$SPY will plummet 60% in 1 year
With every devastation this country faces there is always a high rate of plummet within the markets. There were bull rallies within those plummets, but it still happened. BUT WHAT YOU HAVE TO REMEMBER, THE MAIN VICTIM IN THE LAST 2 DISASTERS WAS USA.
No one is coming to terms that its not just the US economy that has been shut down, BUT THE WHOLE WORLD.
You will see a faster plummet this year, within a year I expect. Again, remember, the whole world economy has been shutdown practically.
(And for anyone who is expecting a "V" rally, no where in history have we recovered so quickly, and we wont this time. "History might not repeat, but patterns do." -Felix T. The cause may be different, but the results will ultimately be the similar)
But lets focus on the US.
*More than 16 million people are unemployed, and even if we turned around today an opened the economy, those 16 million would not be hired right away. Remember, business lost revenue, and they will not higher employees while they have lost revenue. It will take months if not years to recover those employment numbers.
Retail companies were already struggling before Covid-19, and now with everyone on lock-down, the new digital era will simply erase many from our minds.
Bulls will argue that the Fed's stimulus will hold over the economy, but that thinking is simply naive, childish, and greedy. US CEOs see there business cutting employees, wages, and expecting major cash-flow issues. Confidence level amid the majority of CEOs has sharply declined to levels not seen since the Great Depression, and no one would argue that given the decline in the view about the current state of the economy.
This statement has never rang more true, "Be FEARFUL when others are GREEDY, and GREEDY when others are FEARFUL."
Let's be honest, all we are seeing here in this current rally is GREED, not HOPE.
I see this current rally hitting only increasing to around 2900, before we decline sharp again.
And the OPEC deal that was completed today wont be enough to save this Bull rally.
Like and share, feel free to comment!
No one is coming to terms that its not just the US economy that has been shut down, BUT THE WHOLE WORLD.
You will see a faster plummet this year, within a year I expect. Again, remember, the whole world economy has been shutdown practically.
(And for anyone who is expecting a "V" rally, no where in history have we recovered so quickly, and we wont this time. "History might not repeat, but patterns do." -Felix T. The cause may be different, but the results will ultimately be the similar)
But lets focus on the US.
*More than 16 million people are unemployed, and even if we turned around today an opened the economy, those 16 million would not be hired right away. Remember, business lost revenue, and they will not higher employees while they have lost revenue. It will take months if not years to recover those employment numbers.
Retail companies were already struggling before Covid-19, and now with everyone on lock-down, the new digital era will simply erase many from our minds.
Bulls will argue that the Fed's stimulus will hold over the economy, but that thinking is simply naive, childish, and greedy. US CEOs see there business cutting employees, wages, and expecting major cash-flow issues. Confidence level amid the majority of CEOs has sharply declined to levels not seen since the Great Depression, and no one would argue that given the decline in the view about the current state of the economy.
This statement has never rang more true, "Be FEARFUL when others are GREEDY, and GREEDY when others are FEARFUL."
Let's be honest, all we are seeing here in this current rally is GREED, not HOPE.
I see this current rally hitting only increasing to around 2900, before we decline sharp again.
And the OPEC deal that was completed today wont be enough to save this Bull rally.
Like and share, feel free to comment!
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