Is The World Headed Towards Stagflation? (Elliott Wave Analysis)
Momentum and price action are looking like a top has formed on the US Stock Market, and based on the Elliott Wave/Neowave count it appears that the market could be topping out for several years.
This massive crash will likely be accompanied by more COVID lockdowns, a real estate collapse, and several years of stagflation where inflation is abnormally high and economic activity and investment is abnormally low.
This fits in perfectly with my larger 100 years DOW JONES analysis, which indicates we could see a few years of choppy price action (stagflation) before getting the largest bull market in history which will be caused by elevated levels of inflation.
With companies like Evergrande and Zillow on the verge of collapse, a small correction in global real estate prices could lead to cascading liquidations and massive illiquidity in the real estate market.
The FED has also begun tapering their bond buying program, which could lead to higher interest rates and tighter economic conditions.
COVID cases in Europe are skyrocketing and governments are moving towards stricter lockdown measures because the vaccines have proven to be ineffective at stopping the spread of COVID.
The Biden administration has also begun attacking high oil prices and we could see a large correction beginning to happen in Oil prices which have reached 7 year highs. Stricter lockdowns could also reduce demand for oil and in a worst case scenario lead to negative prices temporarily.
Right now it's looking like all the conditions are set for a massive liquidity crisis. Still possible that we narrowly avoid all of this but this point it's best to be prepared.
This massive crash will likely be accompanied by more COVID lockdowns, a real estate collapse, and several years of stagflation where inflation is abnormally high and economic activity and investment is abnormally low.
This fits in perfectly with my larger 100 years DOW JONES analysis, which indicates we could see a few years of choppy price action (stagflation) before getting the largest bull market in history which will be caused by elevated levels of inflation.
With companies like Evergrande and Zillow on the verge of collapse, a small correction in global real estate prices could lead to cascading liquidations and massive illiquidity in the real estate market.
The FED has also begun tapering their bond buying program, which could lead to higher interest rates and tighter economic conditions.
COVID cases in Europe are skyrocketing and governments are moving towards stricter lockdown measures because the vaccines have proven to be ineffective at stopping the spread of COVID.
The Biden administration has also begun attacking high oil prices and we could see a large correction beginning to happen in Oil prices which have reached 7 year highs. Stricter lockdowns could also reduce demand for oil and in a worst case scenario lead to negative prices temporarily.
Right now it's looking like all the conditions are set for a massive liquidity crisis. Still possible that we narrowly avoid all of this but this point it's best to be prepared.
