DIJA Hits All-Time High; Where Do We Go From Here?
From its 2009 lows, the Dow Jones Industrial Average has broken through today to an all-time high.
If you think this is good news or an indication that things are turning around you’re either not very bright, you’re not paying attention, or you’re choosing to live in denial.
Without going into the details (which have been covered over and over and over by those in the know), it’s a sick joke that the “stock market” is where it is in light of the technical and fundamental underlying conditions in our economy. A lot of people’s financial situation, perhaps even yours, is going to get seriously slammed because they do not take the time to understand the causes behind what’s occurring. Many, especially those 60 or older, will never recover when the markets correct again (for the third time in less than 15 years).
It’s not my place to tell you what to do, but, it is inarguable that by delaying the necessary corrections to the problems that led to the 2008 crisis, we’re being set up for a crisis that will make 2008 look like a walk in the park.
In stark contrast to THEN and NOW:
GDP Growth: Then +2.5%; Now +1.6%
Regular Gas Price: Then $2.75; Now $3.73
Americans Unemployed: Then 6.7 million; Now 13.2 million
Americans On Food Stamps: Then 26.9 million; Now 47.69 million
Size of Fed’s Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
US Debt as a Percentage of GDP: Then 38%; Now 74.2%
US Deficit (LTM): Then $97 billion; Now $975.6 billion
Total US Debt Outstanding: Then $9.008 trillion; Now $16.43 trillion
(Source: ZeroHedge)
The question is not IF, it is WHEN. Though I have consistently been surprised by the Federal Reserve and other central banks abilities to kick the can seemingly forever – and now going on five years – mathematics will eventually put a stop to this. Though no one can predict the future there are a lot of events and facts now pointing to a conclusion to these games within the next 12 to 36 months.
Do not be fooled by today’s new highs in the Dow. In inflation adjusted dollars, and including dividends paid, the DOW has returned 00.00% since 2000. Will you be prepared when the next 40% crash in the DOW occurs? It could very easily happen tomorrow.
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