Month: August 2017

There’s a strange thing about Central Bankers…

When they are working at a Central Bank, they never see financial problems, even if said problems are both MASSIVE and obvious.

As Fed Chair in 1999, Alan Greenspan claimed it was impossible to know if stocks were in a bubble … when stocks were in their single largest bubble in 100 years.

The next year, the market crashed.

As Fed Chair in 2007, Ben Bernanke claimed the subprime mortgage meltdown was “contained” and the effects would not “spillover” into the economy.

The next year the market crashed as the economy imploded.

And this year, Fed Chair Janet Yellen announced that there wouldn’t be another financial crisis in our “lifetime.”

We’ll see what comes next year.

Actually, we KNOW what’s coming, because for whatever reason, as soon as a Central Banker leaves the Fed, he or she suddenly changes their tune and starts telling the truth.

On that note, former Fed Chair Alan Greenspan issued a crystal clear warning on Friday.

Former Federal Reserve Chairman Alan Greenspan issued a bold warning Friday that the bond market is on the cusp of a collapse that also will threaten stock prices.

In a CNBC interview, the longtime central bank chief said the prolonged period of low interest rates is about to end and, with it, a bull market in fixed income that has lasted more than three decades.

“The current level of interest rates is abnormally low and there’s only one direction in which they can go, and when they start they will be rather rapid,” Greenspan said on “Squawk Box.”

Source: CNBC

Greenspan’s had a decent record of honesty in the last few years, noting that excessive debt is the root of the financial system’s and that the reintroducing the Gold Standard would solve many of our current problems.

Again, the former Fed Chair seems to have “got religion” when it comes to finance.

And he’s now issuing a major warning that the bond market is in serious trouble.

He’s not wrong either. Globally the Bond Bubble has reached truly astonishing levels. The world has added $68 TRILLION in new bonds to the debt markets since 2007.

As a result of this, today the world’s Debt to GDP ratio is s staggering 327%.

All of this new was issued based on assumptions that interest rates would remain at or near ZERO. So what happens to all this debt when yields start rising, bond payments increase, and borrowers start defaulting?

You’ve been warned.

You’ve been warned.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 99 copies of this report for FREE to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Whoever is rigging the market is getting increasingly desperate.

The daily VIX slams are getting more and more ridiculous. It’s getting to the point that the VIX is getting slammed 5%-6% every single day at 9:50AM  just to pin the S&P 500 (they’re not even trying to get a gain anymore).

Here’s the VIX slam of the last four days. It’s absolutely ridiculous how obvious this thing is getting.

Here’s the S&P 500’s last nine closes. The index is LITERALLY not being allowed to move. It’s now gyrating a point or two per day.

This level of extreme fixing indicates we’re much closer to the end of this rig than the beginning. The reality is that Central Banks can manipulate some asset classes all the time, but they CANNOT manipulate every asset class at the same time.

Eventually something is going to “break.” Whether it’s Oil, the German DAX, or some other item, we’re going to see the markets call the fixer’s bluff. When this happens, whoever is fixing the S&P 500 will have to let it go.

When they do we’re looking at a single day collapse similar to what happened in May 2010.

You’ve been warned.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We are giving away just 99 copies of this report for FREE to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

As you know, we’ve been tracking the sub-prime auto-loan industry closely.

Our view is that this industry represents the worst of the worst excesses of our current credit bubble, much as the subprime mortgage industry represented the worst of the worst in excess for the Housing Bubble.

For this reason, we refer to sub-prime auto-loans as Subprime 2.0.

As you no doubt recall, it was when housing prices rolled over in 2006 that the sub-prime mortgage industry began blowing up. After all, the only reason those loans were being made was because housing prices were going up. So once housing rolled over, it was only a matter of time before the sub-prime mortgage players blew up.

Well, the same thing that happened to housing in 2006 is now happening in automobiles: prices are rolling over. So the value of the underlying assets is now falling.

Even worse, total vehicle sales have ALSO rolled over. And this is happening despite ridiculous offers such as 0% down and interest free financing.

This is a MAJOR warning that the credit cycle is once again turning. The Sub-Prime 2.0 bubble is bursting as we write this.

We all know what comes next.

For more insights that can help you see serious returns from your investments, join our FREE daily e-letter, Gains Pains & Capital.

Every weekday you’ll receive our research reports before the market’s open.

In the last 6 months we’ve called the massive sell-off in the $USD, the out-performance by Emerging Markets, and more.

And best of all, it’s 100% totally FREE.

To join us, swing by: http://gainspainscapital.com/

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

A reader recently wrote in asking why I’m so bearish.

I want to be clear; I’m not bearish because of the economy, nor because of stocks trading at bubble-level valuations (though both of those issues concern me).

I’m most bearish because of the ongoing market rig that is setting the stage for a massive 1987-type crash.

I’m talking about the VIX-manipulation/ risk-parity fund algorithms.

I realize this probably sounds like mumbo jumbo, so let me explain.

The VIX is a volatility index, specifically an index showing the price investors are willing to pay for protection against volatility.

When the VIX rises, it signals investors are getting concerned. When it falls, it signals investors are getting complacent.

At least, that’s how it’s supposed to work.

The problem with this is that an entire fund industry has been created based on how the VIX trades. These funds are called Risk Parity Funds. And they are meant to balance an investor’s exposure to stocks and bonds based on… market volatility via the VIX.

If market volatility is rising, these funds buy bonds (a safe haven). If market volatility is falling, these funds buy stocks.

Put simply, these funds buy and sell stocks based on how the VIX is trading.

The process is entirely automated: they do this based on algorithms, NOT human beings watching the VIX and then hitting “buy” or “sell.”

Worst of all, this is not a small industry. Risk Parity funds manage some $500 BILLION in assets.

So where is the market rig?

The market rig concerns the fact that “someone” is routinely pushing the VIX lower because it induces Risk Parity Funds to buy stocks.

This rig has gotten so obvious that it is now happening at the same time every day: in the 9:50AM-10:00AM window.

You can see it in the chart below, which I showed clients last week. Every single day, someone slams the VIX lower at this time. They also do this throughout the day whenever stocks are close to breaking down.

If you think I’m creating a conspiracy theory here, take a look at the market’s close of the last 10 days: the S&P 500 is moving less than a quarter of a percent every single day. “Someone” is literally PINNING the market, holding it in place.

And they are doing this by slamming the VIX lower to force Risk-Parity Funds to buy stocks ANY TIME THE MARKET BEGINS TO BREAK DOWN.

This is a market rig, plain and simple. It is astonishing that it has gotten this bad. But it is so obvious that even a child could catch it.

So why am I bearish?

Because all market rigs break eventually. This one will be no different. And when it breaks, the VIX will spike, and those same Risk Parity Funds will sell stocks indiscriminately, just as they’ve been buying them for weeks now.

This will cause a Market Crash. And it won’t be a “grinding lower for months roller coaster” type Crash like the one in 2008. It will be a “one day implosion” Crash like that of October 1987.

Indeed, this is precisely the same scenario that lead up to the ‘87 Crash: automated programs buying and selling stocks based on various metrics. It worked great when the market was rallying. But once it broke down… this happened.

That’s why I’m bearish. It isn’t because of the economy or stock valuations… it’s because the market is being rigged. And when this rig breaks it will be a disaster.

A Crash is coming…

And smart investors will use it to make literal fortunes.

We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It’s called Stock Market Crash Survival Guide.

Today is the last day this report is available to the general public.

To pick up one of the last remaining copies…

CLICK HERE!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

A reader recently wrote in asking why I’m so bearish.

I want to be clear; I’m not bearish because of the economy, nor because of stocks trading at bubble-level valuations (though both of those issues concern me).

I’m most bearish because of the ongoing market rig that is setting the stage for a massive 1987-type crash.

I’m talking about the VIX-manipulation/ risk-parity fund algorithms.

I realize this probably sounds like mumbo jumbo, so let me explain.

The VIX is a volatility index, specifically an index showing the price investors are willing to pay for protection against volatility.

When the VIX rises, it signals investors are getting concerned. When it falls, it signals investors are getting complacent.

At least, that’s how it’s supposed to work.

The problem with this is that an entire fund industry has been created based on how the VIX trades. These funds are called Risk Parity Funds. And they are meant to balance an investor’s exposure to stocks and bonds based on… market volatility via the VIX.

If market volatility is rising, these funds buy bonds (a safe haven). If market volatility is falling, these funds buy stocks.

Put simply, these funds buy and sell stocks based on how the VIX is trading.

The process is entirely automated: they do this based on algorithms, NOT human beings watching the VIX and then hitting “buy” or “sell.”

Worst of all, this is not a small industry. Risk Parity funds manage some $500 BILLION in assets.

So where is the market rig?

The market rig concerns the fact that “someone” is routinely pushing the VIX lower because it induces Risk Parity Funds to buy stocks.

This rig has gotten so obvious that it is now happening at the same time every day: in the 9:50AM-10:00AM window.

You can see it in the chart below, which I showed clients last week. Every single day, someone slams the VIX lower at this time. They also do this throughout the day whenever stocks are close to breaking down.

If you think I’m creating a conspiracy theory here, take a look at the market’s close of the last 10 days: the S&P 500 is moving less than a quarter of a percent every single day. “Someone” is literally PINNING the market, holding it in place.

And they are doing this by slamming the VIX lower to force Risk-Parity Funds to buy stocks ANY TIME THE MARKET BEGINS TO BREAK DOWN.

This is a market rig, plain and simple. It is astonishing that it has gotten this bad. But it is so obvious that even a child could catch it.

So why am I bearish?

Because all market rigs break eventually. This one will be no different. And when it breaks, the VIX will spike, and those same Risk Parity Funds will sell stocks indiscriminately, just as they’ve been buying them for weeks now.

This will cause a Market Crash. And it won’t be a “grinding lower for months roller coaster” type Crash like the one in 2008. It will be a “one day implosion” Crash like that of October 1987.

Indeed, this is precisely the same scenario that lead up to the ‘87 Crash: automated programs buying and selling stocks based on various metrics. It worked great when the market was rallying. But once it broke down… this happened.

That’s why I’m bearish. It isn’t because of the economy or stock valuations… it’s because the market is being rigged. And when this rig breaks it will be a disaster.

A Crash is coming…

And smart investors will use it to make literal fortunes.

We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It’s called Stock Market Crash Survival Guide.

Today is the last day this report is available to the general public.

To pick up one of the last remaining copies…

CLICK HERE!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

A reader recently wrote in asking why I’m so bearish.

I want to be clear; I’m not bearish because of the economy, nor because of stocks trading at bubble-level valuations (though both of those issues concern me).

I’m most bearish because of the ongoing market rig that is setting the stage for a massive 1987-type crash.

I’m talking about the VIX-manipulation/ risk-parity fund algorithms.

I realize this probably sounds like mumbo jumbo, so let me explain.

The VIX is a volatility index, specifically an index showing the price investors are willing to pay for protection against volatility.

When the VIX rises, it signals investors are getting concerned. When it falls, it signals investors are getting complacent.

At least, that’s how it’s supposed to work.

The problem with this is that an entire fund industry has been created based on how the VIX trades. These funds are called Risk Parity Funds. And they are meant to balance an investor’s exposure to stocks and bonds based on… market volatility via the VIX.

If market volatility is rising, these funds buy bonds (a safe haven). If market volatility is falling, these funds buy stocks.

Put simply, these funds buy and sell stocks based on how the VIX is trading.

The process is entirely automated: they do this based on algorithms, NOT human beings watching the VIX and then hitting “buy” or “sell.”

Worst of all, this is not a small industry. Risk Parity funds manage some $500 BILLION in assets.

So where is the market rig?

The market rig concerns the fact that “someone” is routinely pushing the VIX lower because it induces Risk Parity Funds to buy stocks.

This rig has gotten so obvious that it is now happening at the same time every day: in the 9:50AM-10:00AM window.

You can see it in the chart below, which I showed clients last week. Every single day, someone slams the VIX lower at this time. They also do this throughout the day whenever stocks are close to breaking down.

If you think I’m creating a conspiracy theory here, take a look at the market’s close of the last 10 days: the S&P 500 is moving less than a quarter of a percent every single day. “Someone” is literally PINNING the market, holding it in place.

And they are doing this by slamming the VIX lower to force Risk-Parity Funds to buy stocks ANY TIME THE MARKET BEGINS TO BREAK DOWN.

This is a market rig, plain and simple. It is astonishing that it has gotten this bad. But it is so obvious that even a child could catch it.

So why am I bearish?

Because all market rigs break eventually. This one will be no different. And when it breaks, the VIX will spike, and those same Risk Parity Funds will sell stocks indiscriminately, just as they’ve been buying them for weeks now.

This will cause a Market Crash. And it won’t be a “grinding lower for months roller coaster” type Crash like the one in 2008. It will be a “one day implosion” Crash like that of October 1987.

Indeed, this is precisely the same scenario that lead up to the ‘87 Crash: automated programs buying and selling stocks based on various metrics. It worked great when the market was rallying. But once it broke down… this happened.

That’s why I’m bearish. It isn’t because of the economy or stock valuations… it’s because the market is being rigged. And when this rig breaks it will be a disaster.

A Crash is coming…

And smart investors will use it to make literal fortunes.

We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It’s called Stock Market Crash Survival Guide.

Today is the last day this report is available to the general public.

To pick up one of the last remaining copies…

CLICK HERE!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research