The Lie in the Market

The dominant market paradigm is that inflation is transitory, the Fed will pivot and start cutting rates, and the stock market will go back up. This is the lie in the market. [Energy and Capital Header] Practical Investment Analysis for the New Energy Economy The Lie in the Market Christian DeHaemer | Aug 23, 2022 On December 7, 2021, I told you that the markets were heading lower and to sell the rips, not buy the dips. [This is what I wrote](: This is the most ominous chart I’ve seen in years: [top] This is a five-year, monthly candlestick chart of the SPX. The SPX is based on the 500 top companies in the United States. Each candlestick represents a month. The chart goes back to 2017. That red candlestick from two months ago (October) that looks like an upside-down hammer is called a “gravestone doji.” I hit the nail on the head with that call. The SPX sold off to 3,636.87 — down from a high of 4,818.62. Size Isn't Everything (Trust Us) At first glance, this TINY piece of technology may not look like much... But don’t let its size fool you. You’re looking at THE most important technology in the world today... A true “linchpin” that gives life to every other technology modern society relies on, from your phone and computer to your car. But there’s another reason you should know about this tech... In the coming weeks, it’s set to reward fast-moving investors with incredible returns. [Learn how to profit now.]( Sucker's Rally In a recent Bull and Bust Report weekly update, I posed a question: Is this a new bull market or the last chance to sell? I also showed a five-year Nasdaq chart with a 200-day moving average: [NASDAQ 2008] I wrote: The chart shows we are at the top of the range of the downtrend that started in December 2021. You may argue that this is like the spring of 2020 when the market took off. The difference is that back then the government was spending $4 trillion on stimulus bills due to the pandemic, and now it is raising interest rates to head off inflation. In 2020, there was panic and blood in the streets. You’ll remember that members of Congress sold stocks using insider information, the price of oil went negative, and people hoarded toilet paper. If you think about today, no one is panicking. Meme stocks are still launching. There is plenty of stupid money that needs to be washed out. The end of a bear market is marked with low valuations and when blue chip companies pay Warren Buffett ridiculous amounts of money to bail them out. And, most importantly, the Federal Reserve starts cutting rates. The New Emperor of Energy Storage You’re looking at the future of a $3.3 trillion industry. Thanks to this groundbreaking innovation, clean energy can be fed to the power grid 24/7... Regardless of whether the sun is shining or the wind is blowing. I call it the "Newton Battery," and it crushes every other battery on the market. The Swiss and the Saudis are already using it. And grids across the globe will be using this battery before we know it. It’s all possible thanks to one tiny company’s patented tech. The best part is that 99% of investors have no idea that it just went public... [Get in on the ground floor now, before it's too late.]( We have none of the signs of a bottom. There is no capitulation low. The dominant market paradigm is that inflation is transitory, the Fed will pivot and start cutting rates, and the stock market will go back up. This is the lie in the market. In the last inflationary period, inflation topped in 1980 but the stock market didn’t bottom until 1982. When you take into account the Russian war, the EU energy crisis, China’s failed banks, and emerging-markets food and fuel riots, you have a setup for another 50% sell-off in the major markets. I’ve been wrong before, and I might be wrong now. However, the risk-reward scenario is to raise some cash and if we do break higher, just buy it back. No one ever went broke taking profits. All the best, [Christian DeHaemer Signature] Christian DeHaemer [[follow basic]Check us out on YouTube!]( Christian is the founder of [Bull and Bust Report]( and an editor at [Energy and Capital](. For more on Christian, see his editor's [page](. [Fb]( [Li]( [Tw]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Energy and Capital, Copyright © 3 East Read Street, Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-877-303-4529](tel:/18773034529).