Something is Wrong


QUESTION: At the WEC in Orlando, you said something was wrong. Was the computer picking up this event of a crash being contrived?

JF

ANSWER: The computer clearly was picking something beginning in August 2019, which corresponded to the start of the Repo Crisis and the reaction high in the Russel 2000. Yes, I warned that there would be a crash with the turn in the Economic Confidence Model in January 2020. A divergence was clearly unfolding and has been very dramatic. The failure of the Dow and Russel 2000 to rally compared to the NASDAQ reflected a Paradigm Shift, which also took place during the Great Depression.

This is by no means a normal market, which is why the fundamental analysis makes no sense. The stock market rises while the economy declines. However, it is only selected segments of the economy, which is why there is such a disconnect between indexes and reality.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.