February 6 (King World News) – Gerald Celente: “The Trends Journal was first to forecast the Trump rally and first to predict a 10-percent market correction.
What’s next?
What will crash the market? “It’s interest rates, stupid.” No clearer proof is needed then how Wall Street’s fear of aggressive interest rate hikes drove the Dow down 666 points following last Friday’s favorable jobs report and higher than expected wage increases.
The fact is, it was super low interest rates and the Quantitative Easing policy of central banks pumping trillions of dollars of free money into banks, hedge funds and mega-investment firms that fueled the nine-year market rally.
What will stop a market crash? “It’s the economy, stupid.” And the US and global economies are in the best shape since the Panic of ’08 and corporate earnings are solid and are expected to increase as a result of Trump’s tax plans. And much of that money will go into stock buy backs.
However, our prediction of a 10-percent correction was inevitable. The Dow,’ up 34 percent since Trump’s election, is overvalued and over leveraged. By historical standards, price-earnings ratios are nearing the high end of their ranges. Clearly, the sell-off was imminent and volatility will continue until the markets find a new bottom and a sustainable trading range..."
at https://kingworldnews.com/alert-celente-just-issued-major-alerts-following-wild-trading-in-global-markets/
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