A 1987 like nonlinear devaluation?
Current Fractal Analysis: End of US trading day 15 September 2022
Global assets including housing are grossly and historically overvalued relative to prevailing total debt loads and prevailing interest rates, the latter which have been increased at a historical pace by central banks to combat consumer inflation which was caused by grossly both too low and too long low of interest rates and by the central bank’s underwriting of mortgage backed securities.
From its March 2020 lows, the valuation hegemonic composite Wilshire (and Bitcoin) qualitatively appreciated to 8 November 2021, at which time both the resulting consumer inflation was evident and the central bank’s required response to that inflation was evident.
Gold’s valuation in US dollars on 15 September 2022 collapsed to a 2 year low. Gold bears no interest, unlike the one year US treasury currently earning 3.8275 % at the end of today’s trading day.
Quantitatively for the Wllshire, a 33/66 week :: x/2x first and second fractal is observable from the March 2020 low ending 24 January 2022. From this low, a 31/72/63 day :: y/2-2.5y/2-2.5y decay fractal is observable. The current 63 day fractal started on 16 June 2022 and consists of a 19//(9/20/18 of ?20) or 19/45 of ? 47 day self-ordering first and second sub fractal series composing the third fractal of the 24 January 2022 31/72/63 to maximum 77 day series.
Is it possible that a 1987 type of nonlinear asset devaluation event will occur over the next 2 equivalent trading days for equities, crypto’s, and commodities including gold?