The week’s gone by and markets are still doing just what I predicted: bounding forward sideways until something breaks up or down.
My Money Is on down
Partially because of Bitcoin and partly because of politics. What’s happening in Washington cannot be good for your money right now – between the Trump administration’s dealings with China, the Middle East, and even Ukraine. This impeachment deal is going to be trouble for Trump, and further erode stability, especially in the markets.
Have you noticed also that the inquiry’s running on a 45-Year cycle with the Nixon impeachment? Remember, we saw the market react very rapidly in late 1974. When did Nixon resign? You betcha.
Prepare for Volatility
Expect the markets to be very volatile over the next month or two. It’s a good time to be selling stocks near the top, because I don’t see things getting much higher. We may make a new top in Nasdaq, but probably not the Dow or S&P. That means we don’t have the same upside we hoped, and we’ll still face the short-term downside we feared if we can’t make new highs in the next week or two.
Harry Dent wraps up this week with an economic forecast showing how history is set to repeat itself in the form of an impeachment. Expect to see one last cresting wave before the market’s downturn, he says. Why down & not up? Two words: Bitcoin and politics. Sign up for Boom & Bust here: https://pro.dentresearch.com/m/1051908
Posted by Economy and Markets on Friday, October 18, 2019