Yes, I said that I would start a market commentary feature, then prompted forgot about it. Another fault of mine, doggone it. I can't remember stuff that I did 10 minutes ago sometimes.
Well, this is rather short because of the lack of time. I'd like to explore this a bit further, but there's things to do and places to go.
Anyway, there appears to be a wedge formation developing on the dow chart. It may be a rising wedge, which could be bullish, but I'm not sure. No time to look that up. If it is bullish, there may be another rally attempt higher towards new highs, but that would seem doubtful. If the Fed is going to raise rates, which it must at some point, there's a likely selloff ahead. The general delusion is that there economy will achieve escape velocity, which isn't happening. If it hasn't happened for six plus years, it isn't going to happen. Besides that, there's a long term trend in place towards lower and lower interest rates. This to me indicates that the economy has less and less growth in it. Eventually the growth will go to zero and interest rates cannot be sustained, so zero or below zero interest rates will become the norm. That may already have happened.
If negative growth ensues, then negative rates must follow. But if that happens, savings will end, and the collapse must occur as there will be no further capital formation without savings.
Al Fin: "Cowboy Commentary", aka "Eat your veggies" The Flag banner is posted in order to defy those who would make patriotic symbols illegal or disreputable.
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