TO MY BLOG READERS:
I cautioned the rally known as the TRUMP TRAIN is a FOOLS RALLY. Yes you can make and many have made a lot of money in a 30% up bubble in market overall prices. Ranging from Real Estate to Markets price across asset classes has risen dramatically over the very short window of time. But when the SUPER CRASH Hits and it will the profit will turn to loss in a finger SNAP. We have told you how to protect your own asset base. You will not have time if you delay into May.
The math modeling includes the following:
- THE USA has a down graph on GNP growth now under 1% at 07% for the first quarter or the slowest growth rate since the depth of the great recession three years ago. SLOWEST GROWTH IN THREE YEARS under Trump. That is what is REAL.
- Next The Price Earnings of equities and bonds have reached market record high’s that are out of line with market history. The market is hideously over priced and with no risk safety nets.
- The Congress of the United States is divided bitterly, dysfunctional, can not pass a USA budget let alone stimulate economic growth with policies. The dysfunction within an AT WAR divided congress is a cost to the world on policy, direction and economics. There is no way given the DEBT load of the USA that without a switched on turned on progressive CONGRESS passing INSPIRED LEGISLATION that the main engine of economic growth – THE USA – now in down bubble and close to recession statistics can restart inflation from deflation and rebuild economic trust confidence and growth.
- Automotive crashed in the first quarter – durable goods crashed – unemployment rose – lay offs are skyrocketing – retail is crashing Sears and Others may go out of business entirely Toyota says it may not continue as a going concern – wiping out its debt and bond holders – no one is factoring in the collective sinking taking place at core economics while only a handful of technology firms pace stock price earnings ratio’s that frankly are economic insanity. The market soars against all this bad news including the failure of Italy banks – the rising move to leave the EU by France Italy and other member states – the run on the currency and bank in China – the rising debt Super Bubble globally. No one cares and stocks soar based on 80% doing zip and 20% doing a bit better than zip and none justifying today’s pricing.
- Geopolitical instability – Syria with Gas – North Korea ( their ally ) with Gas Germs and Nukes – Russia and China playing proxy wars with Iran and North Korea and the USA to bring the Western financial system down ( they trade short and make a trillion when the market breaks adding their sovereign wealth funds to the cake mix in casino capitalism ) Africa, Afghanistan, Pakistan and India, ISIS and terror in general as the next BIG ONE is just a matter of time. Markets are soaring against this super high risk?
So we have reported these data points to our readers. So you have it first.
Now you have that the data point the USA has REPORTED THE SLOWEST FIRST QUARTER GROWTH AND EXPANSION IN THREE YEARS. The Graph of growth from 2014 went up and then last summer went down and is still going down. To what? Recession? Worse?
While everyone is drinking smoking and having a party globally.
So I suggest dance until midnight.
But ask not for WHOM THE BELL WILL TOLL……
For my nest egg children ….THE BELL WILL TOLL FOR THEE.
Berny Dohrmann – Investment Banker Economist
PS: Law makers fiddle world wide while Globally Rome is burning to the ground. Dance until Midnight then………— April 29, 2017