1 – China slowdown
2 – Commodity collapse
3 – Resource sector credit crisis
4 – Dominoes begin to fall
5 – Credit markets roll over
6 – Interest rate shock
7 – Bull market third longest on record
8 – Overvalued US market
Related:
Posted on 08/17/2015 4:33:35 AM PDT by SkyPilot
China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations
“Men’s hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken.” Luke 21:26 (KJV)
When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.
Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse.
1 – China slowdown
China was the great saviour of the world economy in 2008. The launching of an unprecedented stimulus package sparked an infrastructure investment boom. The voracious demand for commodities to fuel its construction boom dragged along oil- and resource-rich emerging markets.
The Chinese economy has now hit a brick wall. Economic growth has dipped below 7pc for the first time in a quarter of a century, according to official data. That probably means the real economy is far weaker.
The People’s Bank of China has pursued several measures to boost the flagging economy. The rate of borrowing has been slashed during the past 12 months from 6pc to 4.85pc. Opting to devalue the currency was a last resort and signalled the great era of Chinese growth is rapidly approaching its endgame.
(Excerpt) Read more at nowtheendbegins.com ...
1 – China slowdown
2 – Commodity collapse
3 – Resource sector credit crisis
4 – Dominoes begin to fall
5 – Credit markets roll over
6 – Interest rate shock
7 – Bull market third longest on record
8 – Overvalued US market
Related:
Such pessimism considering the forever optimistic source of this article..."Now The End Begins"
Not much us poor shmucks can do anyway. For myself I own my house and have gone to 100% cash with some gold. Maybe I’ll survive. Or not.
The stock market and the economy has very little in common.
I am optimistic about the stock market, but just in case of a crash I have lots of ammo (which is better than gold).
The stock market is an extrapolation of the future economy.
Only to the extent that people are intending to hold the stocks long term. Short term speculators distort the market’s relationship to the economy. The market’s current run up has little to do with stock buyers’ expectation of a booming economy.
My 2 favorites (where I have done extremely well) and QQQ and IBB.
Short term speculators are irrelevant to me. For every speculator who believes the market is going to shoot up there is some speculator who is betting on a crash.
I do watch out for bubbles like 1987, 2008 or 2000. I was out of the market when each of them occurred. Bubbles are usually quite visible if you take a hard, analytical look.
“...the collective unconscious mind of investors...”
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I tend to look at it in the same way.
I am not so worried about daily fluctuations as much as long term stability.
I look for solid companies and funds that have a good performance history
-priority 1 is to preserve the capital over long term and
-priority 2 is to return higher than average dividends over short term
I rely on my investment returns to support my routine living expenses.
My problem with picking a good investment based on “price gain”
is that the only way to access the gain is to sell the investment.
Yup.
The extrapolists must be rattling chicken bones and chanting Voodoo spells, because we on the verge of a global meltdown.
The stock market "gains" of recent years are nothing more than milk from the pig teats of the Central Banks - and that milk has just about run dry.
I'm an analytical investor. Plus, I have worked on Wall St as an SVP of a major investment bank...so I have a little experience with the markets.
If you believe you are correct about a crash, why don't you short the market.
The right guns retain their value really well, too.
Like a new in box Colt Magnum Carry? Got two.
Ammo, yes, but damn is it heavy! You can only carry so much. It would make a great bartering chip though.
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