Hi reader, hope your all well.
Markets are at all time highs once again and how good is it.
US inflation is sitting at 6.8 (try 14.1%) and yet all is running smooth.
Google came out on Friday and said that it has no intention of raising wages due to inflation.
That's your first sign of whats coming but for now lets just ignore it and get into the Christmas spirit.
Stock should try to push up or at least try to hold current levels until the first or second week of January.
After that the shit will hit the fan and all hell can and will break loose, this is what my work shows.
With Venus moving into retrograde from Dec 19th until January 29th strain in finances is going to hit many in the face.
A correction is possible and with a thin market it could run aggressively, so be aware of it.
For those of you who believe in the crypto blow off in December that's great and I hope it occurs but I don't see how.
There are far to many negative aspects attacking the crypto coins so I doubt this will occur.
As I always say hope is for people and when money is involved people seriously grasp on hope.
Professional just use it to there advantage.
The divorce rates in Melbourne in particular is running at record levels and for those of you who are going through tough times your not alone so please try to find a happy medium.
We are on track as i predicted that we will see rate hikes in 2022 not 2024 as the central banks had forecasted, but they will make mistakes which will kill there economies, its a disaster which they are fully aware of but have no choice as inflation is setting in.
Yes while some will question it we have become a society of financial gamblers, who expect others to do the dirty work.
Well this will come home to roost in 2022 and 2023, the idea that cash is trash will not be the case.
It will be assets that are trash and you will be able to buy assets on the cheap, question is will you have the cash for it. Most are in debt to there eyeballs, a survey was published on Thursday which stated that only 5% of Australians are debt free.
95% have some sort of debt whether its a mortgage loan or personal loan or credit card of over $25k.
So taking advantage of the potential will be limited to the those who know whats going on as opposed to that who want to build wealth.
On another front which raised my eyebrow was the stress test that came out of the New Zealand central bank.
Of the 10 banks, 5 of the major banks had major issue and strain on there finances.
Of these 5 banks 4 are Australian banks, so it seriously says something don't you think!
We have never really know what these stress tests comprise of but for the first time we go a look in.
My question to you all is, is this what is being planned?
10% unemployment, 58% drop is the property market and 54% drop in stock market value.
drought, zero exports and negative growth for 2 quarters.
No government support, and a 6.75% interest rate.
I would love to know if this is the stress test that the Fed did also.
The five major banks all had major issues with there lending books.
They all said that they would encourage deposits yet they would cut lending to zero.For those of you who want to read the total outcomes of the stress test the New Zealand central bank has it on there website.
Australia has never had a stress test on its bank and I can see why, if any of these facts became real Australian banks would seriously be in danger of bankruptcy.
