What's Happening Right Now

• Slowdown Phase in the economy has begun.

• What is means for Markets.

• What to expect next.

• Biggest issues currently facing the economy.

• Now is the best time to begin or resume learning about markets and the economy.

Economy has entered the Slowdown phase.

The most up to date economic data tells us that the economy has entered the Slowdown phase and is now firmly on the backside of the current Credit Cycle.

Over the coming 12-18 months you can expect the trend of deteriorating economic conditions to continue as higher interest rates and decreasing access to credit increasingly takes its hold over the economy.

This is all by design, and contrary to low-information pontificators, it’s a good thing and helps protect us all from ourselves.

The best part is that if you are aware of what is happening, you can take steps to benefit from the changes. It seems difficult and can be impossible on your own while you juggle day-to-day responsibilities. However, with a little bit of guidance it becomes achievable.

Easy? Hell no.

But certainly manageable with the help of informed insights along the way.

How can I be so sure? Because the same damn thing happens every time and has done so for hundreds of years. Only now we all have access to the data needed to stay up to date.

What the Economic Slowdown phase means for Markets.

While stock markets typically begin to experience increased volatility at some point during the Slowdown, they also typically continue to hit new highs. However, the concentration of higher performers is smaller than during times of Recovery and Expansion where economic tailwinds can shield novice traders and investors from mistakes.

Therefor, it is now more important than ever to have a plan based on experience. This current moment in time is when you will begin to see the separation between those who know what they’re doing and those who pretend they do for clout and clicks. It is for that reason why now is one of the best times to take your understanding of markets and the economy to the next level as it will help you filter out the pretenders. In doing so you will have more time to focus on the real ones discussing the economy and markets in the future, which will drastically accelerate your learning curve.

What to expect in the coming 12-18 months, or so…

• Markets will continue higher.

• Volatility will begin to trend higher at some point.

• Crypto will continue to put in new highs.

• Longer-term (Quarterly) Economic data will continue to deteriorate.

• A ton of complaining and doomsday BS out of the same negatively minded folks that always think the economy is on the verge of collapse.

• Higher frequency of “Perma-Bull” labels for people that have been right since Oct ‘22 coming from those who refuse to put in the work or keep an open mind to all possible outcomes.

• Higher frequency of dumbass phrases like “This isn’t going to end well.” and “Oh. So, you’re saying this time is different.”

Biggest threats currently facing the economy.

• The foremost threat to the economy at the moment is another round of higher rates of inflation caused by worldwide shipping issues. If this is going to happen, it will more than likely arrive this coming Fall.

• Commercial Real Estate repricing leading to a liquidity crisis. If this is going to happen, then it more than likely does so in 2025.

Now is the best time to begin or resume learning about markets and the economy.

Ultimately, if you have ever been interested in learning about how the economy operates in a trackable way and/or partake in markets, this is the best time to begin the journey.

That doesn’t mean it’s the best time to begin trading and/or investing. It means it is the best time to begin learning about the system so that you are prepared at the best and “easiest” time to begin.

If you choose to do so, it will become one of the most enlightening experiences of your life and you will be better off mentally for the rest of your life. Why? Because you’ll know what to expect, when those expectations change (if they do), and most importantly you will be able to make actionable plans to protect yourself and your loved ones.

Few things in life are this important.

Where else to find me for more real time thoughts.

If you would like to follow my thoughts about the current state of the economy in real time and follow along with my thought process through some trades, you can do so on X/Twitter at @ntomas67 and on StockTwits at @ntomas67. (Click here for a StockTwits referral if you do not already have an account.)

You will currently find me tracking and posting about Bitcoin, $SPY, $TKO, RKLB, $ENVX, $JMIA, $SMR, $MARA, $PLTR, and more. As well as more thoughts on the economy, and of course some shit-posting on bad and/or misleading information. But hey, I’m a product of the 80s and 90s and grew up on the WWF/WWE, so it comes naturally.

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Click the Leave a comment button if you have any questions or comments, or need something clarified. Don’t be shy. The main point of “The Rhythm of the $ystem” is to improve constantly. Questions and comments help us both.

If you are new to The Rhythm of the $ystem, go ahead and check out the beginning of the series where I introduce The Economy Tracker. Doing so will help you better understand the information in this post:

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