This Rally Is Fueled By A Weak Economy

This stock market rally is being driven by a weak economy. It's a weak economy that's more instrumental in driving the market higher because the weak economy keeps the Fed in play. It keeps quantitative easing in play. It keeps interest rates going down.

U.S. - China Trade Deal

When Trump first announced Phase One he said it was already a done deal. Now it's delayed until sometime next year, if it ever happens at all. Trump should just see if he can get a Phase 1A deal done, or at least pretend that he can. That should be good for 500 more Dow points!

QE4, Pot Stocks, IPOs

Even as QE4 has pushed stock indexes to new highs, despite a weakening economy and the absence of a trade deal, not all stocks have gone along for the ride. Pot stocks have been smoked, falling 70% -90%. Bubbles are popping, and it will not be contained to pot stocks and IPOs!

Press Round Up: Bitcoin, Marijuana Stocks, A Weakening Economy

Peter Schiff has been mentioned often in the press in the last few days. Here's a summary of the most relevant article:


Peter Schiff States That Bitcoin Has Less Utility Than Pot - in U TODAY

Marijuana Stock Crash Could Affect Bitcoin Price, Peter Schiff Suggests - in International Business Times

Peter Schiff: Recession So Bad Coming, US Doomed to Default on National Debt - in Money and Markets

On a recent podcast episode, Peter Schiff told investors that the U.S. Economy is getting sicker,

“The economy is getting sicker. And that’s what the central banks are doing when they cut rates and they print money — they’re actually making the underlying economy sicker, even though it doesn’t look sicker because they’re just measuring the spending that goes on and they’re ignoring the debt that’s behind it.”

Market Update: Gold, IPO Market, Bitcoin

The main reason Gold is not getting a bigger boost from QE4 is that traders expect the markets to react the way they did to QE3. But when the Fed did QE3, markets believed it was the last QE, and that the Federal Reserve had an exit strategy. But QE4 is open-ended and exit is impossible! 

Related articles: Serbia Joins Central Bank Gold-Buying Spree

IPO Market and Stock Market Bubbles 

If you think popping bubbles are going to be contained to the IPO market or to the pot stocks, no. All of the bubbles are going to pop, including the total bubble in the US stock market overall.

Bitcoin and Pot Stocks

Lots of Bitcoin bugs criticized my tweet warning that the bursting of the pot stock bubble could be a harbinger of doom for Bitcoin as well. I am not comparing Bitcoin to pot. You can smoke pot and get high. You can’t do anything with Bitcoin. The similarities are the bubbles!