Dow Bubble is About to Burst, How to Capitalize and Prosper While Most of America Suffers

In year 2000 when the Dow Jones reached a new all-time nominal high of 11,723, NYSE margin debt reached a new all-time high of $278.53 billion or 2.78% of U.S. GDP. Afterwards, the Dow Jones declined 37.8% to a low in 2002 of 7,286, as NYSE margin debt declined 53.3% to a low in 2002 of $130.21 billion or 1.18% of U.S. GDP.

In year 2007 when the Dow Jones reached a new all-time nominal high of 14,165, NYSE margin debt reached a new all-time high of $381.37 billion or 2.62% of U.S. GDP. Afterwards, the Dow Jones declined 53.8% to a low in 2009 of 6,547, as NYSE margin debt declined 54.6% to a low in 2009 of $173.3 billion or 1.2% of U.S. GDP.

NYSE margin debt is now up to a new all-time high of $464.31 billion. NYSE margin debt is currently equal to 2.68% of U.S. GDP, which is the mid-range of its previous peaks from years 2007 and 2000 of 2.62% and 2.78%, respectively!

Over the last 56 years, NYSE margin debt has averaged only 0.95% of U.S. GDP. In fact, during the 1970s when inflation nearly spiraled out of control, NYSE margin debt averaged only 0.41% of U.S. GDP. NYSE margin debt is currently 2.82X its long-term average and 6.54X its 1970s average (as a percentage of U.S. GDP).

NIA considers it to be a 100% sure thing that as interest rates rise, NYSE margin debt as a percentage of GDP will plummet. NIA predicts that over the next 2-3 years, NYSE margin debt will decline back to its long-term average of 0.95% of U.S. GDP. This means (based on current U.S. GDP) NYSE margin debt will need to decline by 64.6% to $164.3 billion, which will cause the Dow Jones to once again make a very dramatic downward correction.

Interactive Chart of NYSE Margin Debt

In Dollars and as a Percentage of U.S. GDP

As the Dow Jones collapses, precious metals and the stocks of gold/silver exploration/mining companies will skyrocket. Agricultural commodities will also rise substantially. Perhaps the biggest gaining commodity in the short-term will be graphite, due to Tesla (TSLA)‘s new $5 billion battery Gigafactory that is about to be constructed (most likely in Nevada). TSLA is expected to purchase all of its graphite from North American graphite mines, but very few are currently in production.

In NIA’s opinion, the stocks of some North American graphite explorers with near-term production potential could soon gain 1,000% or more. For NIA members looking to capitalize on and prosper from TSLA‘s about to be constructed Gigafactory and the imminent perfect storm for skyrocketing graphite prices – NIA is getting ready to soon announce its #1 North American graphite stock suggestion!

Please Share this Extremely Important Article with Your Friends, Family Members, and Co-Workers

Comments 10

  1. I every time used to read piece of writing in news papers but now
    as I am a user of internet therefore from now I am using net for articles or reviews, thanks to

  2. My wife and i ended up being satisfied Michael could finish up his investigations using the precious recommendations he grabbed through your weblog. It is now and again perplexing to simply find yourself giving freely solutions that many some other people have been making money from. We really remember we have the blog owner to appreciate for this. The most important illustrations you have made, the simple website navigation, the relationships your site assist to engender – it is many fabulous, and it’s leading our son and us know that this subject is enjoyable, and that’s highly mandatory. Many thanks for all the pieces!

  3. Ive in no way read anything like this prior to. So nice to find somebody with some original thoughts on this subject, really thank you for starting this up. this site is some thing that is needed on the net, somebody having a little originality. useful job for bringing some thing new to the internet!

  4. After I initially commented I clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I get four emails with the identical comment. Is there any manner you may remove me from that service? Thanks!

  5. There are some fascinating deadlines on this article but I don’t know if I see all of them center to heart. There may be some validity however I’ll take hold opinion till I look into it further. Good article , thanks and we wish more! Added to FeedBurner as well

  6. Pingback: Google

  7. Pingback: Google

Leave a Reply

Your email address will not be published.