Over the past year, I and other astrologers have warned of the upcoming collapse of what I have called the Relentless Optimism of the Pluto in Sagittarius period. Back in May, I wrote:As predicted in this column, stock markets around the world rallied in April with US stock funds rising nearly 5% in that month following Pluto's retrograde turn as it heads back into Sagittarius. The Sagittarian optimism that has fueled overspending, overborrowing, overinvesting, and a drastic increase of home sizes and prices sank into despair when Pluto first entered Capricorn in January.
As Pluto retrograded back through Sagittarius, money writers weren't sure whether to fall on the side of the bulls or the bears but astrologers knew that the end of the expansion was just a matter of time.
Some financial analysts are agreeing with astrologers, calling this a "Sucker's Rally."
Jean-Marie Eveillard, who runs the $US22 billion ($23.5 billion) First Eagle Global Fund, is skeptical the gains can last because the worst housing slump since the Great Depression will reduce earnings. S&P 500 companies are valued at 22.7 times profit, the most in four years.
Options traders are paying 63% more to protect against a drop in the S&P 500 than to bet on a gain, the widest difference since at least 2005.''It may be a suckers' rally,'' said Eveillard, who is based in New York. ''Investors want to believe. But if I'm right, then there's truth to the argument that this is the worst financial crisis since the end of World War II. The same kind of reflex is the wrong reflex.''
Pluto changed direction on the 9th, and immediately Fannie Mae and Freddie Mac, the vehicles through which America mortgaged its security to pay for its lifestyle, were taken over by regulators. Shortly thereafter several banks failed, and today we have the bankruptcy announcement of Lehman Brothers and the fall of AIG, an insurance giant who was heavily invested in mortgage instruments.
Sagittarius is the sign of expansion and optimism, and Pluto's travels through Sagittarius brought with it an optimism that seemed to be endless. The stock market would forever go up, home prices would forever inflate, and all you had to do was borrow as much money as you can to fully leverage your lifestyle. Capricorn is the sign of the reality check, and Pluto entered Capricorn back in January, bringing the first taste of that reality check. The US chart has Sagittarius rising, and optimism is our middle name. We don't like the hard work and discipline that Capricorn requires, and Pluto in Capricorn will be difficult for Americans.
Capricorn is the sign of social structures: government, the banking industry, structures that keep society held together. Pluto through Capricorn can create breakdown in these areas if they are not serving the purpose for which they are intended. Pluto has no patience for silliness or illusion. Read more about this cycle on my website.
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Thank you for that feedback Great Prediction! I'm at the Blast Astrology conference this weekend where I'll be taking a workshop with Ray Merriman on financial astrology. I can't wait to report what I learn!
I was prepared as much as I could be for this week's 'adjustment' but then anyone worth their salt who knew anything about astrology knew that once Pluto went direct last week, it was not going to take any hostages as it began to march Sag. It has not been pretty and it is certainly not over. So, yeah, we have not hit bottom.
But here is the thing that I was not prepared for and I can't believe I didn't think of it before... I am coming across more mean spirited people than I have ever have in my life. Not just at me but at other people around me. It has been two weeks of mindboggling dark meanness. I keep thinking when I see it.. "ooo how ebenezer scrooge of you.' Which feels so Capricorn.
Here's one case where I was really glad to practice astrology. Like Lynn, I knew that Pluto moving into Capricorn would bring a "grounding" of the fiery Sagittarian energy that's been around for 13 years. And that grounding would translate into a plunge. And so when it began in ernest, I sold most of my equities and am not in insured vehicles.
We still have over a month before Pluto enters Capricorn -- November 26th. And somewhere in that area the market should hit the ground with a large thud. It could be anytime between now and not too long after that date -- (having to do with collective unconscious and how it relates to astrology.) Any body want to make a prediction what the "ground" is? Maybe where the market would have been if it had had a conservative growth period over the past 13 years of Pluto in Sag -- say somewhere in the 6% range --- which would make it around 7500 to 8500....?
This is amazing to watch. People may not believe in astrology -- but it certainly believes in them!
Make that "NOW in insured vehicle..." ...lol.
Gaiamuse, that's an excellent way to predict the floor of the stock market, and it coincides with the 7400 figure that Ray Merriman gives. I've been predicting doom for the stock market since Jupiter squared Saturn last year but I underestimated the impact of Pluto in Sag optimism. That optimism kept the market inflating while the fundamentals (Jupiter square Saturn) contracted. This would probably make a good post!
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