“Crises refine life. In them, you discover what you are.” ~ Allan K. Chalmers
What strikes one immediately is that the Fed has been creating money hand over fist; one hand they create money, with the other hand they buy assets and put it on their books, all looks well until you realize this is something called monetization of debt. Paper buying more paper and in most nations this leads to hyperinflation and a currency collapse. However as the Dollar is the world reserve currency. The Fed can magically create money out of thin air and use this newly created money to pay bills and or prop up markets as is currently the case.
Look at how the total assets of the Fed have skyrocketed since 2004. You will also notice that we have nice channel formations where nothing happens for awhile and then suddenly the Fed’s assets explode. One hand starts to print while the other hand uses this newly created money to buy treasuries, etc.; it’s nothing but one big Ponzi scheme. It has not collapsed because the masses are still asleep and show no signs of waking up so it will go on for a significantly longer period. Translation, the markets will not be allowed to stay down for the count for too long. In other words, strong corrections should be viewed as buying opportunities.
Look how CNBC aired in 2009: in this video one of the members openly describes what is essentially a Ponzi scheme, but the CNBC host goes on to say, well we have a better term for that it’s called “debt monetization” but that is just a nice word for outright robbery and theft.
The market is going to trend higher in such an environment; sure it’s going to be a volatile ride up, but the markets will be spending more time to the upside than to the downside. Hence, all strong corrections/pullbacks have to be viewed through a bullish lens. Lastly, it would be prudent to allocate some money to Gold bullion; look at it as a form of insurance against an unforeseen event.
“Man is not imprisoned by habit. Great changes in him can be wrought by crisis — once that crisis can be recognized and understood.” ~ Norman Cousins
related:by Martin Armstrong: Full Blown Panic at the Fed?