Wild Wall Street swings signal period of increased danger to investors

Started by Mountainshield, October 24, 2014, 12:10:05 AM

Previous topic - Next topic

Mountainshield

QuoteWild Wall Street swings signal period of increased danger to investors

Wall Street pundits were thrilled on Thursday when the Dow Jones Industrial Average surged 216 points, over 200 points for the third time in a week, after falling a similar amount in the preceding 6 days. These wild swings are also occurring for bond prices, oil prices and VIX (volatility index) prices. As I've been explaining, these wild swings signal a very dangerous time when a crash might be approaching. This would be the case if the amplitude of the swings continues to increase in the next few days, though not necessarily if the swings settle down. The S&P 500 price/earnings ratio (stock valuations) is at historic highs, indicating that the stock market is in a large bubble, and Generational Dynamics predicts that we're headed for a global financial panic and selloff. Reuters - John Xenakis
http://www.generationaldynamics.com/pg/ww2010.weblog.htm

The last big recession made sure FDR got elected because the narrative was Republicans doesn't care about you, vote for democrats and we will give you welfare, the subsequent federal policies made sure the recession became a depression and thereby ensured Democrat control. What implications will a new financial crisis have?

Is it the only way Democrats can get victory in 2016? People vote out economic self interest, voting for 100% certain welfare benefits is more strategical than voting for a uncertain potential new job.