It's about Wealth Preservation 📈
Investors,
The other day a headline read, “Buyers Delight No Bears Insight” looking at this market and the plans the blue wave has in the political arena, the less bullish I remain (in the short term). Ultimately, the market will head higher and higher as the dollar continues its decline on a macro scale.
In our discord group, I had mentioned that I was growing weary of this market being that of the Energizer bunny and keep going. On January 21st I wrote, “ yes this market keeps going higher but the cracks are starting to show on this bull -- we could easily head higher for a bit longer but by Feb/March I wouldn’t be surprised to see us have scares to the downside tread carefully.”
Then again on the 25th of this month, I wrote “The VIX has given a bullish signal on the daily -- this could, of course, be negated as we progress further in time and buying could come in but something is telling me to be careful as we approach February -- quite viable for us to see some cause (trump impeachment trial) for us to have high sell pressure in the markets” The VIX was at 23-25 level and closed the week above 33, which is a gain of 37.5%.
On the 26th we saw the SPX hit a high of 3870 and then down we went with the week closing the month at 3714, that is 4% in a few days, and while we could get a bounce next week, in my humble opinion (whatever that is worth) we seem to have made a shift and capital is flowing out of stocks into safe-haven assets.
There is chatter going on about those on Reddit having caused the decline in stocks as hedge funds have to buy back their stock positions but that again in my opinion was just one catalyst. I am reminded of what my father told me and still tells me from time to time, “The numbers tell the story”. As far as the numbers are concerned equities are not seen as viable options (for now).
What is getting a lot of attention is gold, silver, and bitcoin. Talking heads on CNBC were going on about bonds and to be honest, I would be short the likes on 20+ Year Treasury Bond ETF (TLT). We are seeing a seismic shift in capital flows, where it is being deployed. Those who know me, know that I have been bullish on Bitcoin since it was in the $5,000-$7,000 level, and even with us at the time of this post sitting above $34,000 I would be buying on dips, can it dip/drop …. yes, it can but the way I see it, Bitcoin is the place for wealth preservation.