Daily Stock Market Update. May 5th, 2014. InvestWithAlex.com

An up day with the Dow Jones up 17 points (+0.11%) and the Nasdaq up 14 points (+0.34%).

I continue to be amazed how/why the majority of market participants relate fundamental economic growth to the future of stock market performance. Case and point……

Investors would be best served by not selling in May, according to Morganlander. “I would say that would be bad advice,” Morganlander said. “You’re starting to see a string of good economic numbers. In fact, I believe that over the coming couple of months, you’re going to start to see the housing market click in as well. That’s going to bode well for the overall markets. You just need to get through this geopolitical concern.”

Such thinking is absolute garbage that has no place in the real world (assuming that you like making money and not losing it). To prove my point, allow me to take you back to October 11th, 2007. The GDP growth was 4.9%, full employment, the stock market was on fire and while the real estate market was showing signs of a roll over, it wasn’t that bad. In a nutshell, economic future looked as bright as it could be.

Yet, the stock market topped out on October 11, (exactly 5 years and 1 trading day from its 2002 bottom) and then proceeded to decline. Slow at first, picking up speed mid cycle and subsequently destroying everything and everyone. There was no fundamental catalyst. Was it possible to predict? I did, but if you were looking at the market from a fundamental perspective you would have never seen it coming.

This is the perfect example why its the stock market that drives the economy and not the other way around. Which brings us to today. Based on our mathematical and timing work the bear market of 2014-2017 is just around the corner.

When it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here).

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