the average worker gets more frustrated, crime will start to escalate, Celente added.

DYI:  My model portfolio remains with high cash level – [short term bills/notes] and precious metals along with their respective mining companies.

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 8/1/20

Active Allocation Bands (excluding cash) 0% to 50%
65% - Cash -Short Term Bond Index - VBIRX
35% -Gold- Global Capital Cycles Fund - VGPMX **
 0% -Lt. Bonds- Long Term Bond Index - VBLTX
 0% -Stocks- Total Stock Market Index - VTSAX
[See Disclaimer]
** Vanguard's Global Capital Cycles Fund maintains 25%+ in precious metal equities the remainder are domestic or international companies they believe will perform well during times of world wide stress or economic declines.  

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DYI

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