Today, additional evidence that recession — or worse — is in sight.
But first, it appears the “Powell put” may extend the countdown clock…
Since Jerome Powell’s dovish comments on Friday, the Dow Jones has been up and away… as an addict thrills to the promise of additional stimulant.
It leaped another 256 points today. Continue reading
Bloomberg
‘From a markets perspective, it’s going to be interesting. There probably will be some really scary moments in corporate credit.’
Paul Tudor Jones, a hedge-fund luminary, said he’s stress-testing his portfolio of corporate debt because he expects a tumultuous road ahead on the back of the Federal Reserve’s apparent commitment to normalizing interest rates and buttressed by corporate tax cuts from the Trump administration. Continue reading
In 2016 Steve Bannon, President Donald Trump’s former chief strategist, declared that there was no doubt, in his mind, that the US would go to war with China in the South China Sea in the next five to 10 years.
A US-Chinese military conflict would be on top of a vow by Trump in his inaugural presidential address, to not only take on radical Islamic terrorism but to “eradicate it from the face of the Earth.” This would be done by building up America’s already supreme military. “Our military dominance must be unquestioned,” the billionaire businessman, who now controlled the most powerful political office in the world, declared in his first address to the nation.
A year and a half after that speech, the United States is not at war with China, but its economic saber-rattling is arguably the beginning of a confrontation between the world’s largest and second-largest economies. Trump’s tariff threats against not only China but Europe, Canada, Mexico and its other trade partners, are also symbolic of a shift in US foreign policy towards a more isolationist stance – one that may not strictly be due to Trump’s belligerent personality. This article will get into the antecedents of this economic and military showdown and point the way to some possible future scenarios, including a war in space. Continue reading
QUESTION: Mr. Armstrong; I attended the Paris conference of the BIS when you were the keynote speaker. You delivered a forecast that was probably too far ahead for its time. You said the euro would go through and it would first drop but then peak with deflation in 2008 after the markets crash from 2007. You elaborated saying currency rises during a crash when people run to cash. You also said the euro would then decline for 13 years into 2021 before a new system will emerge.
That stuck in my mind and I watched it fall then rally into 2008 and the crash of 2007 you forecast some 10 years in advance. My question is simply this. You said, if I remember correctly, that the dollar would soar thereafter and we would see another monetary crisis as we did in 1985. Is this your Monetary Crisis Cycle you will reveal in Orlando?
I, and a few others from that conference, have bought tickets. I hope to shake your hand this time for a job well done for they would not have tried to stop you forecasting if you were like everyone else who are usually wrong. Continue reading
Many analysts are fearful of an impending downturn as early as next year. In an exclusive interview with FS Insider, legendary forecaster Martin Armstrong of ArmstrongEconomics.com explained his outlook on the global economy and markets, including a bold call that, as early as next year, “we’re looking at a central bank that can go bankrupt” — a topic that will be the focus of a July conference in Frankfurt.
Armstrong is a unique, contrarian thinker and has made a number of accurate forecasts over the years, especially since we’ve been speaking with him on our podcast. A key theme of his analysis is that economic growth is likely to remain stagnant as nations around the globe struggle with large debt burdens. However, rather than calling for a collapse in the dollar and the US stock market, as many bears have long predicted, Martin has taken the opposite view, focusing instead on the needs of institutional investors to earn yield by increasingly allocating capital into stocks and highly-rated corporate bonds, which helps to fuel the stock market higher. Continue reading
In an interview with GoldSeek on April 14, outspoken economist Peter Schiff issued a dire warning to investors.
According to Schiff, a new housing bubble, an overvalued stock market, and President Trump‘s proposed stimulus plan will send the U.S. into extreme panic at some point in the near future.
In fact, Schiff thinks these catalysts will combine to cause an “inflationary maelstrom” that will “wipe out entire generations of retirees” who have their nest eggs invested in the market.
Let’s take a look… Continue reading
The Dow has soared 13% since Election Day, and just last week (Feb. 10), all three major indexes closed at all-time highs. The “Trump Rally” has been great for stocks, but some observers are starting to wonder if soaring highs mean a stock market crash is coming.
No one can predict a stock market crash with 100% certainty. But we want our readers to be as informed as possible about what could happen in the market.
That’s why we’re looking into historic stock market crashes to identify warning signs that can be used now. Continue reading
HSBC’s technical-analysis team has thrown up the ultimate warning signal.
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on “RED ALERT” for an imminent sell-off in stocks given the price action over the past few weeks. Continue reading
Former Fed Chairman Alan Greenspan told CNBC on Friday the U.K. vote to leave the European Union ushers in a period that’s even worse than the darkest days of October 1987.
Britons voted by 51.9 percent to quit the 28-country union, shocking markets that had priced in a win for the remain camp.
“This is the worst period, I recall since I’ve been in public service,” Greenspan said on “Squawk on the Street.” Continue reading
(TRUNEWS) Futurist and Market Analyst Peter Temple says cycles show that the world is entering a 500 year ‘Little Ice Age’ and that the Dow Jones will crash 90% in value by 2020.
Temple’s statements were made during an exclusive interview with Rick Wiles of TRUNEWS on Monday, while discussing how Alexander Chizhevsky’s Solar, Edward R. Dewey’s Business, Ralph Nelson Elliott’s Market, Nikolai Kondratiev’s Economic, and Raymond H. Wheeler’s Climate cycles can be used to accurately predict future trends.
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… Continue reading
(Source)
As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling.
Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.
If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering: What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?
Sadly, we think so. While there may be a market rescue that provide some relief in the near term, looking at the next few years, we will experience this as a time of unprecedented financial market turmoil, political upheaval and social unrest. The losses will be staggering. Markets are going to crash, wealth will be transferred from the unwary to the well-connected, and life for most people will get harder as measured against the recent past. Continue reading
For the first time ever, the Baltic Dry Index has fallen under 400. As I write this article, it is sitting at 394. To be honest, I never even imagined that it could go this low. Back in early August, the Baltic Dry Index was sitting at 1,222, and since then it has been on a steady decline. Of course the Baltic Dry Index crashed hard just before the great stock market crash of 2008 too, but at this point it is already lower than it was during that entire crisis. This is just more evidence that global trade is grinding to a halt and that 2016 is going to be a “cataclysmic year” for the global economy. Continue reading
China’s stock market crash on Monday triggered its first ever halt and rattled markets worldwide.
Japan’s Nikkei Stock Average lost 3.1%, Hong Kong’s Hang Seng Index fell 2.7%, and South Korea’s Kospi declined 2.2%. Continue reading
After a year-long investigation, Bloomberg has reported details on the extent of a data breach, and the motive behind it.
Russian hackers had infiltrated Dow Jones & Co to steal information to trade on before it was made public, and the breach was “far more serious than a lower-grade intrusion” disclosed by the company, Bloomberg reported, citing sources.
The Federal Bureau of Investigation, Secret Service and the Securities and Exchange Commission are leading an investigation, which began at least a year ago, Bloomberg reported. (http://bloom.bg/1LSxcUI) Continue reading
Global Geopolitics 