VRA Update: Happy New Year, New Twitter Survey, Recession On the Way
/Dec 31, 2015
Good Thursday morning all and a Happy New Year. Gotta say, getting New Years wishes from parts of the world where they are "already" bringing in the New Year always feels strange...especially when it's 8 am here in Sugar Land (a city so sweet, it had to be named after processed poison...I mean, sugar cane).
Next up: Please go to my twitter page (@kherriage) and take my latest survey. The question is: Will the FED manipulate the Dow +220 today; so it's positive for the year? (3 choices follow).
Market Update
I highly encourage EVERYONE to take a bit of time over the long weekend to get up to speed on my most recent VRA Updates, posted here, at this blog. Let me repeat; this is the most bearish that I have been in...well, since 2008. For those that may have forgotten, that's the year the market crashed...financial crisis and all. We also made close to 800% as the markets crashed...recovered...crashed...you get the picture.
If you're using a financial advisor that has you long this market, you may want to ask "what are you on"? As in...what meds.
Remember these most important points:
1) In the average recession, the S&P 500 loses 36%. Hmmm...what might the markets do in a GLOBAL recession/depression?? AKA, the beginning of the end of the Debt Super Cycle.
2) the last time the Dow closed negative on the year? yep...2008. Kinda interesting...don't ya think?
3) Then, there's this. The last time the Dow closed down in a "pre-election year" was....drum roll, please...1939. Let's see, what was kicking off in 1939? Yep...WWII. That's not ominous, at all...
1939-1945....six years of living hell on earth. To our global powers that be, get your sh*t together...no ones going to win in the next world war. But man oh man, do the dominos seem to be falling.
Finally, the markets opening weak today. Oil is close to its yearly low....I'm afraid that "lower for longer" is going to be the case. Dow's down 130 points as I type.
Folks, every bit of research that I have done points to one thing; 2016 will be the year of pain for bulls. The selling pressure could overwhelm even the Plunge Protection Team, or PPT (yes, it's real...it absolutely exists...but even the FED answers to a higher authority. As in, the "global cabal of bankers" that control central banks...that rule most everything financial).
We could not be positioned any better. In 2016, if you are "long" the broad markets...you will be "wrong". At least until we reach those tradeable short term bottoms....which we will trade into on the long side as well.
All my best for the New Year! 2016 does not have to be a downer...it certainly won't be with the gains that we will book here at the VRA.
Until next year...thanks again for reading....Stay Frosty!
Kip
PS: Don't forget to vote! My twitter handle: @kherriage
AND....Holy Cow! The Chicago PMI was just released....it came in at just 42.9! Last months was only 48.7 (signaling possible recession), but todays was a HUGE miss to the downside. NOT good news...now, you'll see lots and lots of "gurus" saying, "damn...are we really heading into recession?"
YEP...we are...globally...or worse.
Remember my earlier thoughts about "why the FED actually raised rates?" Folks...what if they had no choice...when debts deflate (aka no buyers), guess what MUST happen? You got it...rates spike...like BIG time. Hmmm...wonder how long it might be until the MSM begins to report this story???
BTW....this is EXACTLY when we want to own gold. I'll have my 2016 Predictions/Forecasts soon as well. Guess what one of my top picks will be...the yellow metal. After a 4 year bear mkt, THIS IS THE YEAR TO OWN GOLD...the coming bull market in PM's will take the worlds breath away. And, it will last for multiple years.
vraletter.com
