..Jim Rickards has just penned his opinion about a forthcoming -50% market crash in the aftermath of what he predicts to be a chaotic and potentially violent US Presidential election outcome.
..we're just a month away from that and on the brink of a major Middle East confrontation.
..meanwhile, markets are completely apathetic to prevailing risk concerns, because it has shown time and time again capable of climbing a wall of worries.
..furthermore, the Chinese bazooka stimulus gave the perception that deflationary forces are being addressed in China with hope for a boost to the global economy.
..it has been my opinion for weeks now that the greater the defiance of the US market to tolerate a minor correction (of magnitude 5-10%) that it is long due for, the greater the risk that a larger correction building up in the near future. A minor downdraft would allow excessive speculation and long positions to wind down to take the heat off the market, that would be in better position to prolong the bull rally. But instead, what we're observing is a complete apathy towards risks, an all-in long FOMO coupled with presumably a US PPT that comes in to support the market when it becomes susceptible to profit taking.
..the market will most certainly suck in more market participants making FOMO buying and completely blindside them once again. IMO these are final periods to sell into strength, with the view of letting others take the risk to make the final 10%, because in our earnest to make the last 10%, we could end up losing far more, as due to my comments in the previous paragraph, I would expect the speed of the next downdraft to be fast (pronounced 'fest' in Americano speak, as fest as the hypersonic missile, lol).
Beware the crowded market everywhere- US, China. They were not set up to brace for negative events.
