Financial Forecaster Says Stock Market Rally Is Just “Smoke And Mirrors” – Economy Bitcoin News
As the American economy experiences small business failures, historic unemployment rates, major supply chain problems, myriad product shortages, and rising costs for goods and services nationwide, the stock market continues to recover. Forward Thinking Group UK CEO Neil McCoy-Ward believes that the current stock market is “totally disconnected from the economy” for a variety of reasons, but McCoy-Ward believes that today’s bubbling stock market is mostly due to things like excessive incentives and shares is due to buybacks.
Neil McCoy-Ward describes an unsustainable economic situation
Just recently, the investor, financial forecaster and real estate market expert Neil McCoy-Ward was featured in a YouTube video on the Financial Monster channel. This Youtube channel is dedicated to daily videos about Bitcoin, investing, finance and wealth creation. The five-minute video, titled “How The Stock Market Crash Will Happen Step By Step,” is quick and to the point. McCoy-Ward begins by asking why the stock market returned after the Covid-19 crash and immediately explains that the massive Federal Reserve incentives helped.
The McCoy-Ward video explains in this economy “everything is falling except unemployment, which is rising”. The stock market should fail along with all of the smaller U.S. companies that are suffering as a result, but it won’t in 2021. The reason for this illusion effect and the current stock market bubble is stimulus, noted McCoy-Ward.
He also stressed that the US money supply had increased by 30% in one year. Essentially, all of the incentives go “into hard assets or the stock market and housing,” McCoy-Ward said. He stressed that the US real estate market is “booming”. In addition, “historically low interest rates” create a bubble, ”said the financial forecaster.
McCoy-Ward’s video clip explains why he believes the stock market will continue to recover and why major indices have returned to all-time highs. In fact, the top stock indices have seen valuation highs not seen since the dot-com bubble, the 2008 crisis, the ’87 financial crash, and the infamous stock market crash of 1929. McCoy-Ward explained how today’s financiers currently have easy access to credit, and while interest rates are zero, “the risk for individuals and businesses of getting into debt really isn’t great”.
Share buybacks that have given today’s financiers a “clean health record” since 1982
The financial forecaster claims that these companies simply increase the debt to the absolute maximum. Instead of improving the company with all available incentives and reserves, the companies will simply participate in share buybacks, McCoy-Ward said. Basically, a share buyback, also known as a share buyback, is the purchase of own shares from the market. McCoy-Ward points out how it enhances the corporate health credentials image.
While the program is an alternative way to give money back to some shareholders, the investor believes it is just “smoke and mirrors”. Stock buybacks were actually banned after the 1929 stock market crash, but a 1982 Securities and Exchange Commission rule under the Reagan administration allowed them again. Five years later, “Black Monday” (October 19, 1987) shook the stock market and the stock market crashed.
If you ask many economists what caused the stock market crash of 1929, “they will say share buybacks,” McCoy-Ward noted in the video. He added that he was quite surprised that the issue of share buybacks was barely discussed in the media today. A quick Google query on the subject shows that McCoy-Ward is right and that the subject is not discussed at all by the mainstream media.
The Fed’s recent stress tests claim that Wall Street’s biggest corporate giants like Morgan Stanley, JPMorgan, Bank of America, Goldman Sachs and Wells Fargo all were in perfect health. After the Fed gave Wall Street banks the go-ahead for the stress test, the firms simply increased shareholder payouts. McCoy-Ward also notes that if massive debt firms buying back their own stocks fail, they will be bailed out. He reminds the Youtube audience that governments don’t make money and that bailouts are only successful through taxes and more debt.
After McCoy-Ward describes the problem with share buybacks, McCoy-Ward revisits the real estate market and the strange relationship with the Federal Reserve at the end of the video.
The investor mentions that the central bank currently owns a third of all mortgages in the United States. “That means every third person who watches this video is owned by the Federal Reserve.
What do you think of the video with financial forecaster Neil McCoy-Ward? Let us know what you think on this matter in the comments below.
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