One important factor I am reminding myself as we move into January of 2023. If Government defaults on their bonds, the borrower get’s stuck with the bag. If a company/equity/stock defaults, you still can get something back after that company sells its assets.
Where Will Big Money Park?
So if you are seeking safety… and NEEDED to park money somewhere. Where would you park it?
Would you place it in bonds (that will not be paid back if defaulted)… or stocks (that will allow you to receive something back once they sell their assets)? It is likely in equities.
War To Misdirect The Government Default
It is clear the WEF (world economic forum) is working with governments to avoid the debt crisis (pension fund collapse). This war is the excuse as governments will default and they hope to create a one-world government with the UN and IMF creating a digital asset.
Panic In Bonds
Sources are showing that central banks are lending to domestic banks to increase the margins with the Fed. The has already doubled the margins as they are fearful as the defaults rise.
Different Scenarios In History
During the great depression in capital fled into bonds due to Hoover running a balanced budget. Now there is endless borrowing by the government never intending to pay it back.
Capital will look for safety as the bonds do not become the safe haven as before and shift into equities away from Government.
In Summary:
- Caution on Government Debt – Avoid at all costs
- Most institutions MUST buy the debt
- Institutions will hedge the bond loss by buying equities
- When the shift happens (Bonds to Equities), it will rise the markets
- There may be dips and fear, but not a major crash
What I Am Looking At:
- This week 3647.47 is weekly bearish (that may stick if closes below Friday)
- 3588.20 is Quarterly Bullish that could hold support
- If 3588.20 goes, 3413 next weekly gap down
- Waiting for end of week — Bullish over long term after this volatility scares people
- Currently testing today’s low, important to hold. Friday close also important 3647.47 to hold short term
End of Thursday Close
We closed below the prior low from an outside reversal up, then closed down below the low. Ouch… this may have down move into Monday 24th short term which now puts the Weekly Bear into question at 3647.47 — it could close below and give momentum lower into support 3552.60 area.
