Cash is the best investment right now, avoid stocks, commodities, bonds & crypto...
Yes, we mean the $USD. The world's ugliest-asset class, the dollar is the place to be until the markets crash.
Concerning, is the fact that our stock indices have mirrored both 1929 and 1987 to a high degree of emotional & psychological accuracy. All our "DANGER Will Robinson, you are DEEP into the economic RED ZONE and playing on a crumbling Wile E. Coyote cliff" alarm indicators started going off last week, and the 3 day decline is also right on schedule.
If we break the October 29 lows, we are in for BIG possible trouble, aka a cliff dive. If that happens, CASH will be King again.
We've been bearish on Gold since 2012, and even with sell-off in past few days and months, gold still isn't going up (as a "safety play"). That also says favor cash in the near term.
Catalysts (mostly hidden from the public):
1. Fed being stubborn
... on interest rate hikes. We hate to agree with either TV and politicians in general, but especially Jim Cramer or Trump (the latter only cared about the election not the actual markets) specifically, but sometimes the proper action solutions can come from the strangest of sources. (we mean short-term solutions, obviously Cramer and Trump can fix nothing long term) Given the election was a referendum against Trump/Kudlow, we shouldn't be surprised by an emboldened Fed when it comes to rates. Keep in mind the irony that Banksters make more money with rising interest rates, and the Fed is owned by the Banksters. Also keep in mind that even if you don't believe in conspiracy between Banksters and the "independent" Fed, the Fed is using statistics which are as fake as Facebook's timeline-- namely unemployment (denominator has been massively wrong for years now) and inflation (they don't even use the proper measuring stick which is obviously gold not dollars).
2. Trade War Escalates
Getting worse not better, and we hate to remind everyone that Trump's pre-election claims of "China is working with me" are total BS. So in actuality, the trade war is getting worse not better. With no election looming, Trump has very little incentive to "talk back the market" from near-term losses like he did all October. Hey, as crazy as his Tweets are sometimes, he was actually successful on the days he talked-up his Chinese relations.
Both of these issues CAN be QUICKLY addressed in the event of an extended downturn in stocks, but we stress the word "extended". If stocks drop quickly (1929, 1987 style), government action is really of no use in a crisis of confidence which occurs too close to recent memory of the LAST crisis.
3. Bad Guys are now for real
Two recent news items should be highly unsettling for the American people...
a) JPM was caught red-handed manipulating the gold/silver markets dating back to 2011 when it peaked. This is serious crime, and causes.... confidence in markets to be non-existent. Not everyone on Wall St is a villain. GOOD people in the markets who actually attempt to analyze the realness of what's going on in markets and rely 100% on the proper MARKET pricing the way the body relies on blood and food and water, are unable to trust the structure of the markets in order to perform their task. Would an honest hard-working market participant making use of actual data and properly procesing it REALLY wanna try his hand in futures again, if he thinks it's all rigged by Banksters? Obvious answer, but the info that markets are rigged is only coming out NOW.
b) Lloyd's $600mm commission on Malaise-an bonds (over $6 billion) is just the starting point of the problem. Lloyd may have been tricked like his investors, so MAYBE it's not fraud, but it's still a confidence issue when the leading bank (on the Dow 30) of "smart" guys can make massive errors of judgment in the billions. GS commission in this deal was an order of magnitude higher than what it made in the Ali Baba IPO-- the biggest IPO in World history. (for perspective). Also, this shady deal was done in the midst of the Financial Crisis, i bet those "earnings" by GS sure helped them convince Wall St their balance sheet wasn't in any trouble! (hint, GS was bankrupt like all other major world banks in 2009, they were all allowed to not report the paper losses and were also financed by the gov't to keep afloat)
Notice, in both of these cases the authorities have captured lower-rung employees who are willing to testify that the higher-ups knew the details of the schemes.
Does that sound familiar? And we are back to our regularly scheduled program of associating literally EVERYTHING with one orange-haired man who MIGHT have a few underlings willing to testify that he was the ringleader.
Lastly, Dems shouldn't get too excited. If and when Trump is impeached, we shall all learn much more about the main fact in the case: The Russians were able to get ahold of Hilliary Clinton's official and unofficial emails. In other words, while they can be busy painting the other side as criminals (ignoring the fact that they in the past have done similar, and would've done the same as the Republicans had they been presented with Trumpian email breaches), they'll be highlighting their party's own smelly trash.
So really there's no winning either way, a big "L" for both parties and more importantly the American People and their fragile confidence.
Anwyay, watch closely this week. Again, if we violate the floor on October 29, we could be fucked from there in record time (hours to a day or two). There's no LAW which declares that cliff dives can only happen in Roctober.