Financial Panics - StarIQ.com

Conventional wisdom says, “You cannot predict stock market crashes.” I agree, but it is possible to make educated guesses, and some educated guesses are more educated than others.

Since 1857, there have been twelve financial panics, and an affliction to the U.S. Mars-square-Neptune has coincided with all but one. If we add this fact to current economic indicators, we have another way to surmise when future panics are likely.

Keep in mind that not every time transiting planets have afflicted the U.S. Mars-square-Neptune has there been a stock market panic. Mundane conditions must also ripen, and the afflicting planets may be within orb for a week or more before the markets crash.

Danger Times

What we can deduce from this is that an affliction to the U.S. Mars-Neptune square signals a danger time when markets are liable to crash if certain economic conditions also exist.

With astrological software, you can peer into the future and make your own educated guesses by doing this: First, erect a chart for the United States, July 4, 1776, then run a search from year 2000 to 2010 for times when Saturn, Mars and Jupiter will oppose the U.S. natal Mars or Neptune. Then search for when Uranus, Neptune and Pluto will oppose the U.S. natal Mars, too, for these periods are likely to mark major turning points.

Pluto’s Slow Sojourn

A financial chart of the Dow Jones average for the twentieth century shows it rises dramatically during the 1980s and 1990s. The Dow reached 500 points in 1952, doubled to 1000 by 1972, then to 2000 by 1989, to 4000 by 1995 and to 8000 by 1997. It took 20 years to double the first time, and only two years to double in the mid-1990s. This pace slowed in the late 1990s.

Bifurcation

The decline in the Dow’s pace was happening as the NASDAQ index set records almost daily toward the end of 1999. Since January, 1996, when Uranus entered Aquarius, the NASDAQ's technological stocks have risen dramatically.

In February, 2000, the Dow and NASDAQ indexes made a definite split, with the Dow trending down and the NASDAQ rising. On March 7, when the Sun moved opposite the U.S. natal Neptune, forming a grand cross with transiting Pluto, the Dow dropped 374 points, 3.7 percent.

The high-techs are likely to continue robust until March, 2003, when Uranus leaves Aquarius and enters Pisces.

The Wild Card is Pluto

This suggests that Pluto is the wild card as this decade continues to unfold. Pluto will linger within range of an affliction (negative aspect) to the U.S. Mars square Neptune for most of this decade, and Pluto is notorious for impregnating what later become major transformations. Besides the technological revolution already underway, we can expect Pluto's trip through this area to leave the financial system changed in some unprecedented way.

Around October 31, 2000, Pluto and Venus in Sagittarius will both be within range of opposition to the U.S. Mars in Gemini, and transiting Mars will be conjunct the U.S. Neptune. Another temporary drop looks likely at this time.

Help From Uranus and Neptune

Through most of 2000, transiting Uranus and Neptune will be making a positive 120-degree trine to Uncle Sam’s natal Mars, indicating the markets are likely to recover from drops.

Yet another quick drop and recovery is possible around the middle of December, 2000, when the Sun and Mercury add oomph to Pluto at 13 degrees Sagittarius, opposite the U.S. Mars and square the U.S. Neptune.

Keep an eye on May, 2002, however, when Pluto will be at 17 Sagittarius, tightening its opposition to the U.S. Mars, while Venus, Saturn, Mars and the Moon’s Node will be conjunct the U.S. Mars in Gemini. By this time, Uranus will have separated from its positive aspect with the U.S. Mars, so the market is likely to surprise us in a negative way.

Defying Logic

Just as the 1990s bull market has extended beyond all expectations, so may the bear market of the new century’s first decade defy logic. As Uranus and Pluto become more involved, we can expect the unprecedented and transformative.

Around February 17, 2003, with Mars and Pluto at 19 and 20 degrees Sagittarius and Saturn at 22 Gemini conjunct the U.S. Mars, a crash is likely.

On May 30, 2005, Pluto at 23 Sagittarius will continue to be opposite the U.S. Mars while Venus at 25 Gemini will move to conjunct it. Simultaneously, Mars at 21 Pisces and the Moon at 13 Pisces will be opposite the U.S. Neptune at 22 Virgo. This grand cross affliction to the U.S. Mars-square-Neptune is very likely to coincide with a panic.

It’s probably a good idea to be out of the market by early 2005 because Uranus flirts with an opposition to the U.S. Neptune during this year. By the spring of 2006, when Uranus is squared by transiting Mars moving through Gemini, the stock markets are very likely to be in big trouble.

Sell and Run

“Buy and hold” has been the battle cry of wise investors for the past 60 years. By December, 2008, Uranus will be opposite the U.S. Neptune, Saturn will be conjunct the U.S. Neptune and transiting Mars will be at 20 Sagittarius opposite the U.S. Mars. Sell and run before this grand cross hits the U.S. Mars-square-Neptune in 2008.

The Bubble and the Gap

When crashes have triggered great depressions in the past, two factors have been in place: a speculative bubble and a new record disparity between rich and poor. Back in the late 1920s, for instance, the richest 1 percent owned a record 36.3 percent of the nation’s collective wealth. After the great depression and World War II, that share dwindled to 20.8 percent. By the late 1990s, it had grown to an unprecedented 48 percent.

Unless these imbalances are aggressively addressed, the last two or three years of this decade looks like a downer for stocks. And this bear market is likely to continue into the following decade.