hi guys, I just want to share some info with you.
I was talking to this investment banker buddy of mine who lives in the US, an older guy but who still works in finance, I was telling him how I want to buy some Inverse ETF's of the DOW and S&P500 to make money shorting the DOW now.
He said DONT DO IT.
I said but everyone thinks the DOW and S&P500 have topped out here, there is no way they are going to make new highs especially as % rates will rise in DEC and 3x in 2019, I said that will definitely crash the markets wont it?
This is what he said, take it any way you want guys, but this guy I very astute and he has made good calls in the past.
He said IF the FED raise rates in dec and x3 in 2019, YES the dow will have a correction of about 10-15%, but he said, if things start looking very bad on the markets the fed will step in again and do a QE 4,5,6 if need be to keep the Ponzi scheme going.
He said the FED cannot let the markets collapse. those are his words.
He told me to expect a DOW of 50,000 before any major crash, this guys knows it all, he knows about peter Schiff and mark faber and Gerald celente, he knows that US debt in the last 20yrs has gone up more than from 1790 to 1990, he knows that company directors (insiders) are selling stocks whilst at the same time doing buybacks with the company money.
But he said, if you have $2trillion to park, where are you going to put it? he said the US$, but I said the US$ in confete, he said yes, but what other option is there, the gold market is too small to put trillions into, he said the USA will be the lAST to collapse, he said EUROPE and CHINA will crash 1st and the US will be hit the last, as people still flock to the US$ until the very end.
he said to SHORT THE DOWN when its 50,000 after the fed pumps it up even more, and he said gold will go to US$5,000, that was his view.
He said, we will get another great depression style crash and that will be the time to buy blue chips in the CENTS, these are his words, he said you'll be able to buy Johnson and Johnson (I think that's his fav US blue chip because he always uses that as an example) in the CENTS, now J&J is what $150/share?
So he said, theres no need to be silly and short the US markets yet, but when the fed do more QE in 2019 or 2020 or 2021 to keep the bubble inflated that will be the time to short stocks.
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