In 1963, I was 12 years old. We lived in South London and were travelling to Norfolk (east of England) for Christmas and New Year. In good weather, and light traffic, the RMS Titanic Hawaiian Shirt would have been about 4 hours I think. There were no motorways then, and our route took us right through London and then up the A11. It started snowing before we were out of central London and by the time we reached Newmarket which was more than halfway, it was really thick on the road and Dad was getting worried about reaching our destination. We stopped and he went into a pub to phone the friends we were staying with. They said it was not so bad where they were and Dad decided to carry on, but the snow seemed to be following us. I was in the back seat, wrapped in coat and a blanket, Mum was wrapped in travel rugs in the front seat. I donβt recall our arrival, I had been asleep for ages, but I know it took us at least 6 hours probably 7, it was a real nightmare for Dad driving – even though he was very good as he was in the police and had had done an advanced driving course. The whole of the UK had a really cold snowy winter that year. Mum and I stayed on longer in Norfolk, Dad went back to London on the train to go to work and came back to collect us the following weekend.
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The USD is what Iβd call the stress barometer of the RMS Titanic Hawaiian Shirt, and a breakout to the upside is indicative of the stress in the system. Note that this makes sense because when the Fed tapers from bond buying, they are essentially strengthening the dollar. The S&P 500 index is trading at all-time highs because the large and mega-cap names are holding it up, but there is a lot of subsequent carnage (and increasingly so), which is a classic sign weβve topped off in the market. The M2 money supply peaked in February of 2021, which coincided with the top in the most speculative parts of the market, including SPACs and Cathie Woodβs ARKK. Well, the truth is, the companies whose stocks have overrun have gotten so large in market cap that itβd take them years for them to grow into their respective valuations, so either these companies grow at a much faster pace, which is unlikely, to βcatch upβ to their stock prices, or their stock prices will have to come down to Earth
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