by Peter Navarro at Peter Navarro’s Taking Back Trump’s America
Hi. Peter Navarro here with our weekly economy and market rap for the week ending October 6, 2023. And oh what a week it was.
For any newbies to this podcast and substack, let’s recall that I have been bearish on the US stock market. So far, that call is tracking pretty well over.
Over the last two months, the S&P 500 peaked at about 4,600 at the end of July and closed today at about 4300. That about a 7% haircut for a 401k or IRA holding “the market.” Of course, this was not a straight line fall but rather quite a volatile one marked by a strong bear market trap push back to around 4,500 on September 1.
During this time, cash has certainly been a safer bet as short term money market rates are grinding out a riskless 5% nominal return –roughly offsetting any losses to your capital from inflation.
Meanwhile, during this two-month period, the leveraged triple-short of the S&P 500 that I like to watch, the exchanged-traded fund SPXU, has gone from about ten bucks to a close today of $11.77. That’s around an 18% gain.
Of course, these are the kind of grim statistics that the touts on CNBC and Fox Business and Bloomberg love to ignore. Instead, they tell you to “buy the dip.” But in this case, that is just dippy.
Come now to the big news items of the week.
For starters, over last weekend,…
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