Why The Next Two Years Could Be Worse Than 2008

On December 16, the Fed hiked interest rates by 0.25% as widely expected. The majority of analysts had predicted that because almost every Fed official coming into the media had made the case for a hike for several months.

In other words, the members of the FOMC had made up their minds, no matter what the facts were.

I wrote in our award-winning Wellington Letter that a hike would lead to a severe reduction of liquidity, and thus a strong market plunge in 2016.

Are You Profiting from the Market Plunge?

Man with Global Market decline 250x214.jpg

As our dedicated readers know well, we predicted major global stock market declines since early 2015. Our analysis showed the big selling being done by Wall Street, even while their analysts told investors that all was great.

As it turned out, there was no big “year-end rally” last December. In fact, we entered 2016 the same way we ended 2015: severe plunges in the major indices.

Since December

Year-End Rally Now, But Then What?

As everyone knows, the seasonally positive period of the year has started. The recent August-September crash, during which the DJI plunged 1089 points in about 30 minutes, caused a lot of selling by over-invested money managers. But then the market formed a double-bottom on September 29. One day prior, On September 28, we issued a “Special Bulletin” saying:

The major indices are getting close to their August 24 crash bottom. Old lows provide support. There will be lots of bulls buying, thinking that a good bottom has been made. That will produce a bounce.

Should you buy the ALIBABA Hype?

Bert Dohmen’s Thoughts on the ALIBABA IPO

The very large, long anticipated NYSE IPO of Alibaba will come on Sept. 19. This is China’s largest online retail firm, accounting for perhaps 80% of all China online sales. Many US investors are eager to get some of the shares. Should you?

Reportedly an initial price range of $60 to $66 for Alibaba is contemplated. That gives the company a market cap of about $147-$167 billion, quite a bit lower than the $200 billion that was mentioned at one time.