I’ve been anticipating the U.S stock market decline for a while now and this week the Dow Jones industrial average declined below 12,000.
I believe there is more downside coming in the near future. My initial assumption was that this decline will start near the end of June, however with markets it is always difficult to know when it will actually happen.
The economy seems to be slowing and of course as I have eluded to in my previous articles the job rate, natural disasters, high commodity prices , server real estate issues and problems with the U.S government debt will sooner or later rear its ugly head. There was never really a recovery during QE2 (Fed money printing), the U.S government and media just pasted over the long standing issues and kicked the can down the road and labelled it a “RECOVERY”. The said it so much, that the public believed it, after all the 2012 election is coming up.
All my bear market ETFs (HSD.TO, HSD.TO, HXD.TO) positions will make a decent profit by the end of the year as things get worse. Nothing has been addressed or fixed since the crisis of 2008, so the next crisis will be much bigger. Even QE3 printing of more money and injecting it into the U.S economy will not help, it will lead into a inflationary recession.
by Das Brain
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