Any student of financial history knows that during both WWI and WWII capital flowed into the USA making us the world’s financial capital. And it is happening again as we see the DOW preparing for new highs.
Keep in mind we are not saying the markets are poised to make new highs.
But we are singling out the DOW.
Why?
Europe is broke…dead broke. And they desperately need to start a war with Russia so they can default on their debt.
We can’t seem to figure out why the EU seems to believe that a third time’s the charm fighting Russia…especially after they failed in WWI and WWII.
Unfortunately, WW3 is already baked into the cake. And as a result, the Big Money Capital flow is accelerating to the US in record numbers.
So, where does that money go?
Initially into short term treasuries for safety and yield.
However, just like in the past, the money finds its way into the markets and will concentrate on the Big Cap stocks in the DOW.
As expected, the pundits keep calling for the greatest crash in 150 years. They keep looking at charts and expect 1929 to unfold any moment.
But take a look at the following chart of the DOW and see if it looks like a crash is coming any time soon.
The NASDAQ and S&P 500 are a different story.
Because the IA trade is coming unglued with a lot of resistance against building the massive data centers.
And the credit rating on the multi-billion AI bonds is starting to crater as well.
The tech sector is suffering from schizophrenic sessions after having carried the other indexes for the last few years.
Preparing for New Highs
Add in the possibility of the Democrats taking both the House AND Senate in the upcoming elections and you’ll see the fear factor increase driving more money to the safety of the dollar.
However, this will be very bad for geopolitics because over 60% of Democrats are pro-Zelensky and want war with Russia.
And they will most likely give the green light to Zelensky to pull some stunt (Cough! False flag, Cough! Cough!) to bring NATO into the war with Russia.
At that time, they will push that Trump must honor NATO’s Article 5 and enter the war.
In spite of what we see we still contend that we are in The Most Hated Bull Market in History.
And we encourage you to take advantage of the strategy we posted in our recent Short and Sweet Tips column using the DOW as your base investment.
Read about it (HERE).
And share this with a friend…even if they don’t believe that the Democrats are (and always have been) the party of war. They’ll thank YOU later.
And tell them:
