This Looks Like the 2008 Stock Market Crash All Over Again

U.S. markets logged their fifth straight week of gains last week, pushing the Dow and S&P 500 into positive territory for the first time in 2016. But despite those gains, the fears of a stock market crash are still very real.

In fact, Money Morning Capital Wave Strategist Shah Gilani says this rally reminds him of the one that preceded the 2008 stock market crash

But one of the greatest risks are global central banks themselves. Many central banks are in full-on easing mode and have slashed their country’s interest rates into negative territory. Major banks like the European Central Bank and the Bank of Japan are two examples. Smaller ones in Sweden, Switzerland, Norway, and Denmark are all also toying with negative rates.

“Central banks continue to manipulate market-moving pawns across a chess board,” Gilani said. “And by pawns I don’t mean economies, I mean equity market prices for banks, bank debt, and sovereign debt. What is surprising is how blatant central bankers are becoming about the manipulation.”

Gilani describes these conditions as an “extend and pretend game as manufactured by central banks.”

According to Gilani, the broader markets will tread lower because global economic growth is anemic, valuations are stretched, and the world is facing a barrage of political and geopolitical uncertainty. Consumer sentiment is also at the lowest level in nine months. Last Friday, the Michigan Consumer Sentiment Index fell from 91.7 to 90. The move, according to analysts, was driven by fears of a weaker economic environment.

And if you take a look back at the data, this situation looks awfully similar to the 2008 stock market crash…

Full article: This Looks Like the 2008 Stock Market Crash All Over Again (Money Morning)

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