Based on neowave analysis, it looks like the stock market is reaching the end of a 20 YEAR (!) corrective pattern. Wave-e of F is currently underway and could take a couple years to complete, meaning the next few years may be choppy, but overall with the quick response of monetary and fiscal policy to any financial shocks we'll likely see wave-e skewing upwards, and then ultimately when it finishes we will begin the largest, fastest stock market bull run in history which could take the Dow to around 1 million dollars in 2040!
This will mark the beginning of a new inflationary cycle throughout all of the markets, where people will actively seek to hold any assets other than fiat currency which is increasingly being perceived as being devalued. The stock market bull run will be built on the backs of both blockchain and AI. Companies will begin holding cryptocurrencies on their balance sheets which will allow their stockholders to profit from the increase in alpha that crypto assets provide, and they will also begin using smart contracts to automate and decentralize certain market functions. We'll also see a massive increase in AI and robotics that reduces the cost of labor for many companies dramatically.
The tokenization of stocks will also remove restrictions that make it hard for people in foreign countries to trade foreign stocks, or sometimes even their own domestic stocks if the traders are unbanked. This will allow new money to flow into the US stock market from around the world and help push stocks further upwards.
We won't see it immediately, but the long-term downstream effect of all this monetary easing and printing over the last 20 years, is that prices 20 years from now are going to be dramatically higher than they are now. CPI Inflation will probably rise above 2% for a few years as the FED has increased their target for inflation to make up for the low levels of inflation we've experience during this deflationary cycle. Things like healthcare, education, and housing will cost dramatically more than they do today, basically excluding all but a small financial elite, except that the government will end up paying for it for everyone and will probably implement UBI as well. Food and energy prices could triple or more. Wages will increase somewhat to keep up with this but it won't be enough for many people. If you're not investing your money now you are looking at a not so great future. If you do invest your money this is going to be extremely profitable for you, especially if you invest into fundamentally sound cryptos.
It may take the Dow Jones 20 years to reach 1 million from 30k, but Bitcoin could do it in 1-2 years.
How does this insanely high quality post and discussion have only 12 likes?
VictorCobra
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I have the opposite view - I think we are more likely to end a 100-year debt cycle and crash hard over the next few years. Can take a little longer for the final bubble phase to play out here though. Investing with the long term in mind is probably fine, but I see significant risk right now (for short term profits). I think the Dow Jones can be sub 10k by 2025, and can take over 2 decades to recover, similarly to the Great Depression. I still own most of my crypto, but I don't think de-risking is a terrible strategy. Here's my reasoning, speculative of course: <deleted>
-Victor Cobra
chullev
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@VictorCobra, i actually completely agree with you.. at lot more risk then reward. i dont see this heading higher much longer currently on the short side ;)
Intuit
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@VictorCobra, I think that's pretty unlikely. We might see another drop about the same size as the one in March, but the central bank's policies are so loose that these shocks will be short lived. The debt crisis you're thinking of will simply not happen because the central banks will print money to buy up all the bad debt and effectively bailout companies and even individuals. This will create a lot of inflation and will keep asset prices steadily climbing.
VictorCobra
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@Intuit, Certainly this is possible as well, but I think the DJI will likely at least correct to the bottom of the channel - my purple trendline - at some point in the next several years. But sure, they can keep printing money, and they probably will. But we should be aware of the emotional impact this has already had on the everyday person. There is a huge amount of social dissatisfaction that's causing a lot of pressure buildup. Just look at what's happening today.
I'm betting on human nature here, and I don't think we can continue to experience healthy growth as a species without a serious contraction/restructuring. The growth has arguably been unhealthy for a while. I also don't think UBI/expansion of welfare can coexist with such inflated asset prices. There is a movement to seriously tax the wealthy. A lot of this is about the wealth gap and what a society can handle psychologically. We've seen this before :)
-Victor Cobra
Christuanjonkar
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Nice chart.
FieryTrading
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Interesting chart🔥✌
TheSignalyst
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Beautiful projection here. Thanks for sharing
TheWiseCookie
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Bitcoin is going to have another bear cycle before 1 million. 0 chance of getting there on this run. maybe 400k and down to 30k and up to 1M by 2030. or 2029.
zaqoy
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Possible target but i do not believe it will go straight up. We are overdue for a major correction.. what happened in March was not a correction.