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One of the primary indicators that we are experiencing times of profound change is the way basic assumptions about the world we live in that have for generations been taken for granted are now being revealed as fantasy. What are the implications of this transformation for the S&P500?
For example when the FED entered the bond market in early 2020 Zero Hedge’s own Tyler Durden rightly pointed out the act ended of the myth of free markets. How are markets free if the FED is always covering your back? Blackrock immediately understood the new rules of the game and forsook its own quantitative analysis, publically declaring it would buy whatever the FED was buying.
So if these times are characterised by a roll-back of illusions that until recently have been the basis of our lives by what does that say about the soundness the S&P500 as an investment?
For example what happens to the risk profile of the $5.6 trillion Healthcare sector as more investors take an interest in the history of virology?
What happens to the price earnings ratio of Toyota or Tesla as investors realise that auto makers are dealing with antiquated technology? Last year at a talk in Santa Monica Dr Stephen Greer reiterated that we mastered gravity in October 1954 and made our first trip around the solar system in a man-made flying saucer a month later.
What happens to the $2.9 trillion Consumer Staples sector as men and women discover the main cause of their cancer, diabetes, heart disease, arthritis and most other chronic degenerative disease can be traced back to the processed food they eat? One in four Americans now has diabetes. One in three can be expected to have cancer in their lifetime.
The S&P500 Energy Sector has a market cap of $1.7 trillion. How long can the suppression of zero-point energy devices continue? The first recorded instance of free energy was a demonstration at the Stubblefield Farm in 1902 where Nikolai Tesla was in attendance. Despite the suppression of systems that draw energy from the quantum vacuum the inventions keep coming. The Holcomb Energy System is a current example.
In other words foundational beliefs of mainstream society are increasingly untenable for an ever growing section of the population. This has a profound impact in the viability of many constituents of the S&P500. The business models of these companies only make sense if the tenets of the illusion we have until now been living under remain intact. There is no indication this is taking place.
In fact the trend is accelerating in the opposite direction.
The S&P500 is one investment which demands reappraisal in the light of this global transformation.
The transformative journey of our time