• 307 days Will The ECB Continue To Hike Rates?
  • 308 days Forbes: Aramco Remains Largest Company In The Middle East
  • 309 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 709 days Could Crypto Overtake Traditional Investment?
  • 714 days Americans Still Quitting Jobs At Record Pace
  • 716 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 719 days Is The Dollar Too Strong?
  • 719 days Big Tech Disappoints Investors on Earnings Calls
  • 720 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 722 days China Is Quietly Trying To Distance Itself From Russia
  • 722 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 726 days Crypto Investors Won Big In 2021
  • 726 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 727 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 729 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 730 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 733 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 734 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 734 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 736 days Are NFTs About To Take Over Gaming?
Gordon Long

Gordon Long

Mr. Long is a former senior group executive with IBM & Motorola, a principle in a high tech public start-up and founder of a private…

Contact Author

John Rubino

John Rubino

John Rubino edits DollarCollapse.com and has authored or co-authored five books, including The Money Bubble: What To Do Before It Pops, Clean Money: Picking Winners…

Contact Author

  1. Home
  2. Markets
  3. Other

DOW 20,000? or 5,000?? Part III

DOW 20,000? or 5,000??

22 Minutes, 31 Slides

In Part III of this series we ask John Rubino whether DOW 20,000 is directly ahead or DOW 5,000, and when?

John believes we are at a critical inflection point with two powerful forces competing. Whether Central Bank liquidity and credit expansion wins, or the realities of the economic and financial fundamentals, only time will tell us for sure.


Financial Leverage

The magnitude of financial leverage is now greater than levels during the 2000 Dot-com bubble and near pre-financial crisis highs. When calculated on a credit balance basis it is significantly worse than the 2008 Financial Crisis.

NYSE Margin Debt versus S&P500 Chart

NYSE Investor Credit and Market Chart


Signs of Zimbabwe and Venezuela Behavior are Evident

Signs of Zimbabwe and Venezuela central bank policy approaches are creeping into the developed world as pressures are applied to sustain a now tepid and failing economic recovery. After 4 years of relentless liquidity injections the options are becoming limited and the road appears to lead towards a classic von Mises crackup boom in equities.

Zimbabwe Industrial Index Chart

Caracas Stock Index Chart


Central Bank Liquidity Expansion

The answer to the riddle may possibly be found in what the Fed will ultimately be FORCED to do.

Fed Assets Holdings Chart

Also listen to Part I with Lance Roberts and Part II with Charles Hugh Smith

Check out the UnderTheLens Video Overview of
The Globalization Trap

The Globalization Trap

Released to Subscribers July 18th, 2013
Get the Full Subscriber pdf report FREE - REQUEST (Select Box for Globalization Trap)

 


Check Out Our Extensive Library of Videos
Video Library
YouTube Channel

20-40 Minute Shows with 25-50 Supporting Slides

 

Back to homepage

Leave a comment

Leave a comment