Stock market pullback: is it coming, and who will it affect?
I have been forecasting a distribution cycle in the U.S. stock market for a while now. Which means the insiders are selling to the less sophisticated investors, pension funds, money managers, and people that are almost required to buy stocks no matter what. Since we’ve seen such major declines in some of the big names like the “FANG” stocks such as Facebook, it’s a huge indicator the overall stock market may have hit its peak.
Furthermore, something I’ve discussed in the past is the advance decline line. The overall market can be manipulated by buying some of the most heavily weighted stocks in the S&P 500 or the Dow and making it look good — or as it is commonly referred to, “paint the tape” — even though the majority of stocks are declining, not advancing.
I believe we are going lower; is it going to be a waterfall decline or a crash? There’s no way to know for sure, but it is doubtful with so much of a propensity for the Working Group on Financial Markets (AKA the Plunge Protection Team) to ensure that everyone that has something vested in the stock market is protected. And, while the average individual may not be a stock market investor, they have a vested interest in its stability. Here’s why.
A great deal of the economy rests on what the stock market does. Some may have a pension plan that is tied to the stock market or a money market account that is using commercial paper tied to a corporate bond; in other words, it’s very pervasive within the financial system to be tied to the overall financial markets. Even when you don’t think you have a direct connection, you likely do.
Hard times are here, and they’re going to get harder
With the ongoing supply chain breakdown, what we’re seeing in the energy markets, and the overarching theme of uncertainty that has arisen, it’s time to get your house in order. All markets are affected by uncertainty; the stock market, metals markets, real estate, and we are all affected when these markets experience turbulence.
For those that aren’t even in the stock market, my best advice is to live within your means, and downsize if possible. It’s a matter of stepping back, realigning, and budgeting to prepare for the future. That would be step one for most people.
Step two would be to hold on to the best asset class to be in on a long-term basis, an asset class that remains valuable even in times of high uncertainty: precious metals. For millenia, gold and silver have been coveted because they represent true, indisputable value. There’s a reason the word ‘silver’ is synonymous with money in so many languages; food for thought.
Your weekend watchlist
What I’ve discussed here today is an extension of my recent interview with Elijah K. Johnson of Liberty and Finance. You can watch the full interview here.
In case you missed it, I recently had a discussion with famed entrepreneur Reggie Middleton. We talked about global macro, the cryptocurrency industry, IP and patents, and tokenized precious metals. This is one you don’t want to miss; you can watch it here.
And last, but certainly not least, the third episode of the Silver Psyop is now live. Watch this episode on silver suppression and manipulation, available on YouTube now.
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