Until Federal Reserve Exits the Market, Everything is Going to Be Upside Down.
Bad economic news in retail sales for the last 3 months is a sign the economy may be slowing down according to official estimates. Of course we on this blog know the more realistic view on the economy, but even by official standards, retail sales are reflecting a more accurate look at the real economy.
Gregory Mannarino has said the market’s true value is not being reflected in today’s high prices. This is largely due to major institutions and even private entities buying up bonds in the bonds market to keep the entire stock and equities market propped up for the foreseeable future.
Mannarino does not believe the market is going to crash any time soon, mainly based on the heavy amount of manipulation by the Federal Reserve and other central banking institutions around the world. Considering the fact that most of the major world economies have large amounts of debt, it seems to be that this economic illusion could carry on indefinitely- until it doesn’t.
The market is not likely to dive 6,000 points in the near future, because Gregory Mannarino believes that this managed market will remain artificially high due to mid term elections coming up in 2018. There is a lot at stake that he does not believe will allow for a natural market correction. This is also why it’s a safe bet to invest in a Gold IRA today.
Considering the game plan of the Federal Reserve went from 0% interest rates to 3 rounds of Quantitative Easing, loosening the rules on company stock share buybacks, and a military budget at nearly a Trillion USD, it looks like the status quo may be reluctant to allow any type of economic reset to occur in the next year, according to Mannarino.
Time will tell. This is why it’s so important to be prepared today. Will you gamble your retirement away on a stock market which is likely to correct over historic record-breaking all-time highs in the near future? Or will you trust in the people running your government and economy, media and banking systems to their own profits- often at the expense of the average American?
Learn from 2008