Dow hits New 52-week Lows Priced in Real Money

JC Parets
April 13, 2024

The disaster for the Dow Jones Industrial Average continues.

Yesterday the Dow closed at a new 52-week low, priced in "Real" Money.

When you look at the Dow priced in Fiat Currency, it's also acting weak, actually DOWN since the start of February.

Here's what that looks like:

Take a look longer-term so you can really see the difference in returns.

The line up top is the Dow priced in a currency that continues to lose its value. So based on 4th grade arithmetic, if the denominator in the fraction keeps going down, then all things being equal, the line will go up.

But when you denominate the asset in a currency that is not losing its value, with all the government intervention around the world, then the Dow doesn't look so good does it?

The deterioration we've been seeing for most of the year continues.

We'll talk about this further on Wednesday night. Make sure to Register Here for our Mid-Month Video Conference Call.

But keep in mind that things are even worse over in the Nasdaq.

The Nasdaq Composite closed at a new all-time high on Thursday. This was the highest close in the history of the Nasdaq Composite.

Impressive right?

Nope.

When you go and look underneath the surface, and count how many stocks on the Nasdaq actually closed at a new 52-week high, it was almost zero.

I can't even remember a time where an index made new highs but this few components did the same.

It's pretty wild.

And you're seeing the results of this deterioration that we've been talking about for months.

We're expecting this messy market to continue and implementing more Delta Neutral strategies these days.

The Volatility Index is at the highest levels since October. But that's just for the S&P500. When you go one by one and look at the implied volatility for individual stocks, you'll see that volatility has been picking up since February.

As investors, it's up to us to adapt to market conditions.

This year is NOT last year. I've been saying this for months.

You're just seeing more and more evidence that 2024 is NOT 2023. But the evidence has already been piling up for a while.

We'll discuss Wednesday exactly what we're doing about it and how we want to make the most money in Q2.

There's a lot of money to be made, especially when most investors are this offsides.

ASC Premium Members make sure to Register here.

We'll get going LIVE @ 6PM ET Wednesday April 17th.

If you're not already a Premium Member of ASC you can sign up here RISK FREE and join us this Wednesday.

See you in there!

JC

 

 

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