The current U.S. stock market situation is similar to the Wall Street Crash of 1

- The current U.S. stock market situation is similar to the Wall Street Crash of 1929 -

On October 15, 1929, "Irving Fisher," an economics professor at Yale University, said the following.

“Stock prices had reached "what looks like a permanently high plateau." 이다.

In other words, he argued that the US "stock price has reached a level that seems like a high plateau forever."

The reason he expressed this is that on September 3, 1929, the Dow Jones Industrial Average recorded a new record of "381.17 points", which rose by about 10 times in nine years.

Surprisingly, after Irving Fisher's remarks, shares in the U.S. stock market began to recede, and the Wall Street crash began on Thursday, Oct. 24, 2019, when the Dow dropped 6 percent.

Then on Monday, October 28th (Black Monday), the Dow lost 13 percent, which we call the "Wall Street Crash of 1929."

Over the next three years or so, the stock price, which has plummeted by nearly 89%.

And with this "Wall Street Crash of 1929," the world has entered a 12-year era of Great Depression.

However, the current U.S. stock market is similar to the Wall Street Crash of 1929.

Because the three major indexes of the U.S. stock market are now setting new records every day, and the stock market is now running into uncharted territory, with Nikai also breaking "40,000 points."

So why is the global stock market setting a new record every day?

The first is that "hyperinflation" of the dollar, or the value of the dollar, has driven flood-like "market liquidity" into the stock market, with astronomical national debt of more than $34 trillion, a federal deficit of more than $1 trillion per year, and the resultant astronomical "Helicopter Money."

The second is due to "excessive bubbles and exaggerated advertisements" such as "AI semiconductors" centered on "AI semiconductors," especially "Nvidia."

Third, I think it's because of the Fed's "implication of a base rate cut."

Especially in the current case, Jerome Powell's insinuation that the Fed will cut the benchmark interest rate soon, and the market is betting on it as a "simple expectation" that the benchmark interest rate will be cut soon.

In other words, if the Fed cuts the benchmark interest rate, the dollar will fall further and inflation will intensify, and from now on, it is doing so-called "Inflation Hedging" by raising the value of the asset market.

For example, it is a new record for gold in recent years.

Gold prices, as well as stock prices, are setting new records every day.

For example, on February 14, 2024, an ounce (31.1 grams) of gold was priced at USD 2,000, but today, March 9, 2024 is rising vertically to USD 2,165 dollars per ounce.

In addition, the opposite phenomenon is that the value of the won is rising as the dollar depreciates.

For example, on February 13, 2024, the won was "1,340 won" against the dollar, but today, March 9, 2024, is "1,316 won," and the won is rising (the exchange rate is falling).

But in the end, it is important to keep in mind that "stock prices do not reach a high plateau forever."

And maybe this is "The End of Dollar," "The End of the Empire of U.S.A."

In other words, we should keep in mind that one day, "the era of hyperinflation" could suddenly turn into "the era of hyper-inflation" without knowing that it is foreshadowing "the end of the dollar era" or "the end of the era of U.S. imperialism."