Here are my skwealthacademy predictions for global stock markets for the months and years ahead.
Below, you will find charts for the stock market indexes of major world economies, from top to bottom, of the United States, China, the United Kingdom and Japan. By far and away, regarding any major stock market index in the world, the US S&P 500 has been the one with the largest yields since the covid lockdowns that started at the end of 2019 in China. A complete disconnect between the destruction of the US economy for the common Joe and Jane in America and US stock market performance has precipitated. Does this mean that the Bank of Japan, Bank of England and the People’s Bank of China have not been intervening in their stock markets to artificially prop up their markets to make the wealthiest of the wealthy in their nations wealthier while only the US Central Bank (Federal Reserve) has been doing so? Of course not.
In fact, though all circumstantial evidence points to US Central Bankers heavily intervening in markets, including purchasing massive amounts of S&P 500 index futures over and over again before market open in the aftermath of the 2008 global financial crisis, all Central Bankers have steadfastly maintained that they never intervene in US stock markets. Contrary to US Central Bank denials, bankers employed by the Bank of Japan have admitted, on record, their manipulation of Japanese stock markets for decades, even admitting directly buying Japanese stocks and bonds to prevent certain pillars of the stock market from crashing in price. The Bank of Japan bankers bought so many Japanese stocks, that by Q1 2019, they became the top holders of all Japanese stocks. Despite this, if we look at the bottom chart that represents the Nikkei 225, we now see it forming a possible break to the downside that could spell disaster in the months ahead.
Of course, if Central Bankers around the world had not massively intervened in stock markets to artificially engineer the global stock market recovery in 2008, we never would have observed any recovery in any of the world’s major stock markets, and instead, would have just seen stock markets continue to plunge for years after 2008. The Shanghai Stock Exchange index also appears that it is rapidly approaching a turning point as well and if I had to guess which way the index would turn as it reaches a major crossroads, I would guess that it is going to turn down instead of up.
If we look at the major stock market indexes for the UK, they look to be much less volatile than those of Japan and China, with the winner coming out on top thus far, the US S&P 500 index. I’ve always stated that the US stock market indexes can be used as a proxy for other major global stock market indexes and that whatever action happens in the US stock market index, one can expect even more magnified reactions in the same direction in other global stock market indexes. So the fact that the US S&P 500 appears to be turning downward at the current time does not bode well for other major world stock market indexes. However, the key word is “appears”. Not enough of a significant downward turn has manifested as of yet in the US S&P 500 index to confidently state that this is the start of a massive breakdown in US stock markets. I need to see a much more significant downturn than the one that has manifested to make such a bold declaration.
Even more unsettling, if such a downward spiral manifests in the US stock market, is the fact that the monetary economics dictated by US Central Banker policy would almost predict an upward meltdown of US stock markets, versus a downward meltdown, comparable to the meltup of the Zimbabwe Industrial Index in recent years that has rendered once-in-a lifetime stock market yields worthless as Zimbabwe dollar hyperinflation has outpaced insane Zimbabwe stock market yields.
In recent months, I have become much more open to the possibility of US dollar hyperinflation than in years past, which would yield a US S&P 500 chart similar to the one above. However, in marinating on how such a possible event would unfold, I’ve become convinced that a crash could proceed a melt-up. If you are interested in hearing further commentary in the future about this topic and of the timeline for a crash that may precede a meltup, along with weekly commentary about other assets that are critical to own to protect against the insanity of a price distorted world created by insane Central Bankers, then please join my skwealthacademy patreon channel. All benefits for different membership levels are described in detail in the aforementioned link.
