QUESTION: As a small retail investor, what would Marty suggest to invest in if in fact we break the 23000 level on the DOW and we do in fact get the phase transition that he is talking about? Furthermore, what would he use to profit from it? Shares in particular stocks, futures contracts or options in the DOW index? Lastly, if this phase transition does happen, what is the longest time frame that it would last, 12 to 18 months?
Thank Marty for all that he has done for us little guys. He has really opened my eyes to what is going on in this world.
ANSWER: In 2017, I will publish a breakdown of sectors and the differences between them. Keep in mind that the bulk of the retail public are not yet back in the market. The majority keeps saying how overvalued the market is, yet a substantial amount of people are all looking to buy the dip. Trump will be very good for the US markets and economy. Reducing taxes will bring capital home and it has already resulted in a new 13-year high in consumer confidence. That is the key to the market going into 2018.
The reflection point that will tip the scales to extremely bullish will turn on confidence. What MUST BE UNDERSTOOD here is we have two possible patterns: (1) We leave 2016 as the intraday high temporarily and back off, moving to retest support into 2018, and then rally in a major breakout into 2020, or (2) we press immediately higher and complete the rally by 2018 followed by a harder crash and burn.
These are the two possible paths that are coming up and it will all depend upon the actions and tone we set in January. We will prepare a very important special report on this topic.