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Posted: 12/12/19

WHY THE STOCK MARKETS WILL CRASH

Follow the money

THE $5.9 TRILLION MARKET

There is a simple reason the stock markets have not 'crashed' and that is the 1%. I've spoken about this many times but it has never been more apparent than now, with the leader of leader of the free world being in that elite club, of how the global markets are functioning. Like him or loath him Donald knows how to make money in business. Sure he's pretty shit at it and had a string of failures, but he has managed to turn his dad's $100's millions into, so we are lead to believe, billions. Good boy. You know what they say, turning a dollar into a million is a miracle, turning a million dollars into 2 millions is inevitable.

What's clear however with the business style he has adopted, and the persona he has created over the years, the White house and co were not quite prepared for this type of President. One who realizes ultimate power means just that, you can, as long as no one holds you accountable, you can say and do pretty much what you want. I'm not going to sit here wasting my time going over what a bad man Donald is, the point is we have heard his Tweets and rants, it's now about peeling back the layers of who and what this man represents.

The fact is there is around $5.9 trillion dollars floating around in family offices. Something I have first hand knowledge of. I've been in the sweaty little offices who have boxed Andy Warhol's sat collecting dust, walls of unimaginative code named files containing complex 'structures' to hide, in this case about $3bn of Russian money. Not the dodgey dodgey Russian money, the smart Russian money, the ones who buy hundreds of millions in T-Notes to stay off the sanction lists. The ones who don't own football clubs but just have the same amount of money. Money talks, wealth whispers and all that.

So what's that got to do with Trump?

What's that got to do with the stock markets?

Well glad you asked. Who do you think is and has been buying the dip the last 10 years? The 1%. The top 10% of global investors who have more cash to invest than the rest of the mom and pop put together globally. This is Trump. This is his network of friends and associates. Family offices hold all the money, all the clues to when the stock market will inevitably crash. 

Take a look at where the money is held.

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Now there is a reason the 1% have got steadily richer after the GFC (and the rest of us have stayed pretty much the same) and that is that they all bank with the same people. They all have access to this top tier of money and style of management.

The last president no doubt made some calls to really the troops to correct the markets, remember these people are all about wealth preservation so it's in their interest to pal up with the government to make sure the wheels don't fall off and ruin it for everyone!

Now this has all changed with Donald. Also so has the greed. FOs used to exist to beat inflation, after all these people were rich enough. It was about having money in the family for generations.Providing a future for all the other aspiring PMs and Presidents. This is not the case. With Donald basically saying buy stocks as I want to make me and my mates richer, and I also control the FED, as no one once again told me out right that I couldn't. So there will be plenty of government help pushing these markets up with us. The level of greed and return these FOs want is off the charts.

Not the 2% of so to beat inflation but 10-20% returns, and remember we are talking about collective trillions! This just means for a 'crash scenario', what goes up dramatically will correct even more dramatically.

So what does it all mean now then?

When the FO's and the 1% get mentioned on the wires about their fears on recession and their desire to hold cash, then the alarm bells should start ringing. 

Now we have all sold the top of the markets at some point over the last decade and been burnt. Valuations and value don't mean the same thing when money is just being created in made up economic policy of never never. The fact is that it's not that the FOs and 1% will all pull the plug, I think it's more when they are told to pull the plug. It will probably coincide with a war with Iran.

The 1% all get short and ride out the bad times, as they can being billionaires, then just buy it all back a bargain basement prices to start the whole process all over again.

Basically look who is in charge of all the money. Follow the money.

Good luck

Steve

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