You have a choice:
“You can take the blue pill and go back to life as you know it. Or you can take the red pill and see the truth; the world for what it really is.” – The Matrix
The Matrix is a movie about the “chosen one” who is pulled out of his reality into the real world. He suddenly finds that he had been living in a dream world. The real world is dark depressing place.
Something eerily similar is happening in the financial markets right now, and this is your wake up call.
I’ve been looking for a easy way to explain the disconnect for a while now, and I finally came across a chart that I think does an excellent job of illustrating the disconnect.
Here’s the chart:
The green line is the stock market growth over the past couple of months.
The red line is the US economies growth over the past couple of months.
Anything look a little strange. I don’t know about you, but I was always taught the stock market grew as the economy grew.
How is that this graph shows the markets growing while the real economy is shrinking?
If the economy is shrinking, how can the stock market be going higher?
The short answer: it’s a false reality.
The markets are being pumped up by people who want to keep their rose dream world a reality.
Mean while the real world is crumbling.
You can see where the two lines used to move together. This was how it has worked in the past. Now, for the first time in history this is no longer true.
The only way for things to go back to normal is for the lines to begin to move together again. As you can see there is a big gap between the lines.
The red line is going to have to go up, and fast. Or the green line is going to have to come crashing down.
The latter is the most likely outcome. History has shown us that when the market gets too far ahead of the real economy, it comes crashing down to return to “normal”.
On Thursday, I’m going to tell you exactly what you can do to protect yourself from the coming crash and how to invest in the mean time for maximum profits.