I am the first one to admit that astrology cannot predict the future, but that doesn’t keep me from trying. I was not the only one to look at the astrological signatures and predict financial doom in September and October with the eclipse series and the square of Saturn (pessimism and realism) to optimistic Jupiter. Many of us also expected the addition of Neptune to the mix to bring the end (Saturn) of illusions (Neptune).
And it wasn’t just the astrologers – financial experts also predicted a downfall. Bill Fleckenstein, a columnist for CNBC and MSN, wrote:
“The stage is set for some real fireworks, especially since this has been such a straight-up, bulletproof rampage for the last 2 1/2 months. In fact, given how we’ve powered through the large pre-announcement season into an earnings season that I expect to be pregnant with disappointment … (we’re) more ripe for reversal than at any point in time since the fall of 2000.”
Yet the Dow Jones average is soaring above 12,000, London’s FTSE index is trading at a 52-week high, Germany’s DAX is at a five-year high and Tokyo’s Nikkei index closed at a five-month high. The relentless optimism that we’ve seen since Pluto entered Sagittarius and began this reign of financial expansion continues unabated. Writer Alan Hall writes, “A whole thesaurus of words fails to describe the degree of investor optimism.” The stock market increase of the Pluto in Sagittarius era has been fueled by consumer spending and the desire for extravagant lifestyles. Second homes, luxury cars – much of which is funded by equity loans.
Perhaps it is the overarching influence of this compulsive (Pluto) optimism (Sagittarius) that is continuing to fuel the increase in the markets despite sobering financial news. The Federal Reserve decided today short-term interest rates will remain unchanged and that is likely to have a strong effect on the markets. In any event, the underlying climate is still challenging for financial growth and security but could be positive for short-term speculation.