Tuesday, August 27, 2024

PEAK GLOBAL EQUITY VALUATION GROWTH FROM THE MARCH 2020 LOW : 8-9/24/24 MONTHS :: X/2.5X/2.5X … NOW THE INCIPIENT AUGUST 2024 CRASH

There is an undeniable observable elegance to the simple self assembly growth and decay of asset valuations within the global asset-debt macroeconomic system. The two simple self ordering time-based fractal laws governing all growth and decay of the system’s asset valuations are: x/2-2.5x/2-2.5x/1.5x and x/2-2.5x/1.5-2.5x. On the longest observable time scale in years, the US hegemony is following an 1807: x/2.5x/2.5x/1.5x yearly fractal series of 36/90/90/54 years ending in 2074 with lows in 1843-43 and 1932 and a (global) peak asset valuation in November 2021. This global peak is better understood if one considers inclusion of Chinese property valuation. An interpolated US fractal series started in 1982 (of 13/32 years ending in 2025) commenced with the peak double-digit Volcker fed funds rates which have been lowered in a cascadingly ratcheted manner with near zero rates after the 2009 global property bubble collapse and recently fed fund increases since 2021 to combat inflation caused in the main, by excessive global Covid QE programs. The length of US 3 month Treasury minus 10 year inversion QT program now exceeds the length (and depth) of the inversion leading to 1929. World Equity growth since the March 2020 covid lows have followed an elegant 8-9/24/24 month :: x/2.5x/2.5x growth fractal ending July-August 2024. The monthly sub fractals (following the self-ordering laws defined above) composing the 8-9/24/24 month fractal are shown in the graph below.
The last 10-11 months of the 24 month third fractal of 5/10/10-11 months are shown below in a series of weekly fractals :: 13/30-33 weeks. A 33 week second fractal can be observed to be a 5/10/13/8 week fractal ending 30 August 2024 with week 26 (2x) containing July 16 2024.
The final growth from 28 June 2024 to the peak of 16 July follows a 3/7/4 day :: x/2-2.5x/1.5x growth fractal. A reflexic 4 phase decay/decay/growth/crash decay fractal series of 6/13/12/9 days completes week 8 of the 33 week 5/10/13/8 week fractal series ending 30 August 2024. The July -August 2024 decay will be the beginning of a valuation decay process lasting 12 -15 months with substantial counter valuation growth fractals.

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