Just one small intricate part of the big long term con game. Let the attentions be directed to the front windows with war, economic, and reactionary games (Civil, Covid, International, Class Warfare, Economy, Cyber, misinformation and misdirection to only name a few), while the money and financial worth (individual power) gets pick pocketed out the back and both sides. All the while, erroneously blaming some other source(s) as the problems to havoc created.
This process has reached a fevered pitch to a point that it will be damaging and too costly to too many. We can all argue (and do) the causes, to many only looking towards mis directions, but the results & consequences are not arguable or debatable once they happen, nor avoidable before they happen no matter who's right on the cause. How one addresses these things is ones only defense. Ignoring, or being led by the orchestrators, and not seeing the big picture will only blow up accounts, both in trading/stocks/etc and in general life. We WILL see many blown up accounts.
Many ways to chart this and observe the divergences and convergences. One example was given recently by Mannarino with the TNX and comparing to a stock index. Although it was a very valid comparison and touched on certain points in certain ways, but in the short time constraints it didn't/couldn't go into all the other comparisons and intricacies that play a part here. But it did show the core of convergence/divergence factors. And there are many comparisons, some better than others for each individual situation, but again most will show the extremes or the forming of an extreme.
Most know about the realities of convergence/divergence in a myriad of technical indicators. Divergence does not go indefinitely, and the longer it does the more dramatic the convergence can or will be (and vice versa). And depending on which indicators your using, it can go into opposite sides (convergence crossing turning into negative divergence). One doesn't even really need to know all the factors in the equations of how those indicators are calculated, but can be assured that the indications are absolute. Timing is the only focus.
Along with other factors (political & environmental forces for example and the Covid War losses I was incurring) I simply looked at the divergence between RE prices and average real income and my own projections to that indication. Sold 95% of all my RE the first quarter of last yr. Some of the same indicators I looked at when most of that prop was created back in 07-09 and when most were totally ignoring the big bubble being created (that is until the bubble popped which was an absolute result and consequence of divergence in reality). We now have a bigger housing bubble than then, along with multiple other bubbles compounding effect in magnitude that is rearing it's ugly head even now. But we haven't seen nothing yet.
Now I've had a few conversations & thoughts about the timing of all that (selling, not buying) given the increase in RE value the last yr, but I remember that I've learned over time that DO NOT try to get the very top or worry about getting the very bottom. A little bit below or above works out better for me anyway. Watch out for catching a fast moving train in any direction. It can really mess one up.
“The markets can remain irrational longer than you can remain solvent.”
John Maynard Keynes
