Movable and Tangible assets rise- Cycle inversion ?

This is the REAL trend. After 2015.75, we will see capital still confused. The flight to quality will initially be to short-term paper of the USA, but that will give way as well. However, we have more than $25 trillion globally in bonds (short/long) and that is a huge reservoir of capital to shift. This idea that government debt is “quality” will give way to reality.  That means we will see tangible assets rise precisely as we see during a hyperinflation within a peripheral economy.

The daunting question is formulating when the cycle will flip from Public to Private. The major low intra-day is 2009. However, the lowest annual closing is 2002. Under most conditions, a 7 year rally would have produced a high in 2009, but that was overpowered by the ECM and the business cycle inverting that into a LOW. This is suggesting that we are in the inversion process.

A 26 year target from 2002 brings us to 2028. That is the next low on the 8.6 year wave. The Pi target will be 31.4 years  from 2002.85 giving us 2034.25 after the 2032 peak. As you can see, we are starting to line up with the lows in the ECM. This is part of the inversion process. Gold rallied AFTER 2007.15 and peaked with the low in the ECM 2011. Its rallies are lining up with the lows.

It is sad to say, but this process was unfolding going into the Fall of Rome. Here we have a picture of 1929. This was the culmination of a Private Wave in which we are in right now. The 1929 target was the equivalent of 2032. Note that at the end, equity did better than bonds.

We are entering this phase. The bulk of analysts keep saying the stock market will crash and burn. The gold bugs say buy gold. The conspiracy people see some new currency emerging like bit coin that is even less familiar to people than gold. Yet none seem to grasp that if we are headed into the worse part of this economic storm, how is some new currency going to emerge? Sorry, it is back to old-school. Getting off the grid with a diversification between movable and tangible assets.

That means capital will flow to the dollar since the USA cannot be easily invaded as can even Japan and Europe when politicians seek to find external enemies. This will most likely be the last and final 3rd rally due to war that sends the dollar to record highs. This implies tangible fixed assets have a chance of surviving in the USA requiring less of a mix for movable compared to Asia and Europe.