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Saturday, December 28, 2024

2025 Stock/Capital Market ~ The Imperfection Of Perfection

infinity is indeed finite...

Stockmarkets

The 2024 euphoria of WallStreet, capping high & higher indices [DJIA, NASDAQ, S&P500] is not unlike the Last Waltz ... but few are leaving the dance hall

Since the 80s, I deep dived into the capital & commodities markets  and the experiences are not something that any books can fully describe. It takes more than fundamental & technical analysis [including time-cycles, ElliotWave, Fibonacci numbers, wave patterns, lunar and solar eclipses & others]; you need lots of commonsense and an appreciation of psychology   

As there are too many "X-factors" that influence stockmarkets, i will narrow down to describing the Lunar & Solar eclipses. The degree of impact of eclipses vary whether it's partial eclipse, penumbral eclipse, annular eclipse or total eclipse.

Lunar eclipse causes pull back in stockmarket whereas Solar eclipse is positive and the stockmarket rides the upswing [there was a Total Solar Eclipse in April 2024 and most stockmarkets enjoyed an uptick, even the weaker ones also rebounded before tapering off].    

Another sample, in Feb 2008, stockmarkets fell following a Total Lunar Eclipse and recovered by August 2008 with advent of the Total Solar Eclipse

Around Mar 1997, the Total Solar Eclipse lent confidence to stockmarkets such that by the onset of Total Lunar Eclipse in Sep 1997, the Asia Financial Crisis was in full blown. With the Total Solar Eclipse casting in Feb, 1998, sanity and recovery returned 

January and July of 2000 saw two Total Lunar Eclipses; perhaps, you may want to test this quiz! Going forward

2025 - Partial Solar Eclipse :

29th March, 2025

21th September, 2025

2025 Total Lunar Eclipse :

14th March, 2025

7th September, 2025  

Will 2025 be any different? Your guess is as good as mine

Some may equate eclipses to superstitions but somehow the phenomenon influences mass psychology. Of course, everyone is entitled to their own beliefs and opinions. YES! Take above with a pinch/pound of salt and as some story telling and kinda folklore. It is NOT an investment advice

The power of positive influences

The (im)possible 'landslide' win by Trump for the next US presidency defy all negatives; paid companionship, felony, accusations, aged & olde, impending 'cases'... were followed with sharp gains in cryptos and the capital markets

Israel went on to defeat the Hamas mercilessly, attacked the neighboring countries, including 'taking down' Syria against human order and committing genocide with impunity

Ukraine, with US/NATO backing and blessings, is fighting Russia. The unthinkable was when the West allowed western arms and machinery to be used against Russia; with her nukes stockpile, Russia will not sit by idly in defeat. It shalt be MAD ~ Mutual Assured Destruction

Globalization 1.0 was when countries enter into direct economic exchange and cooperation whilst globalization 2.0 was when economic blocs deal favorably with one another. Globalization 3.0 is when China's initiative, One Belt, One Road [OBOR], begun. The world's trade are well served and delivered in speed and precision and minimal disruption

Asia anomaly 

In the meantime, fairly peaceful Asia is frequently provoked into action against one another by the mightier US & her allies. It will be US's dream come true if wars break out in Asia and a sea of red explode in suddenness

MiddleEast, Europe and Asia are the playgrounds of the US; the more uncertainties and bitter infighting, the better but nobody gain in wars and destruction, save for US continued domination ~ what good can you inherit in a destroyed globe? Clueless vanity  indeed

Going forward

2025 is gonna be surreal; how does, or can, FED reduces rates if, and when, P. Trump imposes higher tariffs and caused imported inflation and how will Asia, in particular China, in her current deflationary mode, motivate "spending and the multiplier"

The world's trades will shrink, plausibly triggering a global recession when one dominant economic bloc refused, nor allow others, to trade with other regional blocs.

But, all is not lost; After the dusts settled, and the damages done, it is reconstruction time when sanity returns   

Everyone will pay a price for the 'insanity to beggar thy neighbors' ~ there will never be a perfection of this imperfect world ~ sharing is the only way to survive and prosper


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