Saturday, March 26, 2016

THE RISE OF INTEREST RATES AND TIMING THE UPWAVE!


WHERE ARE INTEREST RATES GOING? WHEN WILL DELEVERAGING END AND THE NEW AMERICAN PROSPERITY BEGIN? THE KEY TO UNDERSTAND THE CYCLICAL RETURN OF INFLATIONARY UPWAVE IS SCHEDULED TO RETURN IN 2018. WE HAVE NOW ENTERED INTO 37 YEAR RETURN TO HIGHER INTEREST RATES.

USING THE RESEARCH OF SIDNEY HOMER'S HISTORY OF INTEREST RATES AND LOUISE YAMADA'S TECHNICAL INDICATORS ON INTEREST RATES WE FIND THE FOLLOWING RESULTS:

(1) THE PERIOD FROM 1981- 2018 FORM THE DEFLATIONARY BOTTOM OF INTEREST RATES WITH 30 YEAR RATES AT 3.72% FOR 30 YEAR MORTGAGE AND 2.81% FOR 15 YEAR MORTGAGE.

(2) THE CYCLE INDICATOR OF 37 YEARS INTEREST BASE FORMATION HAS GIVEN A DATA BASES FOR FUTURE INTEREST RATES.  THE 1981 HIGH OF 18.00% VERSUS 2016 3.72%. WE ARE NOW TALKING ABOUT DELUSIONAL INTEREST RATES OF NEGATIVE INTEREST RATES.

(3). THE COMING OF 5.23% INTEREST RATES WILL SIGNAL THE END OF DEFLATIONARY RATES AND OF LARGE SCALE RACE TO 19% INTEREST RATES. WE CAN LOOK AT 2018(3.0 %)- 2O53 (19%). 

(4) THESE LOW RATES BENEFIT THE MILLENNIAL GENERATION FOR 15 YEARS PERIOD.  THE REAL ESTATE MARKET WILL BOOM TO NEW HIGHS, STOCK MARKET WILL CRASH, COMMODITIES WILL BEGIN A HISTORIC RISE FOR 15 YEARS, BONDS WILL CRASH AND EMERGING MARKETS WILL EVENTUALLY RISE. THE SAVERS WILL START PROFITING FROM HIGHER INTEREST RATES AND CD MARKET WILL RETURN.

(5) THE DELEVERAGING WILL COME TO END AN END 2018 AND START HEALTHY CORPORATE GROWTH AND MASSIVE TRILLION DOLLAR GOVERNMENT INFRASTRUCTURE SPENDING. THE RISING WAGES AND MINIMUM WAGE EXPANSION WILL START WAGE COST INFLATIONARY CYCLE.

(6) THE BOTTOM OF THE DEFLATIONARY CYCLE OF 2017-2020 WILL CONTINUE THE LOW DEFLATIONARY CYCLE OF DEVELEVERAGING, COLLAPSING COMMODITIES, BOND WORSHIP, REAL ESTATE DOLDRUMS OF HOUSING INVENTORIES, BANK PARALYSIS FOR CONSUMER MARKETS, EMERGING MARKETS COLLAPSE, AND GOLD COLLAPSE.

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