China announced that it had no new cases (excluding imported cases) of COVID-19 yesterday and the 13-week US Treasury Bill index (IRX) interest rate fell to 98.18% to 0.003%, within rounding of zero percent interest. The 5-year and longer treasure yields all rose as the US dollar and liquidity are now precious assets. March 18th was another volatile day for stocks. AAPL hit a low of $237.12, only a few dollars above the then all-time high of $233.47 that I blogged about in 2018: AAPL Stock Prediction for Oct 3, 2019. More interesting, the NASDAQ closed at 6989.84, below the 7560 prediction I felt “more than 50%” confident about in Aug 2018: NASDAQ Composite Index prediction for March 9, 2019. It’s interesting that I made that prediction for 2019 and it is now true in 2020. The NASDAQ actually fell below 7560 almost a week ago on March 12, 2020. Oh wow, I’m going back to look at 2019 and the NASDAQ on March 12, 2020 closed at 7591.03 and was 7505.92 the week before. So, very close to 7560 on March 9, 2019. Interesting! What I wrote back in August 2018 seems quite synchronistic to me now:
I’m feeling a universe where it is possible for me to sense large changes in the financial markets before they happen. In this universe, I’m sensing a large change in the negative direction occurring either between October 5th and October 19th, on November 9th, or between December 26th and January 19th, 2019. Based on this, I sense that there is a greater than 50% chance that on March 9, 2019, the NASDAQ Comp will be lower than 7,560, the value it was on March 9, 2018.
I’m more curious about why I feel compelled to make this prediction. Only the future knows.
“Feeling” the direction of the market is risky business. If you were to ask me to feel the market now, I would likely stay with safe bets all based around the belief that a year from now, the US dollar will be of relatively lower value compared to other fiat currencies and precious metals. Partly because of this, and partly because the stock market has taken a beating due to the coronavirus pandemic, the NASDAQ, SP500, and most publicly traded stocks will be of higher value, priced in dollars, than they are now.