Beginning with a review of the classic sequence of asset distribution (bonds then, stocks, then inflation) the recent weakness in inflation assets is considered. Various Point and Figure counts are reaching downside objectives and are reviewed. A study of the 1971 to 1974 distribution structure is evaluated in an analog case study of the Dow Jones Industrial Average. There are similarities and some differences to today’s stock market. The Yield Curve has recently and decisively turned negative which is a ‘Tight Money’ condition for stock indexes. A review of the negative yield curve environments historically (back to 1990) are reviewed and their impact on future stock index trends.
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