EUSA - A Substantial Correction In Stock Prices Is Likely Coming Soon
2024-06-17 16:26:25 ET
Summary
- I see an anticipated long-term B-wave high followed by C-wave correction in a larger scale sideways pattern, with a potential -25% decline for the Dow.
- Predictions of a world-changing technology revolution led by AI and robotics, shifting to Intelligence Economics, are causing disruptions in stock pricing.
- There's a fundamental shift from Capital to Debt Monetarism leading to economic dislocations and a paradigm shift, with the potential for a significant bearish phase for stocks.
In my last report , I indicated that I was expecting a long-term B-wave high, followed by a C-wave correction in a larger-scale sideways pattern. This seems to be playing out, though in a rather disjointed fashion. The broader indices have clearly seen some kind of high, while a very narrow set of tech stocks keeps pushing the capitalization-weighted indices higher. Chances are increasing that soon the epically bad technical breadth of the current environment will result in the anticipated C-wave drop. That move could see a bear movement of as much as -25% for the Dow, with less significant declines for Big Tech and much larger losses for Small-Caps.
My overall analysis for many years now has been that we would see a world-changing, paradigm-shifting technology revolution, led by Artificial Intelligence and robotics, that would formalize the end of capitalist economics and "markets" as we have known them and usher in a new epoch. This is being borne out in the present, as it becomes clearer that the future of the economy will be based on the generation and distribution of Intelligence as the primary economic value.
As I have also anticipated, a huge gap is opening up between entities based on the old models of economic value and the new emergent model, which can be called Intelligence Economics. This is being reflected in the pricing of stocks, with both smaller and more traditional enterprises falling behind and starting to decline while issues aligned with the new model accelerate to the upside. This massive divergence has, historically, led to a bearish period....
A Substantial Correction In Stock Prices Is Likely Coming Soon