• Clifford Bennett, Chief Economist at ACY


• 14.01.2022 08:45 am
#stocks , Clifford Bennett has over 36 years of market trading experience and was named the 'World's most accurate currency forecaster' by Bloomberg New York. He has advised some of the world's largest organisations, billionaire investors, and political leaders and spoken at the prestigious APEC summit on reserve currency issues. Clifford is the Chief Economist at ACY Securities.

About that next step.

The perils of already being very high.

Do not underestimate the prosperity that can flow from being bearish.

US Stocks fell sharply.

I do not expect a new high. Period.

SP500 Index hourly chart

The market has fallen back into the previous range, and it is the overlay of this price action upon the fundamental developments of the past week which is so concerning. Market commentators, lead by Jerome Powell, have spun as much positive as they could possibly wring from current developments.

The reality of a Fed with no idea in the midst of an inflation catastrophe will continue to grow in awareness across all markets.

This is as bad as it gets. Never before has the US Federal Reserve been less aware of real world fundamental economic events.

CONSEQUENCES: Will be without doubt a panicked central bank chasing inflation toward the middle and late 2022. Having seen their first initial steps achieve nothing in regard to inflation.

The fabric of the US economy will unravel to some degree under all the existing pressures and then too high rate hikes that will come in late.

AUS200 Index hourly chart

I humbly suggest, as I have before, that this market is about to collapse. Actually, 'game over' comes to mind. Selling now with stops above yesterday's highs could pay significant dividends.

Australia

Nothing has changed around my 65 cent 2022 forecast. I remain very much in the 'Sell Australia' boat as our economic policies fall further behind world's best practice year by year by year.

Our incredible mining and agricultural industries are at the cutting edge, but various regulation and national transport and ports efficacy leave a great deal wanting. Alienation of our biggest trading partner after decades of cultivating a close relationship, all in one term of government, cannot be easily discounted. Nor will the damage done be reversed for perhaps the next decade.

AUDUSD

Again, a very much sitting on the edge of a cliff waiting to fall sharply yet again market.

US Weekly Jobless Claims.

Begin to edge higher. Though for the moment still in a reasonable range, we do need to keep a watch on the potential for the Omi-surge to begin to show up in the form of people losing jobs.

Bank of Korea raises rates again.

One of the world's best central banks has been trying to get ahead of the inflation surge for some time. Pay attention Federal Reserve and Reverse Bank of Australia.