The Secret To The Stock Market: Just Buy Tech Companies That Are Losing Money And Watch Profits Rain From The Sky

For those that can’t detect sarcasm, I am not actually sharing “investment advice” in this article.  Rather, I am pointing out how absurd our financial markets have become at this point.  While the real economy is mired in the worst economic downturn since the Great Depression of the 1930s, the stock market just keeps soaring to record high after record high.  If the underlying profits that these corporations were generating actually justified the extremely high stock prices that we have been witnessing, then I wouldn’t have anything to complain about.  Sadly, the truth is that many of the companies that are seeing their stocks soar into the stratosphere are not making any money at all.

I know that this may sound bizarre to many of you that do not follow the markets on a regular basis, but this is what is actually happening.

In fact, Goldman Sachs actually has something called a “Non-Profitable Technology Index”, and it has been rising at an exponential rate during this pandemic…

Of course in order to be a part of the “non-profitable technology index” you have got to be losing money.

So as you can see, if you want to make big money in the stock market just buy tech companies that are losing boatloads of money and wait for the profits to rain from the sky.

At this point, the stock market has become such a rigged game that literally anyone can succeed.  Just ask this guy

“I see a stock going up and I buy it.”

Wow.

That is brilliant.

And that will work as long as stocks only keep going one way.

When the COVID pandemic started hitting the U.S. really hard, the powers that be decided that they were going to do whatever it took to support the stock market.

The Federal Reserve literally poured trillions of dollars into the financial system, and as a result the ratio of the Fed’s balance sheet to U.S. GDP is at an all-time record high.

Our politicians in Washington kept passing stimulus package after stimulus package, and as a result the ratio of the U.S. budget deficit to U.S. GDP is at an all-time record high.

We are literally destroying our currency and we have placed ourselves on the hyperinflation highway, but very few of our leaders in Washington seem too concerned about what is happening.

So the stock market bubble will continue to expand and people will continue to mindlessly make money until one day a big enough trigger event comes along to burst the bubble once and for all.

And without a doubt, what we are in right now is an epic bubble.  According to CNBC, the trailing price to earnings ratio of the median stock “has never been higher”…

Right now, it’s hard to deny that on the whole, stocks are rich relative to past earnings and forecast earnings. The trailing price/earnings ratio of the median U.S. stock, tracked by Ned Davis Research, has never been higher.

Meanwhile, the real economy continues to deteriorate all around us.

Earlier today, we learned that chocolate giant Godiva will be closing every single one of their stores in North America…

It was sweet while it lasted.

Belgian chocolatier Godiva will sell or close all 128 of its North American shops within the next few months, the company said this week.

Out on the west coast, many small businesses have decided to “go underground” in a desperate attempt to survive

Los Angeles City Attorney Mike Feuer has charged dozens of businesses with violations, including car washes, tobacco shops, beauty supply stores, massage parlors, nail salons, pet groomers, and an Egyptian artifact store.

The owners of one Bay area massage business made the decision to reopen underground after 93 days on no income, telling Cal Matters that it came down to either paying “the fine or we can’t pay our mortgage.”

But why should anyone even try to run a small business at this point?

After all, can’t we all make enormous profits just by buying the stocks of tech companies that are losing millions of dollars every year?

Not even during the “dotcom boom” did we ever witness euphoria like this.

The more absurd the business model, the more investors seem to like it.

And investors really seem to like it when a company is endlessly hemorrhaging money with seemingly no hope of ever becoming profitable.

For now, investing like an idiot works because everyone is winning.

Of course someday the party will come to a very abrupt end.

But for now the madness continues, and most investors definitely do not want to be awakened from their stupor.

At the same time, the World Economic Forum is preparing the rest of us for a dismal economic future in which we eat worms, live in “tiny houses”, and are forced to carefully follow the new “green rules” for a sustainable environment.

The standard of living is going down for most of us, but thanks to rising stock prices the rich are now richer than ever.

This rapidly expanding gap between the wealthy and the poor is creating an enormous amount of tension in our society, and it is just a matter of time before all of that tension explodes in frightening and unpredictable ways.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The Worse Things Get, The More The Stock Market Likes It

No matter how bad things become, stock prices just keep going up and up and up.  In 2020, we experienced the worst public health crisis in 100 years, the U.S. economy was plunged into the worst economic downturn since the Great Depression of the 1930s, Americans filed more than 70 million claims for unemployment benefits, and civil unrest raged in major cities all across the United States.  Meanwhile, we witnessed the greatest stock market rally in American history.  No matter what happened, nothing could seem to dampen the wild euphoria on Wall Street.

To start 2021, many believed that we had finally reached a point when bad news would finally start driving stock prices down.  Yesterday, I wrote about how some experts were warning that stock prices could fall substantially if Democrats gained control of the U.S. Senate after the runoff elections in Georgia.  Well, in the short-term those experts were proven wrong.  In fact, the Dow Jones Industrial Average actually rose 437 points on Wednesday.

Of course the bigger news on Wednesday was the utter chaos that we witnessed at the U.S. Capitol in Washington.  Doors and windows were smashed, members of Congress had to be evacuated, and protesters freely roamed through the halls and offices.  You would think that something like that would definitely send stock prices plunging, but instead the Dow ended the day up 437 points.

Even though we have just come through the worst year in recent memory, and even though our system of government is in disarray, stock prices hit an all-time record high on Wednesday.

One explanation for this is that investors consider the chaos in Washington to just be “temporary”…

“Although the takeover of the Capitol is shocking, it’s widely perceived to be temporary and contained in scope, at least in the immediate term,” says Yung-Yu Ma, chief investment strategist and managing director at BMO Wealth Management.

“This is going to be dealt with pretty swiftly and won’t have lasting repercussions in terms of disruptions to the government,” Ma added. “It won’t change the trajectory of a Biden presidency in the coming weeks.”

We shall see what happens, but a lot of people out there are not so optimistic that the governmental shaking that we have been witnessing will pass so easily.

Moving forward, investors appear to be salivating at the prospect that a Biden administration will mean that more stimulus money is on the way

“I think there’s an expectation … that there’s going to be a lot more spending,” Jason Trennert, chairman of Strategas, said on CNBC’s “Squawk Box” on Wednesday. “If the Democrats were to pick up two seats, there’s no question in my mind that later this year there would be a sense that more spending is needed.”

Goldman Sachs expects another big stimulus package to the tune of $600 billion in the near term if Democrats prevail and take the Senate.

Why not make it $600 trillion?

Every dollar that we borrow and spend just makes our long-term problems even worse, and so why not get the process over with?

As I discussed the other day, the trillions of dollars that have already been pumped into our system over the past 12 months by the Federal Reserve and by our politicians in Washington have fundamentally changed the trajectory of our future.  The money supply is rising at an exponential rate, and we are now on a hyperinflationary path.

Sadly, under a Biden administration there will be no going back.  Instead, the accelerator will be pushed even further toward the floor.

But it isn’t just our financial system that is in grave danger.

Our system of government is also in grave danger as well.

Our culture is in grave danger too.

In fact, our entire society is in grave danger.

There is no future for our country if we stay on the path that we are currently on.  We are engaging in self-destructive behavior in thousands of different ways, and even though there have been endless warnings, we are so addicted to our self-destructive behavior that we just can’t help ourselves.

At this point, it is difficult to imagine how anyone can possibly be optimistic about the future of our nation.

But apparently stock market investors disagree, because they just keep pushing stock prices higher and higher.

It shall be very interesting to watch how high they can go before the system finally implodes.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Experts Are Warning That The Stock Market Could Fall Dramatically If Democrats Take Control Of The Senate

The results from Georgia are going to have enormous implications for the financial markets.  If Democrats win both of the seats that are up for grabs, that will give them control of the Senate, the House of Representatives and the White House.  For the first time since the first two years of Barack Obama’s presidency, the Democrats would have an opportunity to advance their agenda without compromising with the Republicans, and that is extremely frightening for investors.  The Democrats have made it very clear that they intend to raise taxes on big corporations and the ultra-wealthy, and that wouldn’t be good for the stock market bubble at all.

As I write this article, the two races are still too close to call, and we probably won’t know the final results for a while.

But experts are already warning that we could see a huge stock market decline if both Democratic candidates win.  For example, former Trump adviser Steve Moore is warning that the Dow could fall by 1,000 points

Former Trump senior economic adviser Steve Moore argued on Tuesday, the day voters in Georgia head to the polls for the Senate runoff elections, that a Democratic sweep could lead to the Dow Jones Industrial Average dropping by 1,000 points.

Moore says that he came to this conclusion by examining data from the last 60 years

“I looked at the evidence of what’s happened in the last 60 years or so with respect to the stock market in terms of three different scenarios: One is Republicans control everything in Washington, the second scenario being Democrats control everything in Washington, the third being divided control of power and in general the best scenario for economic growth has been when you have divided power,” Moore said.

“The worst scenario over the last 50 or 60 years is when Democrats have control over all the levers of power so I would think the historical record is pretty clear on this, that a Democrat sweep tonight would be bad for markets,” he continued.

Oppenheimer’s John Stoltzfus is even more pessimistic.  He believes that we could see the stock market drop by a total of six to ten percent if both Democrats win

That’s according to Oppenheimer chief investment strategist John Stoltzfus, who wrote in a note to clients on Monday that investors may be spooked by the prospect of increased corporate taxes and government spending under the Biden administration with a Democratic majority in the House and the Senate.

“A Democratic sweep of the two runoff elections in Georgia could cause the U.S. broad equity market to experience a downdraft of anywhere between 6% and 10%,” Stolzfus wrote.

Large corporations were thrilled with President Trump’s tax cuts, but Joe Biden has said that he intends to get rid of them.

But in order to do that, Joe Biden needs a Senate that is controlled by Democrats, because a Republican-controlled Senate would never go for what he is proposing

Biden has repeatedly said he would roll back President Trump’s 2017 Tax Cuts and Jobs Act and raise the corporate tax rate to 28% from 21%, restore the top individual tax rate to 39.6% from 37%, tax capital gains as ordinary income, cap deductions for high earners, expand the Earned Income Tax Credit for workers over the age of 65 and impose the Social Security payroll tax on wages above $400,000. Without a Democratic-controlled Senate, those tax hikes are likely off the table.

At this moment, it is not clear who will win, but investors will be watching the results very, very closely.

According to officials in Georgia, we should have a pretty good idea of who won by the middle of the day on Wednesday

“Depends how close it is, but most likely it’ll probably be tomorrow morning. It really depends how many absentee ballots,” Georgia Secretary of State Brad Raffensperger told Fox News Tuesday morning.

David Worley, a member of the State Election Board, told The New York Times that if processing goes smoothly, officials will “have a pretty good idea” of who won by 1 a.m. Wednesday.

With so much on the line, spending on these races has reached levels that we have never witnessed before.  The following comes from Zero Hedge

  • Roughly $404 million was spent on advertising in the Perdue-Ossoff race, according to Advertising Analytics, making it the most expensive Senate race ever.
  • Nearly $300 million was spent on advertising in the Loeffler-Warnock race, making it the second most expensive Senate race ever – behind only Perdue-Ossoff.

Can you imagine how much good could have been done if 704 million dollars had actually been spent helping people instead?

Sadly, the game of politics has become all about money these days.  The candidate that raises the most money wins the vast majority of the time, and my advice for anyone that is planning to run for office is to raise as much money as possible.

As for the stock market, the ridiculous bubble that we are witnessing at the moment will inevitably collapse, and it is entirely possible that these election results could be a trigger event.

But whether it happens this week, this month, this year or some time later, there is no possible way that stock prices can stay at such absurdly inflated levels.

Even if the stock market fell 50 percent, stocks would still be overvalued based on historical norms.

Never before in U.S. history have we been more perfectly primed for a stock market collapse, and it isn’t going to take very much to push us over the edge.

For the moment, we are watching Georgia, but there will be many more pivotal moments as we continue to roll through the early stages of 2021.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Has the post-election stock market crash already begun?

Is this rush for the exits going to turn into a stampede?  Stock prices have been plummeting in recent days, and most of the talking heads on television have been blaming the declines on the COVID-19 pandemic.  Yes, it is true that the number of confirmed cases in the United States is spiking again, but I don’t think that alone is enough to account for what we have been witnessing.  Instead, I believe that the primary reason why stocks have been tumbling is because there is so much uncertainty about what is going to take place next week.  Investors hate uncertainty, and it appears that many of them would prefer to be on the sidelines rather than gamble on the outcome of this election.

On Wednesday, the Dow Jones Industrial Average was down another 943 points, and that was the worst day that we have seen since June 11th

The Dow Jones Industrial Average dropped 943.24 points, or 3.4%, to 26,519.95, posting its fourth straight negative session. The S&P 500 slid 3.5%, or 119.65 points, to 3,271.03, while the Nasdaq Composite fell 3.7%, or 426.48 points, to 11,004.87. The Dow and the S&P 500 both suffered their worst day since June 11.

Overall, stock prices have now fallen for four trading sessions in a row.

Will Thursday make it five?

I just can’t see a whole lot of investors wanting to jump into the market right before Election Day.  Many have warned that an extended period of time when we don’t know the winner of the presidential election would be a “nightmare scenario” for investors, and right now it appears to be quite likely that we are headed for just such a scenario.

Yes, it is still possible that we could witness a landslide victory for either Joe Biden or Donald Trump that would bring the race to a conclusion very rapidly, and such an outcome would be greatly welcomed by the financial markets.

Unfortunately, it is probably much more likely that the election results will be bitterly contested, and the counting of mail-in ballots and legal fights over which votes to count could take weeks to resolve.

And when it is all over, that is when things could get really interesting.  There will be tens of millions of Americans that will be extremely upset no matter which side wins, and we could very easily see a massive national temper tantrum.

In the past, presidential elections have often resulted in significant stock market rallies, but this time around I think that it is quite likely that the opposite will be true.  Chaos in the streets is likely to be accompanied by chaos in the financial markets, and once stock prices start falling they could potentially tumble quite a long way.

Meanwhile, health authorities are telling us that the number of confirmed COVID-19 cases is starting to rise aggressively, and this is creating a whole lot of fear

For the first time since the pandemic began, the United States added more than half a million coronavirus cases in a week, according to a USA TODAY analysis of Johns Hopkins University data. This is the third day in a row the U.S. set a record for how many coronavirus cases it reported over the previous seven days.

In particular, many investors are deeply concerned that a new wave of lockdowns could crush the U.S. economy once again.  According to CNBC’s Jim Cramer, more lockdowns without more stimulus money from the federal government would be disastrous for the financial markets

Appearing on CNBC’s Squawk Box Wednesday, Cramer said he believes that restrictive measures such as those announced Tuesday in Chicago are on the horizon, and that without a stimulus deal, the implications for the market may be dire.

“I just think that there’s going to be a call for lockdowns the likes of which we’ve seen in Chicago,” Cramer said. “And I think that the lockdowns without the stimulus equals what we’re seeing,” he added — referring to the market’s freefall this week.

Of course the real economy has never recovered from the lockdowns that were instituted earlier this year.

For example, Boeing just announced that they will be laying off more workers than originally projected

Boeing will cut more jobs as it continues to bleed money and its revenue fades during a pandemic that has smothered demand for new airline planes.

The company said Wednesday that it expects to cut its workforce to about 130,000 people by the end of next year, or 30,000 fewer than it began with in 2020. That is a far deeper cut to its workforce than the 19,000 jobs the company said it planned to trim just three months ago.

And small businesses continue to suffer greatly all over the country as well.

If you can believe it, one recent survey found that a whopping 34 percent of all small businesses in America were not able to pay all of their rent for the month of October

Eight months into this devastating pandemic, more than one-third of small businesses are still having trouble paying their rent, according to our latest Alignable Pulse Poll of 7, 726 small business owners taken last week.

Right now, 34% of our small business owners report that they were NOT able to pay full rent in October.

There is no way that anyone should be using the word “recovery” to describe what we are witnessing.  When a third of all small businesses cannot even pay rent, that indicates that we are in a full-blown economic depression.

Earlier this year, the Federal Reserve pulled out all the stops in order to support the financial markets and the economy, but now even CNBC is admitting that the Fed is just about out of ammunition…

While no Fed official ever would acknowledge that monetary policy ammunition is running low, and in fact would insist to the contrary, there appear to be few weapons left in the Fed arsenal.

“What they have left is really on the margin,” said Mark Zandi, chief economist at Moody’s Analytics. “They just don’t have much room to maneuver with regard to monetary policy. I don’t really see what more they can do. That’s why they’ve been so explicit in telling fiscal policymakers to do more, because they know they can’t help.”

So what is the Fed going to do if there is another huge wave of lockdowns all across the nation?

And what is the Fed going to do if there is another huge wave of rioting, looting and violence like we are currently witnessing in Philadelphia?

This election has the potential to be the spark that begins a very dark chapter in our history.

If things take a really bad turn, a stock market collapse may end up being among the least of our problems.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Wall Street Is Bracing For A “Nightmare Scenario” To Unfold On November 3rd…

Did you watch the presidential debate?  All over America people are still buzzing about it, because it was definitely unlike any presidential debate that we have ever seen before.  But despite all the chaos, the debate gave us tremendous clarity on one very important issue.  Unless there is a blowout of historic proportions, it is exceedingly unlikely that either side will be willing to concede on the night of the election or any time shortly thereafter.  In other words, the winner of the election may not be known until a long time after November 3rd, and this is being called “the nightmare scenario Wall Street wants to avoid”

The winner may not be known for days or weeks — and even then, the election could be contested. That’s the nightmare scenario Wall Street wants to avoid.

“It was chaos,” Kristina Hooper, chief investment strategist at Invesco, said of the debate. “I walked away from last night thinking there is an even greater chance of a contested election.”

The election of 2016 was very close, but Hillary Clinton conceded fairly rapidly because enough votes had been counted to make it clear that she was not going to be able to get enough electoral votes to win.

But this time around it is being projected that up to 40 percent of the population will vote by mail, and counting votes that are sent in by mail is a very slow process.

And many of the votes that are sent in by mail will not even be received until a number of days after the election, and that will just prolong the period of uncertainty that we are potentially facing…

One of the major uncertainties is how long it will take to count the surge of mail-in ballots that is expected because of the pandemic. Some states don’t even begin that process until Election Day. Others accept mail-in ballots received after Election Day if they are postmarked by a certain date.

Both sides have recruited vast armies of lawyers, and it is very difficult to imagine either President Trump or Joe Biden rushing to concede the race.

Instead, it is much more likely that what we will go through will be “Bush v. Gore on steroids”, and many on Wall Street are anticipating a violent stock market decline if that happens.

But of much greater concern is what is happening to the real economy.  It appears that a new wave of corporate layoffs has begun, and that means that it will be a very bitter holiday season for millions of Americans.

At this point, even some of our most monolithic institutions are letting people go.  When I heard that Goldman Sachs was eliminating 400 jobs, I thought that there must be some mistake.

But there is no mistake.  They are making cuts because times are hard and will only be getting harder.

If even “the Vampire Squid” is laying workers off, what hope is there for the rest of us?

On Wednesday we also learned that approximately 9,000 employees of Shell will be losing their jobs

Royal Dutch Shell announced on Wednesday plans to cut up to 9,000 jobs, or over 10% of its workforce, as part of a major overhaul to shift the oil and gas giant to low-carbon energy.

Shell, which had 83,000 employees at the end of 2019, said that the reorganisation will lead to additional annual savings of around $2 billion to $2.5 billion by 2022 beyond cost cuts of $3 to $4 billion announced earlier this year.

If the U.S. economy really was in the process of “turning around”, would we be seeing layoff announcements like this day after day?

I don’t think so.

And it is those at the bottom of the economic food chain that have been hit the hardest

The economic collapse sparked by the pandemic is triggering the most unequal recession in modern U.S. history, delivering a mild setback for those at or near the top and a depression-like blow for those at the bottom, according to a Washington Post analysis of job losses across the income spectrum.

Recessions often hit poorer households harder, but this one is doing so at a scale that is the worst in generations, the analysis shows.

Prior to this crisis, most Americans were living paycheck to paycheck, and many of them have families to support.

So what do you do when your income is gone but the expenses are still there?

Yesterday, I discussed the fact that 100,000 airline industry employees could soon lose their jobs.  One of those employees that is on the verge of being laid off is 41-year-old Toni Valentine

Toni Valentine, 41, a United reservations agent in Detroit who has been with the airline for 15 years, has been told she’ll be laid off this week. She has six children ranging in age from 2 to 22, and her husband can’t work because he’s recovering from a massive stroke.

“Knowing that I may not have insurance benefits, I feel like I have failed,” she said on a conference call set up by the Machinists Union. “I’m the primary breadwinner in this family.”

Can you imagine what it must be like for her right now?

She has been a faithful employee for 15 years, and now everything that she has worked for is about to be taken away.

51-year-old Tiffany Burgin is another woman that has had her career rudely interrupted by this pandemic.  She had worked her way up to become an assistant manager at a restaurant in the French Quarter of New Orleans, but now she fears that her job may be gone permanently if the tourists never return

“The writing is on the wall. I don’t think my owner is going to make it,” said Tiffany Burgin, an assistant manager of a restaurant in the French Quarter of New Orleans that remains closed. “It’s a 100% tourist-driven economy here. Until the tourists come back, we’re screwed.”

Burgin, 51, never got a college degree. She climbed her way up the ranks of New Orleans’ booming restaurant industry, serving entrees and tending bar for years before becoming a manager. But she has not worked since mid-March, after a mass of tourists caught the coronavirus following Mardi Gras celebrations. Many establishments in the French Quarter are still boarded up.

The only way that tourism will return to previous levels is if this virus goes away, but at this point it has become clear that is simply not going to happen.

So she will continue to have to try to survive on her meager unemployment checks, and that certainly is not easy

“I get $247 a week in unemployment,” Burgin said. “Who can live on that? Who? Nobody I know. I haven’t been this poor since I was a teenager.”

I wish that I had some good news for workers such as Burgin and Valentine, but I don’t.  In fact, economic conditions will eventually get a whole lot worse.

But in the short-term, the country is fixated on the upcoming election, and every day we see more evidence that both sides are bracing for a very long battle.

I know that there are supporters of both candidates that believe that a “nightmare scenario” can still be avoided because they are convinced that their guy is going to blow the other candidate out of the water on election night.

We shall see what happens, but I don’t think that it is going to work out that way.

Instead, I believe that we are headed for a horror show, and I don’t think that America will ever be the same again after this.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Why Is The Mainstream Media Signaling That A Much Larger Stock Market Decline Is Coming?

Why would the mainstream media want all of us to believe that stock prices are about to fall dramatically?  Just like we witnessed earlier this year at the beginning of the pandemic, the corporate media is full of reports that seem to imply that it is a virtual certainty that stock prices are going to go even lower.  Of course it would make perfect sense for stock prices to go down because they are incredibly overvalued right now, but normally the mainstream media does not try to tell us where stock prices are going next.  And the fact that so many news outlets are repeating the same mantra right now is particularly troublesome.

Without a doubt, the momentum of stock prices is taking us in a downward direction at the moment.  All of the major stock indexes have posted declines for three weeks in a row, and it looks like this week could make it four.

As I write this article, the Dow Jones Industrial Average is down 4.5 percent for the month, the S&P 500 is down over 6 percent, and the Nasdaq has fallen about 8.5 percent.  Overall, the market is on pace for the worst September in 18 years, but the corporate-controlled media seems convinced that things are going to get even worse.  For example, the following comes from a CNBC article entitled “Stock sell-off accelerates and is expected to get worse before it gets better”

Stock investors focused on new worries about the coronavirus and economy, selling into a market Monday that was already technically shaken and set for further declines.

I looked for evidence that would back up the assertion that the market is “set for further declines” in the remainder of that article, but I didn’t see any.

Without a doubt, I definitely agree that stock prices have a long, long way to fall, but there is no reason why they couldn’t bounce back for the rest of this week.

So it seems odd that CNBC would be so dogmatic.

And USA Today just posted an article that suggested that we are facing “a looming global financial crisis”…

“Massive fiscal and monetary policy stimulus” that came together to prop up the economy has caused debt to balloon and stocks to become potentially overvalued, posing “the serious risk of a looming global financial crisis as central banks begin to shift away from easy (monetary) policy at some point in the years to come.”

Once again, I definitely agree that a global financial crisis could erupt at any time.

But normally we don’t see the mainstream media using such language.

At this point, we are less than a month and a half away from the election, and many have suggested that uncertainty about the outcome could weigh heavily on the market.  In fact, CNN is telling us that we should anticipate “that volatility will be high” during the period surrounding election day…

Market experts have warned that volatility will be high toward the end of the year and around the election, especially because many expect the winner won’t be known immediately.

Could it be possible that there will be an attempt to disrupt the market in an attempt to make one of the candidates look bad?

I know that would sound absurd during normal times, but these are definitely not normal times.

And ultra-wealthy insiders definitely seem to believe that something is coming, because they have been selling stocks like crazy recently.  According to Zero Hedge, “during the week ended September 11, insiders sold $473 million in shares while only buying $9.5 million.”

I don’t know about you, but those numbers definitely got my attention.

Of course stock prices should have never, ever gotten so high in the first place.  The unprecedented market rally that we have witnessed in 2020 has occurred during a time when we have actually plunged into a new economic depression.  Almost every day I share more horrific economic numbers with my readers, and here are some more from the New York Post

Nearly 90 percent of New York City bar and restaurant owners couldn’t pay their rent in August, heightening the continued crush the coronavirus shutdown has inflicted on Gotham’s economy.

Eighty-seven percent of bars, restaurants, nightclubs and event spaces in the five boroughs could not pay their full August rent, according to data from 457 businesses surveyed between Aug. 25 and Sept. 11, in a new study released Monday by the nonprofit NYC Hospitality Alliance.

How in the world can anyone possibly use the phrase “economic recovery” when we are seeing numbers like that?

We have never seen an economic downturn of this magnitude in all of modern American history, and many believe that what we have experienced so far is just the beginning.

With each passing day, we see more societal turmoil in the headlines, and the upcoming election threatens to bring our societal tensions to a thundering crescendo.

In such an environment, a huge stock market crash would not be surprising at all, and some are suggesting that the shove that pushes us over the edge could actually happen on purpose.  In his most recent video, Greg Mannarino warned that the upcoming financial crash “is going to be epic”, and he told his audience that our largest financial institutions could collapse the market any time that they want

“They can crush the global economy or the market. The global economy, which is the middle class, is already crushed, ok. They can destroy the stock market like this [snaps fingers.] And you can see it playing out right now. So all to of this is more than likely going to get brushed under the rug as it always does,” Mannarino says of the banks controlling the world.

It is not unusual for pundits such as Mannarino to make such bold predictions, but what alarms me is that the mainstream media is also strongly suggesting that a market crash is coming.

Even if the mainstream media is not attempting to do it on purpose, their words can become a self-fulfilling prophecy as countless investors spooked by their reports pull money out of the marketplace.

Sadly, this is one instance in which the mainstream media will ultimately be proven correct.  Whether it happens in the immediate future or not, the truth is that we are heading for a financial meltdown that will be absolutely horrifying.

In recent months, the Federal Reserve was able to reinflate our financial bubbles one more time, and hordes of investors eagerly jumped aboard the rally train.

But now that train is in danger of being derailed, and those that do not hop off in time could find themselves plunging into a nightmarish financial abyss.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

A September Stock Market Crash?

Many of us have been waiting to see what surprises the month of September would bring, and it appears that a stock market crash may be one of them.  Even the most ardent market optimists were admitting that the absurd bubble that had developed over the course of the summer was completely unsustainable, and the only real debate was over when it would finally burst.  So is this it?  Stock prices have certainly plunged quite dramatically over the last several trading sessions, but it is always possible that things could stabilize for a little while.  But whether it happens in September, October, November, December or next year, the truth is that everyone knows that a crash is coming.

On Tuesday, the Dow Jones Industrial Average fell another 632 points, but that wasn’t the real story.  Far more noteworthy was the fact that the Nasdaq was down another 4.1 percent, and that means that it has now dropped a total of more than 10 percent since it hit a brand new record high last week.

Only two times since 2001 has the Nasdaq fallen more rapidly over three trading sessions.  The index is now officially in correction territory, and the losses have been staggering.  In particular, the six largest tech stocks have collectively lost more than a trillion dollars in value during this three day stretch…

The six biggest tech stocks have lost more than $1 trillion over the last three days alone, but it’s really just a dent coming off a huge rally that peaked last week.

Apple, which hit a $2 trillion market cap on Aug. 19, is down about $325 billion in that time period. Microsoft’s down $219 billion, Amazon fell $191 billion, Alphabet cratered by $135 billion, and Tesla, which fell 21% on Tuesday to mark its worst single-day loss in its history, is down $109 billion in the last three days. Finally, Facebook is off by $89 billion.

A trillion dollars is a serious amount of money.

If you had started spending a million dollars every single day when Jesus was born, you still wouldn’t have spent a trillion dollars by now.  So we are talking about a giant pile of money that is almost unimaginable.

Apple has the largest market cap of any of the tech giants, and over the past three trading days it is down a total of more than 14 percent.  That is the worst three day stretch for Apple since October 2008.

But if you want to see a real disaster, just look at what has been happening to Tesla’s stock price.  Do you remember a few days ago when I said that it would still be overvalued if it went down 90 percent?  Well, after Tuesday we only have 69 percent more to go before that actually happens

Tesla shares closed down 21.06%, making it the worst one-day loss on record. Tuesday’s drop brought the company’s market valuation to $307.7 billion. The stock has been on a tear this year, having risen around 300%, and the company is now worth more than some of the world’s largest automakers, including Toyota and Volkswagen.

It was widely assumed that Tesla would be added to the S&P 500 on Friday, and when that didn’t happen it was “a big disappointment for investors”

But while S&P Indexes announced late Friday that it was adding Etsy, an online marketplace for crafters; Teradyne (TER), a company specializing in industrial automation and robotics; and Catalent (CTLT), which develops pharmaceuticals, to the index, the absence of Tesla was a big disappointment for investors, prompting the sell-off.

But the bigger disappointment for Tesla investors will come when the general public finally realizes that a company that sold less than 100,000 vehicles and actually lost 862 million dollars last year is simply not worth 307 billion dollars.

I understand that people like to make money flipping Tesla stock, but to me the entire company is a giant mirage that will eventually collapse in spectacular fashion.

As for the market as a whole, I am not too excited about this current downturn just yet.  When CNBC asked Kristina Hooper about what we are seeing, she simply labeled it “a healthy period of consolidation after a dramatic run-up”

“Some are suggesting this is the start of another dramatic sell-off, similar to the spring of 2000 when the ‘tech bubble’ burst. I highly doubt that,” Kristina Hooper, Invesco Chief Global Market Strategist, said in an email to CNBC. “I think of this rout not so much as a correction, but as a digestion given that the NASDAQ Composite rose more than 60% from its March bottom in the course of less than six months. All In all, I think this is a healthy period of consolidation after a dramatic run-up.”

Yes, it is still entirely possible that this could turn into the big crash that everyone has been waiting for.

But I think that I will wait until the Dow falls below 25,000 before I start hyperventilating.

Of course I am among those that are entirely convinced that a stock market crash is definitely coming at some point.  At this moment in history, stock prices are absurdly overvalued.  Back in 1990, the total value of all U.S. stocks was sitting at a level that was approximately 60 percent of U.S. GDP, and these days that number has been hovering around 200 percent

In his 2007 memoir, former Federal Reserve chair Alan Greenspan wrote, referring to late 1996, that “America was turning into a shareholders’ nation”. He noted that the total value of US stock holdings had risen from 60 per cent of gross domestic product in 1990 to 120 per cent of GDP by 1996 — “a ratio topped only by Japan at the height of its 1980s bubble”.

In Japan, that ratio had jumped to 140 per cent by the end of 1989, according to the World Bank. The ratio of market capitalisation-to-GDP in the US in 2000, to the amazement of Mr Greenspan, would go on to reach that same level. Today, the market capitalisation-to-GDP ratio in the US is just shy of 200 per cent. The S&P 500 companies alone are worth about $30tn, or 150 per cent of GDP.

So that would seem to imply that stock prices could ultimately fall by more than two-thirds, although I believe in the long-term they will go a whole lot lower than that.

In the short-term, we will see what happens.  10 of the 20 worst single day percentage declines in stock market history have happened during the months of September and October, and it wouldn’t surprise me at all to see some huge waves of volatility during the weeks ahead.

But it is probably going to take some sort of a “trigger event” for the really big crash to happen.

That “trigger event” could happen tomorrow, or it may not happen for quite some time.  But without a doubt the market is perfectly primed for a major disaster, and it certainly won’t take too much to push it over the edge.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.com.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  By purchasing the book you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.