| | | | TURNMIRE TRADING NEWS MINUTE
Less Money, More Problems…
If you’ve been with us a while, you’ll remember that Jeffy has mentioned discovering the REAL driver of growth in the stock market.
It’s global liquidity.
Basically, the more money exists “out there” in the world… the higher markets go.
It’s like institutions and investors are looking for places to park their excess cash… and the stock market is the place to be.
And it’s not just some casual correlation. He’s pinpointed it as being exactly 98.4% correlated.
But what does that mean? How does the amount of money “out there” grow or shrink?
Glad you asked.
See, global central banks can essentially print money at will. It’s all courtesy of the fiat money system, which is a fancy way of saying money that isn’t backed by a physical commodity like gold, but rather by a government's promise.
It’s been a long, slow process, but throughout the 20th century, several significant events took place which severed the ties between the world’s major currencies and gold.
Today, central banks can — and do — print money at will.
And you can see the results in the stock market: A bullish beast, that with rare exception, has basically gone nowhere but up for over 40 years.
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