At about 9 p.m. EST, I was watching the business channel on my TV. A report was issued about new record low NEGATIVE interest rates emanating from Japan.
As a stock investor, I watch and analyze very closely all of the economic data that I can from all over the world. I have been absolutely stunned by the continuing growth in negative interest rates throughout a number of industrialized economies. The experts, who are usually almost always wrong, would say something like this: ‘ Negative interest on excess banking reserves is an instrument of monetary policy applied by authorities to encourage lending BLAB, BLAB, and BLAB. ‘ My response is that this is pure and absolute horse manure. These absurd negative interest rates violate all fair and reasonable laws of established economics that have been defined mathematically for more than 500 years.
It is my policy not to try and predict the U.S. stock market, but to simply observe trends and act mathematically. However, when the financial information coming to the U.S. from Japan hits the U.S. markets on Friday, June 10, 2016, it seems that the long feared implosion of U.S. and world equity prices will begin on June 10, 2016. Unfortunately, the economic implosion and lowering of equity prices will not stop in a day or in a week or in a month or even longer. Economic critical mass has been reached and the world will soon take notice !
R. Van Conoley