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December 16, 2016 | Dow Index ‘UP’ 8% in Five Weeks! Amazing!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

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The biggest surge in this Index in the history of any U.S. presidential election just occurred. The biggest surge prior to this was back in 1996 after the election of Bill Clinton. As I write this missive the Dow is at 19,852. So what does this mean going forward? Bullish sentiment is now so high that many expect a NEW bull market with a Dow of 22,000 in a couple of months. The Donald will increase spending by $trillions on infrastructure, lower taxes, and increased personal incomes for everyone.

Our DEBT and deficits are now at records (again) but none of this matters as the Donald and his proxies will keep the spending growing (forever). Look here for the continuing trend now in motion: America will be RICH again and our wealth will create prosperity for everyone…under the new policies of the Donald. Is this reality? Can cycles be abolished now that our Central Banks control most indices with their ‘algorithms’ and ‘source codes’? Money from heaven can flow to everyone within our global cyber markets. What a utopia for the gullible citizens who lack discernment!

Mortgage rates have increased by 1%+ in just one month and affordability has decreased for the greater real estate marketplace. Yet the sentiment is that ‘values’ can increase even with affordability becoming more onerous. It’s the TRUMP effect! Again this is lack of judgment and discernment IMO. In reality, this trend means that ‘values’ will start their descent much like they did after the 2008 crisis. The logic of our real estate pundits will be disproven in just a few months. As ‘values’ decrease and the real estate Bubble is exposed then our markets will discover that a new down cycle has begun.

As real estate goes so goes the entire BOOM markets which now seem invincible to a correction. I can now discern that a huge market ‘correction’ is coming to the American markets and then the world markets. The correction will likely start after January 20, 2017, when more sober heads recognize what is happening. The word ‘sober’ means that the alcoholic ‘high’ which our markets have experienced for years will become reflective of reality. Yes, it is soon time to get ‘sober’ and think differently!

The Central Bank ‘algorithms’ will cease to be effective when the masses of traders (globally) recognize that real events have changed. Selling our markets via HFT computer strategies and algorithms will overwhelm the Central Bank’s computers and their trading strategies. What few recognize is that our past ‘HIGH’ has occurred because our Central Banks have used their vast trading computers to PUMP up our algorithmic markets with their ‘source codes’ and software manipulations. Central Banks were not supposed to trade our markets to artificially PUMP up the indices.

The change in trend comes when there is a general recognition that real events have changed permanently. This is likely to happen AFTER January 20, 2017. I sense the trend happening now, however, to a small degree. The increase in the 10 year Treasury bond from 1.71% to 2.61% in just one month means that our real estate markets will start their descent in a few months. It’s all CAUSE and EFFECT and it will happen unless our Central Banks change their policies immediately. Get ready to ‘sober’ up and face a changed market in a few months! That is my message for today! I am:

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December 16th, 2016

Posted In: Kingdom Economics

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