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Here's a very interesting story from CNBC today.
The story is based around the ratio of financial 'wealth' to disposable income.
Turns out that this ratio is now at another all time high, and is in the territory for a natural turn lower again with another recession.
the Surge in wealth from stocks and other financial assets
may be sending a dangerous signal for the economy
Total net worth of $98.75 trillion is now 6.79 times the $14.55 trillion in disposable income,
Heres the chart:
This chart reflects the enormous bull market in stocks over the last 9 years, now the second longest in history.
And we are right on point for another recession at least.
The writer of this article, and the general public at large, fail to realize one simple fact of life, Recessions are as common as muck, as we say here in Ireland!
The writer seems to be suggesting that the FED should do everything in its diminished power to avoid a recession at all cost.
But;
there is no such thing as avoiding a recession, Just like there is no such thing as avoiding death!
Its gonna happen!
And when it does, this ratio is going to come back into line, along with the 'wealth gap' in general.
And this should not be a surprise to anyone at all, but it will be!
Down to business.
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DOW JONES INDUSTRIALS
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[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]My Bias: market topping process completing
Wave Structure: Impulsive 5 wave structure, topping in an all time high.
Long term wave count: topped in wave (5)
I have altered the short term count slightly today.
Wave 'i' pink is now shown at Mondays low.
Wave 'ii' pink is now underway.
Wave 'a' is likely complete and wave 'b' is underway.
The price should remain within a corrective trend channel higher,
And wave 'ii' pink should complete in the region of 25000 again.
this is also the high of the previous fourth wave.
Tomorrow;
Watch for wave 'ii' pink to complete in a three wave structure
This wave count leads only one way,
And that is down!
Wave 'iii' pink has the potential to seriously accelerate lower.
This week could see the beginning of the end for stock prices!
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