Posted on 02/28/2013 2:19:18 PM PST by blam
WALTER ZIMMERMAN: Every Indicator I Follow Shows The Market Is Going To Tank, A New Financial Crisis
Sam Ro
Februaru 28,2013
The stock market is within points of hitting an all-time high.
However, there is no shortage of experts who are waving red flags. Earnings expectations have been falling, profit margins appear to be unsustainably high, and sentiment is so high that it seems investors are being complacent about the risks.
"Every reliable technical tool is warning of major peaking action," said Walter Zimmerman, the senior technical analyst at United-ICAP. "This includes sentiment, momentum, classical chart patterns, and Elliott wave analysis.
"Most of the rally in the stock market since 2009 can be chalked up to the Federal Reserve’s attempt to create a ‘wealth effect’ through higher stock market prices. This only exacerbates the downside risk. Why? The stock market no is longer a lead indicator for the economy. It is instead reflecting Fed manipulation. Pushing the stock market higher while the real economy languishes has resulted in another bubble.
"The next leg down will not be a partial correction of the advance since the 2009 lows. It will be another major financial crisis. The worst is yet to come."
Zimmerman sent us a brief presentation laying out his thesis.
Click here to see the presentation →
(Excerpt) Read more at businessinsider.com ...
I knew Harry Dent would be right...eventually.
Well said, the elites are drunk on their wealth and power while the politicians are drunk on the blood of American tax payers!
“At this point it is about destroying the wealth of all americans. Inflate the stock market, let it crash, let inflation take care of the rest.”
I’ve been telling friends this for three years, and now they jibe me for it because it hasn’t happened. Can’t change the laws of economics -— especially not with incompetent economic and fiscal policies that ensure calamity.
The iceberg has been hit IMHO.
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