The operative word here is "functional."
Jim
Jim has an uncanny ability to anticipate moves, because he understands the forces driving capital. In other words, Jim follows the money. Notice how money is quietly moving in anticipation of additional liquidity; liquidity is also known as devaluation or ever increasing inflation.
SP 500 And Equity Diffusion Index (DI)
Stocks and gold are moving together but at different rates of appreciation. The downtrend since 2000 illustrates gold's dominance.
U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index to Gold Ratio
The Achilles’ heel of infinite liquidity has always been debt issuance. Capital knows it. It's easy to see the short-term, inverse movement of capital in the bond market. At some point in the not too distant future, price declines will not be met with capital inflows. Until then, the players whistle past the graveyard and hope no one notices.
US Treasury Bond 20YR+ (TLT) And Bond Diffusion Index (DI)
Headline: Household wealth down 23% in 2 years - Fed
The average American family's household net worth declined 23% between 2007 and 2009, the Federal Reserve said Thursday.
A rare survey of U.S. households, first performed in 2007 but repeated in 2009 in order to gauge the effects of the recession, reveals the median net worth of households fell from $125,000 in 2007 to $96,000 in 2009.
It is widely known that the 2008 financial crisis resulted in the vaporization of trillions of dollars in household wealth. But Federal Reserve officials said Thursday the new report offers a look at exactly how hard the recession hit families, and how they reacted.
The numbers paint a stark picture.
Families that owned stock saw their portfolios drop by more than a third to $12,000 from $18,500, on average. The value of primary real estate holdings decreased by an average of $18,700.
Source: money.cnn.com
0 comments:
Post a Comment