The 2020 Stock Market as explained by Wikipedia...
The stock market has behaved rather strangely in 2020. With a global pandemic ravaging the country and a global economy that is hanging by a thread, stocks continue to march towards new highs.
Something that doesn't really make much sense all things considered.
However, when you take into account the definition of the US Stock Market as defined by Wikipedia these days, it starts to make a lot more sense...
Check it out:
And the game goes on and on as long as central banks are willing to keep assets afloat.
Does this new definition of the stock market sound familiar?
It should, this guy created the playbook way back when, and he didn't even realize that eventually central banks would be using it...
The stock market is essentially sick and frail and the government is using steroids to prop it up.
In the short term it seems stronger than ever, but in the long run there will be significant consequences.
They won't fully be felt until the steroids (QE) is pulled away.
On the flip side, we have bitcoin mean-reverting to something it has done before major price rallies previously...
Check it out:
From that standpoint, volatility is now at the lowest levels it has been since the major parabolic rally in 2017.
The same type of setup we have seen previously before major moves up.
Would you rather own a zombie stock market at all time highs or something with the same setup it had before it rallied 20x more than 50% off its all time highs?
I know which one I would rather own...
Stay informed my friends.
Posted Using LeoFinance