The stock market yesterday was given the green light for more hot air to be pumped in, which means that while the consumer markets dry up we might see a historical last minute stock market run for the next few weeks before the Fed officially starts cutting rates in July.
Rumor has it that central banks have been preparing for a transition, as well as governments, and we might see a rather large rate cut in July, larger than we've seen in a long time.
The stock market itself is the proverbial Hindenburg right now, being pumped full of explosive gas that will inevitably ignite and come burning down. So while there may be potential for big profits in the next few weeks, it will be a high stakes game that you should only put money into if you understand that markets can be closed down early everyday and prevent the little guys from getting their money out, at least before the big players.
You could make 50% earnings in the next few weeks, or you could lose everything. The stock markets are irrational, and it is now the largest operating virtual casino in the world, and the Federal Reserve just positioned a giant pile of chips in a large net hanging above everyone's heads, which has set the tone for a potential fevered last minute rally.
Be careful out there. The flame burns the brightest before it goes out, as they say, and right now the world economy is circling the toilet bowl while the Stock market is being fed thermite and napalm to see how hot the iron can get before the hammer comes down on it. But to short the stock market right now is also a bad idea. Betting money you can't afford to lose is a bad idea, and there comes a point where buying high leaves you dry, when you're the sucker that paid top dollar for some magic beans. Sure, those beans might eventually grow into something for the next cycle, but until then you gotta live with that regret, and maybe people who depend on you will to.
If I'm being really honest though, I don't think anyone is economically safe right now, and the only people left trading stocks for their own benefit are the junkies who just can't stay away from the FOMO and the euphoria, and by staying too close they may get sucked into the traffic accident instead of just observing it up close. The fear and the panic coming to the stock market in the near future may make 1929 seem like a run of the mill correction, at least we are setting up for such a disaster, and once the collapse starts all bets are off for what governments will do with or to each other.
Be safe. Thank you for reading this brief post. Shares and comments are always welcome.
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