Economy & Investments

Mike Galiga: The Dow Will Hit 30,000 Before 2020

Last week we saw the unlikely headline blazing across the airwaves that the Dow Jones Industrial Average had hit 20,000 for the first time in history. Soon after the record was broken there began a massive selloff of stocks leaving many to speculate about the future of the market and whether it was a flash in the pan. And unsurprisingly the naysayers jumped in front of the cameras to decry false flag confidence in a new White House run amok.

But there’s much, much more going on here than simply a market responding to the political intrigues du jour. That there was a selloff of stocks was nothing more than investors taking profits on the massive growth in stock prices. And there was plenty of profit to be had. This happens nearly every time we see a steep peak in the market. And of course the same thing happens in reverse when we see a massive downturn in prices: a buying freezing while stocks are “on sale.”

I have a bold prediction to make: the Dow will hit another massive record of 30,000 within 24-36 months. And here’s why. The fundamentals underlying the growth of the American market have far less to do with the change in administrations and quite a bit more to do with what’s happening in the global financial system. That Donald Trump’s policies appear to the average investor to portend growth in GDP is merely gasoline on the fire.

So what’s the fire? Take a look at what has been happening for several years and increasingly so in the last couple. China and other major players in the Asian sector are buying up American assets as fast as they can. Why is that? And investors in the Eurozone are doing the same thing. Meanwhile, foreign money is flooding into American funds to such a degree that fund managers are scrambling to find investment vehicles for those dollars in order to hit their required ROI numbers. All of it has a single explanation.

 

SPY
 

Both the Asian and European sectors are drowning in national debt and are on the brink of insolvency. The Chinese stock market dropped more than 40% just last year. And Japan is upside demographically and cannot manage its national debt. And with Brexit as the cherry on top, the near bankruptcy of Greece, Italy and Spain is threatening to drag down Germany and France beyond recovery. This means foreign investors are fleeing those markets for higher ground in the U.S.

That global reality more than any one factor is what’s driving the Dow and other indices up and up. And since there’s nothing on the horizon that might forestall the continued fall of the Asian and European markets, investors will continue to move money into the U.S. markets.

What this means is that money will continue to seek new investment opportunities in much the same way it did in the early to mid 2000s when low interest rates made debt very cheap. And those new investments will fuel additional speculation and growth in virtually every sector.

Between now and the mid-term elections, we should see very high peaks and relatively low valleys as stock prices continue to move toward record levels again and again. It will not be a straight line up to these records, as there will be volatile swings- especially as our new president and the Republican houses call for and drive significant change. As with all change, there will be big winners & big losers. Therein both bulls & bears should find quick-hit, BIG profit opportunities buying shares of stock or call options and selling stock short or buying put options. Those positioned for such volatility should do really well… even on the seemingly (market) down days.

Of course global instability — a major terrorist attack, for instance — could always threaten and delay the march to new records… and bring their own volatility into the markets. But global megatrends like this one are difficult to derail. And that means huge profits are in store, both on the rise and on the fall of the prices as we climb evermore toward DOW 30,000.

–Mike Galiga

Mike would love to hear from you, including the investing & economy topics on your mind right now (so he can address them in upcoming articles). Email your thoughts or questions directly to him at: mike@mikegaliga.com

Stock & options trader Michael Galiga’s trading expertise is built atop a confluence of unique life experiences: working with Sam Walton (yes, that Sam Walton), piloting Cessna turboprops, being a Major in the USAF Auxiliary and graduating law school with only $11.70 in hand. From humble beginnings to American dream successes… in bull, bear & flat markets… he’s seen- and done- it all. He’s cultivated his impressive stock & options-trading skills on a unique blend of fundamentals & technicals, plus a generous layer of the wisdom-driven art of trading to grow the wealth of his followers.

Read More...

Economy & Investments

Mike Galiga Joins Conservative Alerts as Economic & Investments Adviser

Investing and economic guru Mike Galiga has been leading headlines in recent weeks with his predictions on what to expect in the coming weeks and months in global economic and market events. And reader feedback has been off the charts, with requests for more, more, more! We hear you loud & clear. So now we’re overjoyed to formally announce that Mike has agreed to join CA as an adviser and in-house writer on all things financial, investing and economic.

Mike’s expertise is built atop a confluence of unique life experiences: working with Sam Walton (yes, that Sam Walton), piloting Cessna turboprops, being a Major in the USAF Auxiliary and graduating law school with only $11.70 in hand. From humble beginnings to American dream successes — in bull, bear & flat markets — he’s seen and done it all. He’s cultivated his impressive trading skills on a unique blend of fundamentals and technicals, plus a generous layer of the wisdom-driven art of trading to grow the wealth of his followers.

Mike has an uncanny ability to see seemingly unconnected geopolitical events before they happen and predict how those events will affect world markets, the balance of global financial networks and the impact they have on the every day investor.

His insight has proven critical for major players around the world and here in the U.S. Mike is a master of using stock & stock option positions to make money whether companies or indices are rising or falling. While the bulls among our readership may have a good sense of how to make money as a stock rises, it is sometimes surprising to learn that equally good profits- and even superior gains- can be made in falling stock prices too. Mike is excellent at helping his followers make money in either scenario.

Mike says: “As our new President & Congress continue to implement change, market volatility should be expected. There are going to be big winners and big losers in the 2017-18 markets. Select stocks are going to roar higher, while others are going to get knocked down as new policy and policy change realizations shake the markets. Stock investors & traders on the right side of such trades are going to make a lot of money in the next few years. Options traders using leverage on those same moves are going to make many times more. For smart investors, these should be superior years to build wealth. And I look forward to sharing my knowledge & experience with the Conservative Alerts readers in the coming year.”

We’re ecstatic to have Mike join our team in this very popular capacity. If you have some economic or investing questions for Mike, ask him at: mike@mikegaliga.com. Questions of broad interest to our followers will likely be addressed in future editions. Help us welcome Mike to the team! And enjoy his contributions in upcoming issues.

Read More...

Economy & Investments

Boom: Trump Plans to Approve Keystone, Dakota Pipelines

President Trump indicated he would soon sign more executive orders in the coming days, a few of which will finally give green lights to the Keystone and Dakota pipelines.

These are both massive projects that will expand domestic energy independence and create new jobs. Obama stonewalled them up to the very end.

Here’s more from Newsmax:

President Donald Trump intends to sign two executive actions Tuesday that would advance construction of the Keystone XL and Dakota Access pipelines, according to a person familiar with the matter.

Keystone was rejected under former President Barack Obama. Trump’s move on Energy Transfer Partners LP’s 1,172-mile Dakota Access project aims to end a standoff that has stalled the $3.8 billion project since September, when the Obama administration halted work on land near Lake Oahe in North Dakota.

The moves, taken on Trump’s fourth full day in office, mark a major departure from the Obama administration’s handling of the controversial oil pipelines. The steps vividly illustrate Trump’s plan to give the oil industry more freedom to expand infrastructure and ease transportation bottlenecks.

Read More...

Economy & Investments

Galiga: Trump Comments on U.S Dollar Could Signal Major Shift

d19e7a0c-76c5-4980-bbbd-ab1ba2ceab27On the eve of his inauguration Donald Trump made a pronouncement that did not get as much play in the media as it should have, likely because scuffles via Twitter with the media and recalcitrant Democrats won the headlines.

In a recent interview with the Wall Street Journal, Trump declared the U.S. ‘dollar is too strong.’ It was a nuanced statement about his monetary policy that revealed quite a bit more about the future of the world economy and how President Trump will deal with trade and monetary imbalances that have plagued the West for over a decade.

Finance and trading expert Mike Galiga unpacked the statement and projected what he thinks it may mean for the U.S. economy and specifically for investors in 2017.

“For years now China has been deliberately devaluing its currency both to bolster the Chinese stock market and to maintain the upper hand in the trade deficit,” detailed Galiga.

“What it means is very simply this: China can manufacture all sorts of things much cheaper than any other nation in the world, which gives it a competitive edge. This means they can export much more than they import because their goods are cheaper than everyone else’s.”

Donald Trump made China a favorite whipping boy during the presidential campaign arguing that, if elected, he will work hard to force China to stop its currency manipulation.

Should he do that, explains Galiga, there could be very serious implications for the U.S. economy and for investors. “With his ‘dollar-too-strong’ comment, Trump could be signaling that intends to counter-punch China by intentionally weakening the U.S. dollar to make us more competitive. And that means rising interest rates and prices.”

Strong dollar-01_0

“It also means a potentially devastating hit to the Chinese economy both in terms of the trade imbalance and in terms of domestic manufacturers should Trump make good on his threats to impose sanctions or import taxes on Chinese goods,” continued Galiga.

“This means investors heavily leveraged in the Chinese market will likely follow the exodus of investors from the rest of Asian sector and from the Eurozone toward the U.S. stock market. This would likely further inflate the U.S. stock bubble.”

Galiga explained that, in addition to opportunities to short the Chinese stock market, investors could see growth opportunities in U.S.-based manufacturers and simultaneous short opportunities with U.S. retailers who are heavily reliant on the import of Chinese goods.

Whatever Trump’s intentions really are, it is likely they will become very clear in short order as he continues to pressure Congress to act on many of his agenda items within the first 30 days of his administration.

Read More...

Economy & Investments

Galiga Predicts Massive Stock Records During Trump Era

Last week we shared reports from economic experts who are predicting a major global economic collapse in the near future due to unstable financial systems and over-leveraged central banks in the developed world. Though no one can know with certainty when such an event might occur, there are telltale signs based on what might precede it.

screen-shot-2017-01-05-at-12-49-48-pm

Financial guru Mike Galiga offers an example of what some of those telltale signs may be. Explaining that foreign investment dollars are increasingly flooding into the U.S. markets, he details that the seeds both of a potential global collapse and a massive U.S. expansion are being sewn.

Detailing this scenario, Galiga advised, “Foreign assets are flying into the U.S. with unprecedented speed. Europe, India and all of the Asian sectors are seeing an exodus of investors who are seeking safe harbor for their dollars.”

That would explain some of the recent spikes in the Dow Jones and other indexes, continues Galiga. The renewed confidence in the White House ahead of Donald Trump’s inauguration will likely continue to pour gasoline on investors’ confidence in U.S. markets.

Galiga went further with an even bolder prediction: “If conditions in the Eurozone and Asian markets continue to flounder — and there’s very little evidence that they won’t — we could see the biggest expansion in the American economy in history. That may mean the Dow’s recent record will be utterly eclipsed by much larger records.”

He detailed that the Dow could see a high-water mark of as much as 30,000 points or more by 2020. However, he warned, that is the bubble that will presage a massive collapse in the U.S. market, which would cause a global domino-effect.

Galiga echoes recent comments concerning the fundamentals of the economy still being absent after the 2008 Great Recession. “There will always be bubbles in the global economy. They’ve been occurring for millennia. The only uncertain question is when and how big. But the pin that will prick the next global bubble is already there. Debts being amassed by central banks and by consumers are reaching entirely unprecedented levels, and that debt is totally unsustainable,” he warned.

The takeaway, Galiga advised, is that the boom and bust cycle of the global economy will continue and that opportunities to grow and protect wealth are huge for those who see the signs ahead of time. The expansion of the Dow to 30,000 in three years alone presents investors with an opportunity to more than double their money if placed in the right sectors.

Read More...

Economy & Investments

Could Another Great Depression Be On the Horizon?

More than a few economic experts have increasingly warned that a second Great Depression is distinctly possible in the near future despite the positive economic growth and optimistic attitudes ahead of the Trump administration. But how would that transpire?

Most national and global financial crises have historically been the result of economic bubbles that ballooned over a relatively short period of time before bursting under intense financial pressure or when an underlying industry or market begins to weaken.

That was certainly the case in the 2008 crash of the housing market when the real estate bubble burst after the overheated stock market, driven largely by corrupt financial institutions and speculative derivative investments, began to fail. That story was told well by the blockbuster movie The Big Short.

The problem with the global economy, explains investment guru Mike Galiga, is that the fundamentals of the failed economy during the Great Recession were not fully addressed. Attempts by the federal government, like Dodd-Frank, didn’t help much and in some cases actually made the problem worse.

Galiga further details, “Fast-forward nearly a decade later and those problems are still with us. But now we have a situation much, much worse than we saw in 2007.”

Referring to the unstable financial status of many Asian and European central banks, Galiga continues, “The media isn’t reporting some of the most critical economic stories around the globe like the fact that the Chinese stock market lost 40% of its value in a single year; that with Brexit and the indebtedness of Greece, Italy and Spain, the European Union cannot sustain itself much longer under German economic strength; that central banks around the globe are leveraged to the hilt.”

Galiga points to the recent spikes in the American stock market and the probable rapid growth as the surest sign a perfect storm is on the horizon. “The money that is behind the resurgence in the American economy is coming from all the foreign investment fleeing Asian and European markets. Essentially what we’re seeing is all bets being placed on the U.S. economy. But what if the U.S. economy fails? Complete global meltdown, that’s what.”

The question isn’t so much whether this will happen, but if Galiga and other economic experts are correct, it’s only a matter of when.

The good news according to Galiga, however, is that lots of wealth can be protected and even increased if investors are smart about how they look for the fundamental signals in the market, prepare for quick action and make moves decisively. Many of the biggest names, for instance, in American economic history were made as a result of massive economic downturns.

Those financial powerhouses were made by riding the wave of key markets as they rose during the bubble period, then by shorting those same markets just before the bubble popped. It created fortunes in 2008, and it will happen again.

Read More...

Economy & Investments

Galiga: Major Oil Boom Set for 2017, Reverse of Fortune

For Americans in oil producing states and those with supporting industries life has been a tough road as oil prices dropped from a high of over $125/bbl just a few years ago to the lowest point in decades at nearly $25/bbl last February. That’s a 500% swing in just eight years and is enough to crush most industries.

But history has shown with oil — as with most commodities — that what goes down must come up. And with the recent changes in the global market, it appears history is proving predictive once again.

Trading guru Mike Galiga argues that the oil market may provide some of the best opportunities for stock profits in recent memory. According to his analysis, most traders were shorting oil as the production glut continued after OPEC repeatedly refused to cut its supply.

 

api-asp

Oil prices busts in the last 10 years

 

But the financial hit that U.S. oil producers took in the fallout also hit members of OPEC. For example, Saudi Arabia burned through several hundred billion dollars in revenue reserves to ride out the wave. The result has been a massive reduction in global supply along with an unexpected spike in demand, largely in the Asia sector.

Galiga also points to the fact that nearly every trader who maintained a short position in expectation that oil would continue to drop has now converted to a long position. He explains, “There is now a higher percentage and larger absolute number of long positions in crude oil than at any other time in recent memory. What does this mean? The big boys expect the price to rise – my expectation is $61 per barrel in the first quarter of 2017.”

If Galiga is right — and he nearly always is — that represents more than a 100% gain in price since the low nearly a year ago. Historical charts appear to proving Galiga’s prediction correct.

 

Every major drop in commodity price has been follow by a steep recovery

Every major drop in commodity price has been follow by a steep recovery

Read More...

Economy & Investments

Trading Expert Points to Pitfalls in Post-election Market Spike

d19e7a0c-76c5-4980-bbbd-ab1ba2ceab27Leading up to the 2008 housing market crash, the economy was soaring led by over-valued real estate and credit default swaps being traded in the hundreds of billions on the global stock exchanges. A similar ‘market bubble’ could be on the horizon.

Among the potential bubbles stock trading guru Mike Galiga refers to are the deluge of foreign investment dollars flowing into the U.S stock market as foreign exchanges continue to struggle. Another bubble he sees forming is the massive wave of student debt in the U.S. that is increasingly unsustainable.

Galiga argues that certain telltale signs could present some massive profit opportunities even to amateur investors who know what they’re looking for. Here are just a few examples he points to:

 

Chinese auto sales are down sharply over the last eighteen months and are approaching an historic low.

china

 

U.S. student load debt has seen an exponential increase in the last few years.

student-loans

 

Japan has overtaken China as the largest buyer of U.S. debt as the Chinese yuan continues to fall.

foreign-investment

 

Galiga revealed, “Keeping an eye on key indicators in the economy, investors can forestall massive losses and even see significant profits.”

Galiga detailed that there are many factors pulling on the global economy right now, including a possible rate hike by the Fed, declining economies in the Asian sector, Brexit and near-defaulting members of the EU, and other factors.

Read More...