Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
This Dividend Aristocrat Is Leading the 5G Revolution - 22nd July 19
What the World Doesn’t Need Now is Lower Interest Rates - 22nd July 19
My Biggest 'Fear' For Silver - 22nd July 19
Reasons to Buy Pre-Owned Luxury Car from a Certified Dealer - 22nd July 19
Stock Market Increasing Technical Weakness - 22nd July 19
What Could The Next Gold Rally Look Like? - 22nd July 19
Stock Markets Setting Up For A Volatility Explosion – Are You Ready? - 22nd July 19
Anatomy of an Impulse Move in Gold and Silver Precious Metals - 22nd July 19
What you Really need to Know about the Stock Market - 22nd July 19
Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen - 21st July 19
Silver to Continue Lagging Gold, Will Struggle to Overcome $17 - 21st July 19
What’s With all the Weird Weather?  - 21st July 19
Halifax Stopping Customers Withdrawing Funds Online - UK Brexit Banking Crisis Starting? - 21st July 19
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

The Trump Stock Market Trap May Be Triggered

Stock-Markets / Stock Markets 2019 Jun 29, 2019 - 03:47 PM GMT

By: Barry_M_Ferguson

Stock-Markets

From the Christian Bible, John 8:32 - Jesus speaking: “If you abide in My word, you are My disciples indeed. And you shall know the truth, and the truth shall make you free.”

So, we have it on pretty good authority, Jesus Christ, that freedom is spawned from truth. If humans want to be free, they must therefore seek the truth.

The current day media, news - sports - financial, has gone full bore communist state mouth piece. They only report what they want us to believe. Deceivers push falsehoods to enhance their own power with the hope of enslaving the masses. The serpent doesn’t use an apple today. The serpent uses the microphone, politicians, entertainers, complete human ignorance, electronic media, and social media for deceit.

This is a truth we know. Low taxes plus low government regulation results in robust economies. Yet, no government on Earth facilitates this truth. In fact, they are the opposite and therefore in a spiritual sense, evil.


President Trump should be credited with moving in this direction - lower taxes and lower regulation. To be sure, much more needs to be done. As the President fights this battle, he has been vehemently opposed by the dark side who are committed to doing all in their power to inhibit President Trump and ultimately destroy him. How? Lies, lies, and more lies. Every dirty trick and every imaginable illegal tactic has been thrown at President Trump. Yet, he still stands. This leads us to wonder what is left for the left to throw at President Trump? No pun intended but there is still a trump card left to be played - the stock market.

Look at the message from financial media today.

We are told the world is turning its collective back on America. As such, we are told that the world is dumping the US dollar. All that selling should be pushing the value of the greenback lower. What does Chart 1 below show with regard to the value of the dollar over the past year?

3-year USD


Chart 1 courtesy StockCharts.com

Obviously somebody is buying the US dollar over the past year. If we bring in a 20-year chart of the dollar, we see that the 16 dreadful years of Bush-Oma eroded the dollars value by some 33%. That means our money bought less and less over time. Citizens continue to lose economic ground. At this writing, the dollar has lost some 5% or so during President Trump’s tenure. 

We are being told that the declining dollar will result in higher prices for gold. Check the Chart 2 below for gold prices.

3-year GOLD

Chart 2 courtesy StockCharts.com

Well, again, what we are ‘told’ is a lie. Gold has gone nowhere in terms of price this year. Only until a few weeks ago did it push higher. However, investors should not get excited.  As I have argued, central bankers will never allow gold and silver to rise and thus become a monetary competitor for the bankers’ fiat paper. I can’t emphasize this enough. Gold will never rise as long as central bankers have power.

What about US Treasury paper? We are ‘told’ that the world is turning against America by dumping the US Treasury Bond. Really? Well, again, somebody is buying bonds as if they were MAGA caps. Check the Chart 3 below.

3-year UST (10-year US Treasury Bond price)

Chart 3 courtesy StockCharts.com

So again, the financial media tells us the US dollar is being sold off. The charts indicate otherwise.

The financial media tells us that gold should be appreciating. The charts indicate otherwise.

The financial media tells us that US Treasuries are being dumped. The charts indicate otherwise.

Many in the media tell us that the economy really isn’t that good. These people seem confused.

The political media (sorry, oxymoron) tell us that any economic and financial gains are due solely to the previous administration policies (excessive taxation, excessive  regulation, and the militarization of government agencies). I have included a chart below of the Dow Jones Industrials for the last 20 years. Giving a nod to Rep. Omar, she is right about one thing. Bush and Obama were twins so I refer to their ruinous reign as the ‘Bush-Ama’ period. We can see from the chart that stock prices have maintained an upward trajectory since the Federal Reserve Bank accepted the sovereign US surrender from President Bush in August 2007 (QE, TARP, etc). Since Mr. Bush surrendered control of the nation and its economy to the central bankers, they have done a wonderful job of goosing stock prices higher and higher with free money regardless of true economic conditions. As the greatest leader to ever walk the face of the Earth, President Andrew Jackson, wrote in his 1832 veto and extermination of the central bank, the policy of allowing central bankers to control money would make the rich richer, the poor poorer, and inequality would reign. If only humans were smart enough to listen to real genius! Check out the Chart 4.
 

20-year DJIA monthly


Chart 4 courtesy StockCharts.com

What’s the problem? Remember Candidate Trump referring to the stock market as ‘one big fat bubble’? Arguably President Trump’s enacted policies (tax cut, fewer regulations on business, America first, etc.) have pumped air into the longest bull market in history. And, it is a truth that low taxes and low government regulation lead to better economies. If only politicians could understand that the inverse is also true. 

So, are we living in truth and freedom or lies and enslavement?

Surely everyone acknowledges the stock price inflation of record corporate buybacks, sovereign nations buying stocks, and of course, many instances like we saw on Christmas Eve, 2018 with the Plunge Protection Team meeting with banksters to coordinate yet another Fed intervention rally. Yes, it is all contrived and manipulated but there could be something else brewing. President Trump has taken credit for the strong economy and strong stock market. He may have triggered the ‘Trump trap’.

Remember when the vile and corrupt Senator Maxine Waters was in the middle of her ‘Impeach 45’ rant when she said, “If Stormy don’t get him, Mueller will.” Well, Stormy failed. Serial framer and completely corrupt Mueller failed as well. So, it seems to me that all the democrats have left is the economy and its barometer, the hallowed Dow Jones Industrial stock average.

Let’s be honest here. We are not talking about supposed enemies of the US like Iran, Russia or China. We are talking about democrats and the shadow government leftists who hate America. They are willing to do anything to destroy President Trump and his agenda to ‘Make America Great Again’. That includes purposefully tanking the stock market and the economy. But how will they do so?

The next weapon the Democrats will hurl at President Trump is the Federal Reserve Bank. This has been the biggest failure of the Trump presidency. He has not destroyed the central bank as I have promised to do in the first five minutes of my presidency if elected. The serpent is still alive.

We are all witness to President Trump’s criticism of Fed Chief Powell. President Obama was supported by the Fed’s zero percent interest rates. President Trump, however, has been throttled by a Fed intent on raising interest rates.

The Federal Reserve is of course evil and corrupt to the core. Notice, many pundits including the biggest retail associations are saying that President Trump’s China tariffs will cost consumers millions. That sounds like tariffs equal inflation. If so, should the Fed be lowering interest rates?

The Fed’s Powell recently said the following: “As President of a Federal Reserve Bank, I am focused on two vital economic goals: maximum employment and stable prices for the U.S. economy.” I will give readers a week or two to stop laughing at this outlandishly ridiculously mendacious statement from one of the biggest liars to ever walk the face of the Earth.

Read carefully. Truth follows. The Federal Reserve Bank is concerned with one thing and one thing only - the Dow Jones Industrial Average. Period. Anyone that believes anything to the contrary is a complete fool exemplifying an ignorance level unmatched in human history.

One, the Fed is committed to instigating at least 2% inflation every year. That means that every generation of Americans losses half of their monetary purchasing power and affluence over three decades of such perverse policy. Truth is freedom. Lies are enslavement.

Two, at the end of 2018, the Fed opined that it would need to raise the fed funds rate some three or four times in 2019 to battle ‘inflationary pressures and ensure price stability’. Give me a break! The Dow had enjoyed two years of steadily rising prices due to President Trump’s influence. Stock prices were already in decline throughout the fourth quarter of 2018 but really accelerated the decline in December. Of course, and again ad nauseam, the Fed’s only goal is to support the Dow. The Fed called a quick meeting on Christmas Eve with their banker friends who make tons of profit from such insider trader meetings as this, and immediately arrested the decline in stock prices (the Fed will never again allow for a bear market or a drop of 20% from previous highs) with a furious stock buying binge. That was buttressed by an immediate reversal in Fed policy so all future rate increases were cancelled. Here we are today and everyone, and I mean everyone, is expected a rate cut very soon. What changed the Fed’s mind? Stock prices. End of story.

Okay, as any intelligent person knows, the Fed sets stock prices every single day. My own personal evidence of Fed pooh in price charts are those fabulous 100+ point rallies that snap the stock indices higher in less than an hour. We can see these interventions very easily as they look like needles going straight up. We no longer see bottoms that look like a ‘V’ or God forbid, a ‘U’. Now, what might the Fed do as we move toward the election year of 2020?

Remember, the Fed is not interested in truth. Truth leads to freedom and freedom doesn’t exist as long as central banksters run our world.

My guess is the left will weaponize the Fed and they will allow the stock indices to tank and thereby destroy whatever life the economy has in it. Since President Trump took the credit for a good economy and a robust stock market, he will be blamed for the ensuing bear market and recession economy. Make no mistake. The Fed and the left are evil enough and hateful enough to burn all of our houses down just to show up President Trump. We should all be vigilant about the timing. I still believe the Fed would like to push the Dow up to 30k before they pull the plug. How low might they drop the Dow? The God of the left is Obama and the Dow was around the 18k mark when he vacated the White House. I don’t think they will let the Dow go below that mark.   

One must know one’s enemies. It seems that President Trump has taken the bait. 

Barry M. Ferguson, RFC
President, BMF Investments, Inc.
Primary Tel: 704.563.2960
Other Tel: 866.264.4980
Industry: Investment Advisory
barry@bmfinvest.com
www.bmfinvest.com
www.bmfinvest.blogspot.com

Barry M. Ferguson, RFC is President and founder of BMF Investments, Inc. - a fee-based Investment Advisor in Charlotte, NC. He manages several different portfolios that are designed to be market driven and actively managed. Barry shares his unique perspective through his irreverent and very popular newsletter, Barry’s Bulls, authored the book, Navigating the Mind Fields of Investing Money, lectures on investing, and contributes investment articles to various professional publications. He is a member of the International Association of Registered Financial Consultants, the International Speakers Network, and was presented with the prestigious Cato Award for Distinguished Journalism in the Field of Financial Services in 2009.

© 2019 Copyright BMF Investments, Inc. - All Rights Reserved

Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. 


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules