TradingToni

Welcome to the roaring 20s! Enjoy it as long as it lasts!

Long
TradingToni Updated   
TVC:SPX   S&P 500 Index
As a firm believer that history repeats itself, you can trade your way through the universe with this indicator.

Meet: The Roaring 20s!

After the pandemic of 1921.... oh wait, I mean 2021! We are heading for the greatest economic growth in our history. Inflation can be your friend if you use it right.

Why do I believe we are entering the Roaring 20s?

- The Innovation Supercycle:
To prove the theory, we need to take a close look at what caused the Roaring 20s in 1920. It is not a matter of when the innovation occurs, but WHEN it is available to the public. In 1920 the telephone, the automobile and electricity were COMBINED available to the public at prices affordable even to the poor. There is a strange notion that people believe that wars, and especially world wars, are the most innovative times in history. This is mainly due to the war propaganda of all sides at the time. In fact, war is highly correlated with the least innovations in history. For example, the Roman Empire is considered a highly innovative "nation" due to war and its fancy buildings. In fact, there are more results of innovative production every year in modern times than in 1000 years of Roman Empire, to put things in perspective. All of this is very generalized, but I need to keep things simple as I don't want to write another bible.

What are the current drivers of this new super cycle?
- Blockchain (eliminates almost all paperwork, destroys FIAT currency).
- Genetics (the first ever CRISPR vaccine was developed last year. This puts the money in the right place. Biontech now has billions to spend on research for their primary goal: eliminating cancer and hereditary diseases).
- Robotics (just look at a Tesla factory/Amazon warehouse, think 10 years+ now).
- Artificial Intelligence (I think everyone understands this).


- The Money Stock.
The final touch to support this theory. There is a LOT of money. Are we in a bubble? No, the market is adjusting right now. We are at the beginning of the biggest bull market in history. It will be years before we even get close to the bubble levels of the
DotCom bubble. Driven by the most people have ever lived on earth, the innovation supercycle, and the monetary value theory, the market knows only 1 direction: UP.

The final conclusion.
Not being optimistic about the future is the biggest mistake you can make in the stock market. Great years are coming and you should enjoy them! But as history shows: times will change.

I don't know when, but as time goes on, the FIAT monetary policy that every nation is now pursuing will eventually fail. That change will be hard to take. This is the reason why you can see the green line on the 01.Feb.2021. The time the FED stopped reporting the Money Stock.

I hope you will enjoy the ride with me!

Comment:
Side Facts:

- Spanish Flu Pandemic: February 1918 – April 1920 (4 waves, peak 1920).

- In 1920, just 35 percent of American households had electricity. By 1929, nearly 68 percent of American homes were electrified

- In 1920, 0 percent of American households had a telephone. By 1929, nearly 47 percent of American homes had a telephone.
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