FINANCIAL TSUNAMI HITS THE STOCK MARKET!

THE FINANCIAL TSUNAMI HAS HIT THE AMERICAN STOCK MARKET. THE STOCK MARKET LOST 528. 40 POINTS IN ONE DAY! This financial tsunami started around August 19 and will last until October 19, 2015. We expect a monthly drop of 500 points in September and October 500 points or more! Our goal is a 2,000 drop in points!

 The perfect storm is caused by the interaction of the following forces: (1) The Greek Financial debacle was the first shock waves; (2) The Chinese SHANGHAI  Stock market has speculative bubble or pigs on LSD and a 40% decline in values: the devaluation of the Yuan is beginning of currency and  trade wars; 

 (3) Shiller stock market valuation index showed a historical over-valuation of stocks and this may the beginning of a financial epidemic; (4) Gary Schilling's Deleveraging of the Debt and Low Growth that has hit the emerging markets-commodity based currencies and spread to low growth epidemic; (4) The end of the commodities supercycle including copper,  mining, heavy construction lead by the collapse of the oil industry to a possible $10.00 a barrel of oil;

 (5) stock market correction of  over-evaluated stocks like solar city, chevron,caterpillar,  shell,  lng, H-packard, Apple, Netflicks especially 48% of technology stocks; (6) collapse of oil industry stocks with future bankruptcies in the oil patch. (7) the coming collapse of Gold to $600 an ounce; (7) the coming liquidity crisis in Bonds and Fed is not going to raise rates in September; (8) the collapse of Macau due to low junkets credit of $1 Million per hand and 20% drop of hong dollars converted into yuan and the International Gambling stocks in Las Vegas; (8)  and lower perceived slots payouts from slot machines.

WHAT IS THE SOLUTION?  THE AMERICAN INVESTOR NEEDS TO MOVE INTO CASH AND STAY IN U.S. DENOMINATED HIGH-QUALITY INVESTMENTS. WE SELL THE AMERICAN AGRICULTURAL PRODUCTS TO CHINA AND ARE INSULATED FROM THEIR MARKET. 

 THE AMERICAN ECONOMY IS VERY STRONG BUT WILL NOT BE REFLECTED IN THE STOCK MARKET. THE AMERICAN ECONOMY IS MOVING FASTER THAN THE FINANCIAL MARKETS.  THE SMART MONEY IS LOOKING AT THE EUROPEAN AND JAPANESE STOCK MARKET AFTER THE TSUNAMI!

THE STOCK MARKET IS A ZERO SUM GAME THAT IS NOT A  MIRROR OF THE US. ECONOMY.THE IDEA IS TO KEEP FAITH IN THE UNITED STATES AND REMEMBER WE WILL ENTER INTO A RENAISSANCE FUTURE.