Come on, surprise us!
People need a break from the near-constant din of economic news, forecasts, predictions, data drops, innuendo, guesses and geo-political lies. The truth, or as close as one can get to it, is that corporate executives and politicians (often one and the same) aren't really ever going to open up and say exactly what they're thinking and they're even less prone to let anybody not deeply connected in on what they know and how they know it.
If there's a recession heading America's way, rest assured the common men and women who do all the hard work, raise kids, shop, cook, clean and keep a household will be the last to know. In Washington, D.C., and on New York's Wall Street, they know. They always do.
It's a fact that most trades on the major exchanges are done by computers, completely on their own. It's like 85-90%, and it's gotten to a point at which it is just not trustworthy. For instance, old-timers will tell you that back when actual humans executed most of the trades, stocks didn't go up six percent or eight percent on releasing their earnings report, no matter how good it was. That happens regularly these days.
Also, the S&P doesn't jump or drop 30 or 40 points in 10 or 15 minutes. It's physically impossible for humans to enter in that volume of trading simultaneously to cause a rise or fall like that, but, the S&P did that twice yesterday and it does so on a regular basis.
And, just in case you're wondering when was the last time the gold:silver ratio was over 100:1, as it is now (103 today), the answer is five years ago, just after the onset of the COVID scamdemic. Before that, um, never.
Are stocks overpriced? You betcha.
The Shiller PE or CAPE, is at 34.50, which is down a little from the third highest peak of 37.36, in October of last year. That happens to be higher than the peak before Black Monday in 1929 which ushered in the Great Depression (31.48). The other two higher peaks were in October 2021 (38.58, COVID strikes again) and November 1999, just before the great dot-com bust.
After the close Wednesday, Carvana (CVNA), AppLovin (APP), Cliffs (CLF), AMC (AMC) and others released first quarter earnings. Wednesday morning, Shopify (SHOP), Crocs (CROX), Yeti (YETI), ConocoPhillips (COP), Warner Brothers Discovery (WBD), Peloton (PTON) and others released theirs.
Doesn't matter, just like the Fed keeping the federal funds target rate at 4.25-4.50% yesterday. That rate could be ZERO and people woould still get mailings offering them credit cards with a $400 limit, 35% interest rates and annual fees of $96. There used to be usury laws. Not any more.
The current financial system is running on fumes. It's about to expire. The U.S. dollar has almost no purchasing power which explains why the stock market isn't about investing in strong American companies that produce dividends on a regular basis without fail. It's about making a fast buck, and the bigger and faster the better.
We're still in a bear market. Despite the recent rally, the major indices are still well off their highs. Year-to-date, the Dow is down 3.36%, S&P down 4.26%, and the NASDAQ, -8.14%. That may not sound too bad, but the second leg is coming shortly, which is nearly certain to last longer and drop deeper.
America's finances are a mess. Congress is a den of thieves. Only the connected win, and you and I are not connected.
Why do you think bitcoin is closing in on $100,000 and gold is off its highs, to say nothing of the biggest scam ever, silver at $32 an ounce? It's because the big money controls everything and all that matters are headlines on Bloomberg, CNN, CNBC and Reuters.
There is going to be hell to pay and you and I will be the ones getting the bill.
At the Close, Wednesday, May 7, 2025:
Dow: 41,113.97, +284.97 (+0.70%)
NASDAQ: 17,738.16, +48.50 (+0.27%)
S&P 500: 5,631.28, +24.37 (+0.43%)
NYSE Composite: 19,262.38, +80.22 (+0.42%)
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