Many of us older folk are getting a little nervous. That is why I preserved my profits some time ago, my Economic Clock Fund having risen 11% in September alone, and my Theme Fund having shot up 30.7% in one month. This represents annual gains of 283% and 3200%, respectively.
1. Why worry about Wall Street?
We have been bleating on about the Economic Time™ getting worse in America for many moons. And we have been wrong in an absolute sense: Wall Street has risen. But, The Economic Clock™ suggested China, Hong Kong and India instead, and these markets, in fact, have outperformed Wall Street handsomely over the past year or so.
We also have kept alluding to the empirical, albeit unfounded, observation that October is a crash month. All the more when it is festooned with the heavenly 'seven'. Just because I cannot explain this does not mean that it does not exist. Any doctors here who can explain where the common cold originates from?
Here are some more market chillers protruding from Wall Street:
So how can profits rise if The Economic Time is worsening? We keep sensing that stagflation is on the way.
2. Beijing hangover
Another idea grabbed me this morning after the CNBC show (and thus video clip). We have suggested for many harvests that China's markets will prosper in the run up to the National Party Congress and then again towards the Olympics.
But there also is a hangover when people vote (Party Congress) and before they sweat (Olympics). Here is our pattern prediction:
- from 12th May 1997 - 29th September, 1997, the market fell by 28%, and
- from 5th November 2002 - 2nd January, 2003, the market fell by 15%.
Now you have another reason for market caution.
3. If Wall Street sneezes, what cold does Shanghai catch?
Now, let's assume that Wall Street does, in fact, tumble. Since May, 2006, Wall Street has fallen four times in conjunction with Shanghai.
Here is your road-map to possible ulcers:
4. How to Save Money Off This Idea
Simple: preserve your profits and put your profits into high yielding cash!
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