2/21/20 Market Update – The system is operating as we theorized; longer bond yields plumb new depths

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PMI data show contraction for the first time since 2013. European and Japanese economic data show marked declines. Price growth data from last month show fading. The Coronavirus concerns have only added to demand shock. The demand shock is so far prevailing.
-Our theses remain intact as the markets are behaving the way we theorized.
-While I haven’t actively day traded stocks in almost 15 years, day trading can be very profitable. It provided my seed money to invest in real estate. While I do not provide a trading service, I have received interest from many Martin Armstrong refugees.
-Our goal is accumulate income generating assets as we get older. The younger we are, the more we should speculatively trade. Plow your profits into income generators.
-The supply of most items continues to remain elevated as interest rates plumb new depths. The 30-yr UST dropped to a new all-time low today.
-Any correction in stocks and other assets will remain muted as long as rates here fall.
-Fed Vice Chair, Clarida, says the markets are not pricing in rate cuts, but he is being disingenuous. He knows rates are coming down and he needs to temper trader enthusiasm.
-With dropping bond yields, housing data rise in the face of uncertainty. There is a lot of hidden demand as many renters would rather own.
-I haven’t forgotten about Facebook’s Libra, and neither has Facebook. They are still working behind the scenes in stealth mode to make it a reality. Shopify joins the consortium.

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