stock collapse?

THREE Reasons Stocks Will Crater in 2016

Happy New Year!

Last year (2015) likely will represent the top for the bull market that began in 2009. Stocks finished the year down, representing the first down year since the March 2009 bottom.

Many analysts will point to the August sell-off as the reason stocks performed so badly, however, looking at the chart, stocks struggled throughout the year, long before the August sell-off. Indeed, at best the S&P 500 was up 3% for the year!

GPC1416

Things are only going to worsen from here.

Firstly, the US Federal Reserve is now tightening. From 2009-2015, the Fed was always implementing loose monetary policies whether it by through QE, Operation Twist, or simply juicing the markets during options expiration weeks.

No longer. The Fed is now raising rates. This will be a major issue for stocks going forward.

Secondly, the US economy is back in recession.

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Over the same time period, the S&P 500 is 0%.

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I don’t care what the Mainstream media says, based on the cold hard data points stripped of accounting gimmicks, the US entered a recession last year. This is backed up by:

  • The High Yield Bond market is pricing in a recession.
  • The Credit Markets are pricing in a recession.
  • US inventories hit levels associated with recessions.
  • The ISM manufacturing index is at recession levels.

With the Fed tightening, the recessionary drop is only going to accelerate.

Finally, corporate profits relative to GDP are at their record high and rolling over.

GPC14162

Corporate growth can be generated via three ways:

  • Economic growth
  • Financial Engineering (stock buybacks and other profit boosting gimmicks)
  • Increased productivity

With the US back in recession and the Fed tightening, both #s 1 and 2 are over. This leaves #3. And while productivity did increase marginally in first half of 2015, it’s now rolling over again towards 0%.

In short, the sources of growth for US corporates have all dried up. Stocks have yet to adjust to this, but when they do it’s going to be an all out collapse.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

To whit, over the last 12 months we’ve closed 40 straight winning trades.

That correct, during ALL of 2015, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist
Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?

Will 2016 Bring Another 2008-Type Crash? Pt. 1

The world is lurching towards another Crash.

Japan, which has been ground zero for Keynesian insanity, is back in technical recession. This comes after the Bank of Japan launched the single largest QE program in history: a QE program equal to 25% of GDP launched in April 2013.

This program bought an uptick in economic growth for just six months before Japan’s GDP growth rolled over again. Similarly, an expansion of QE in October 2014 pulled Japan back from the brink, but GDP growth collapsed again soon after, plunging the country into technical recession earlier this year.

japan-gdp-growth

Japan is completely insolvent. The country has no choice but to continue to implement QE or else it will go crash in a matter of months. However, with the Bank of Japan already monetizing ALL of the country’s debt issuance, the question arises, “just what else can it buy?”

We’ll find out in 2016. But Japan is now officially in the End Game from Central Banking.

Europe is not far behind.

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Over the same time period, the S&P 500 is 0%.

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The ECB has cut interest rates to negative, cut them further into negative, launched a QE program, and then cut interest rates even further into negative while extending its QE program.

EU GDP growth has flat-lined at barely positive.

european-union-gdp-growth

But the economy is having serious difficulty fending off deflation.

When your ENTIRE banking system is leveraged by 26 to 1, as is Europe’s, even a 4% drop in asset values renders the system insolvent. Without significant inflation, the EU’s banking system will crash.

european-union-inflation-rate-1

ECB President Draghi better have more in his bazooka that what he’s fired so far, or the EU’s $46 trillion banking system will crash. However, as is the case with the Bank of Japan, the ECB is facing a shortage of viable assets to buy.

Between these two banking systems alone, you’ve got the makings of a global financial crisis at least on par with 2008. Both countries are sinking into deflation at a time when their respective Central Banks have little if any ammo left.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.

That correct, during the last year, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist
Phoenix Capital Research

 

 

Posted by Phoenix Capital Research in stock collapse?

The Fed’s Academic-Based Theories Are Creating a BRUTAL Economic Reality

One of the most frustrating aspects of today’s financial system is the fact that the Fed is being lead by lifelong academics with no real world banking or business experience.

Consider the cases of Ben Bernanke and Janet Yellen.

Neither of these individuals has ever created a job based on generating sales of any kind. Neither of them has ever had to make payroll. Neither of them has ever run a business. What are economic realities for business owners (e.g. operating costs, capital and profits) are just abstract concepts for Bernanke and Yellen.

Moreover, there is a particular problem with academic economists. That problem is that a major percentage of their “research” is total bunk made up in order to make tenure.

This is not our opinion… it is fact based on research published by the Fed itself.

According to a paper published by researchers from THE FEDERAL RESERVE BOARD, it was not possible to replicate even HALF of the results found in economics papers EVEN WITH THE ASSISTANCE OF THE INDIVIDUALS WHO WROTE THE PAPER.

Let’s repeat that: even with the help of those who claimed to have found the results, the results were not replicable.

There is a word for a result that is not replicable. It’s imaginary.

This might go a long ways towards explaining how individuals like Ben Bernanke and Janet Yellen can continue to say with a straight face that they have a grip on the economy, when the results show that they are either completely lost or being dishonest.
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Even if you include ALL of our losers, we are up 35% year to date.

Over the same time period, the S&P 500 is 0%.

That’s correct, with minimal risk, we are outperforming the S&P 500 by 35%… and the year isn’t even over yet! Heck, we just closed out another 30% winner yesterday!

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———————————————————————–

Consider the Fed’s unemployment target for raising rates.

Back in 2012, the Fed claimed it would start to raise rates when unemployment fell to 6.5%. We hit that target in April 2014. The Fed didn’t raise rates for another 20 months.

One wonders, just what was the legitimacy of the Fed’s “target” for raising rates. How on earth can you make a target, then move the target for nearly two more years and claim the target was even remotely accurate?

More importantly, if the Fed’s economic models suggested raising rates when unemployment was 6.5% and the Fed didn’t raise rates until unemployment was at 5% (a full 20 months later)… just how accurate are these models?

We might be nitpicking here, but if the models in question are being used to steer the US economy, there is an awful lot at stake here.

Let’s take a look at what happens when the Fed’s theories connect with the real world.

The Fed claims it cut rates to ZERO to boost the economy. The theory here is that if capital becomes cheaper, corporates and consumers will spend more, creating more jobs.

Unfortunately this is not how the real world works. For consumers, excessive debt is deflationary in nature in that at some point you are so in debt that making your debt load more serviceable accomplishes next to nothing in terms of solvency/ spending power.

Moreover, ZIRP is deflationary in nature for savers and those who rely on interest income because it makes them concerned about future returns on their capital. As a result of this, they tend to hoard their cash, not spend it.

The only individuals who benefit from ZIRP are the very wealthy and corporates, because both can use their assets to leverage up. And this is precisely what has happened.

We are currently on track for our FOURTH straight RECORD year for corporate bond issuance.

Why is this bad?

Because A) it means corporations are going massively in debt and B) they are doing this NOT to expand operations (economic growth doesn’t warrant this) but to issue buybacks and dividends.

With rates at zero, executives are leveraging up to generate shareholder returns. This works great in the short-term, but there is hell to pay down the road. And unfortunately we’re there.

Today US corporates are more leveraged than at any other point in history, including the Tech Bubble.

leverage

H/T Societe General

This is what happens when the Fed’s academic-based nonsense collides with economic realities: perversions of capital that lead to massive bubbles and eventually even more massive crises.

The Fed fueled the Tech Bubble, which lead to the Tech Crash.

It then fueled the Housing Bubble, which lead to the Housing Crash and 2008.

And now it’s created an ever bigger bubble that that.

Which means.,.

We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work. They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.

That correct, during the last year, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist
Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?

Deflation is Back… Will It Lead to Another Crash?

Central Bankers are flummoxed.

Having cut interest rates over 600 times since 2009 (and printed over $15 trillion), they’ve yet to generate the expected economic growth.

Despite these failures, the ECB, and the Bank of Japan are currently engaging massive QE programs. The Fed is the only major Central Bank not rapidly expanding its balance sheet.

Why, after six years, are we still seeing such aggressive policies?

Because deflation, the bad kind, is once again lurking around the corner.

Anyone with a functioning brain knows that deflation is a good thing. No one complains when they are able to buy something at a lower price, whether it is a home, gasoline, or computer.

However, debt deflation is a different story. Debt deflation means that future debt payments are becoming more expensive. This means that debt servicing will become more difficult, eventually leading to default and debt restructuring.

It is debt deflation that remains the primary focus for the global Central Banks. Indeed, if you consider the threat of debt deflation, every Central Bank move makes sense. ZIRP, NIRP, and QE all have the same goal in mind: to lower interest rates and push bonds higher (thereby making sovereign debt loads more serviceable).

With this in mind, even a whiff of debt deflation is enough to give Central Bankers nightmares. It’s also why they are so fond of inflation via currency devaluation, as it permits them to render massive debt loads more serviceable.

Unfortunately, the great “reflation experiment” is failing. Indeed, as Societe General has noted, it appears the developed world may be “turning Japanese” i.e. moving into a long-term deflationary cycle similar to that which has plagued Japan for the last 20 years.

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Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we are up 35% year to date.

Over the same time period, the S&P 500 is FLAT (0%).

That’s correct, with minimal risk, we are outperforming the S&P 500 by 35%… and the year isn’t even over yet! Heck, we just closed out another 30% winner earlier this week!

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———————————————————————–

To whit, inflation expectations are collapsing globally.

In Europe, despite three cuts into NIRP, the announcement of QE and an extension of QE, inflation is barely positive at 0.2%.

euro-area-inflation-cpi-1

Then of course there is the US.

There, one of the better measures of inflation expectations is the 5 Year, 5-Year Forward Inflation Expectation Rate. That is simply a long way of saying that this chart measures where investors expect inflation to be in five years… and running for five years after that date.

GPC1221152
As you can see, inflation expectations have collapsed in the latter half of 2015. Post-2008, any time this measure has fallen below the Fed’s desired threshold of 2%, it has launched a new monetary policy. In 2010 it was QE 2. In 2011 it was Operation Twist.

We’re now well below that level. And this is AFTER six years of ZIRP and $4 trillion in QE!

Deflation is back… and as it rears its head again in the west, Western Central Banks will soon be forced to answer the question.

Can we actually stop deflation?

Unfortunately for them, the answer is likely no.

Consider Japan.

Japan has engaged in NINE QE programs since 1990. Since that time, the country’s GDP growth has been anemic at best. Indeed, even its latest MASSIVE QE program (a single monetary program equal to 25% of Japan’s GDP) only boosted Japan’s GDP for two quarters before growth rolled over again. Indeed, Japan is once again back in technical recession as of our writing this.

japan-gdp-growth

The reality is slowly beginning to sink in that Central Banks cannot put off the business cycle. They’ve spent over $15 trillion and cut interest rates over 600 times and all they’ve generated is one of the weakest recoveries on record.

What happens the next time global GDP takes a nosedive when Central Banks have already used up all of their ammunition?

Two works: Markets Crash.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.

That correct, during the last year, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist
Phoenix Capital Research

Posted by Phoenix Capital Research in Debt Bomb, stock collapse?

Take Note: Globally Bull Markets Are Ending

Central Banks are beginning to lose control.

Indeed, despite recent promises to do more by the Bank of Japan, the Nikkei is rapidly losing momentum.
GPC 1218151
In Europe, the situation is worse. There the ECB has already cut interest rates to negative THREE times, launched QE and already extended said QE.

Still, EU stocks are rolling over and testing their bull market trendline.

GPC1218152

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The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we are up 35% year to date.

Over the same time period, the S&P 500 is FLAT (0%).

That’s correct, with minimal risk, we are outperforming the S&P 500 by 35%… and the year isn’t even over yet! Heck, we just closed out another 30% winner earlier this week!

Our next goes out shortly… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER…

CLICK HERE NOW!!!

———————————————————————–

Finally, there’s the US where the Central Bank is no longer easing but is in fact raising rates. There the markets have ALREADY taken out their bull market trendline.

GPC1218153
Are you ready for a bear market?

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.

That correct, during the last year, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist
Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?

The Fed Rate Hike Will Trigger a $9 Trillion Meltdown

Yesterday, the Fed has hiked interest rates from 0.25% to 0.5%.

It is the first rate hike in 10 years. And it is now clear that the Fed is not only behind the ball in terms of raising rates… but that it has now primed the financial system for another 2008-type meltdown.

By way of background we need to consider the relationship between the US Dollar and the Euro.

The Euro comprises 56% of the basket of currencies against which the US Dollar is valued. As such, the Euro and the Dollar have a unique relationship in which whatever happens to the one will have an outsized impact on the other.

Here’s why the Fed’s decision to raise rates will implode the financial system.

In June 2014 the ECB cut interest rates to negative. Before this, the interest rate differential between the Euro and the US Dollar was just 0.25% (the US Dollar was yielding 0.25% while the deposit rate on the Euro was at exactly zero).

While significant, the interest rate differential was not enough to kick off a complete flight of capital from the Euro to the US Dollar. However, when the ECB launched NIRP, cutting its deposit rate to negative 0.1%, the rate differential (now 0.35%) and punitive qualities of NIRP (it actually cost money to park capital in the Euro) resulted in vast quantities of capital fleeing Euros and moving into the US Dollar.

Soon after, the US Dollar erupted higher, breaking out of a multiyear triangle pattern and soaring over 25% in a matter of nine months.

GPC1217151To put this into perspective, this move was larger in scope than the “flight to safety” that occurred in 2008 when everyone thought the world was ending.

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The reason this is problematic?

There are over $9 trillion in borrowed US Dollars sloshing around the financial system. And much of it is parked in assets that are denominated in emerging market currencies (the very currencies that have imploded as the US Dollar rallied).

This is the US Dollar carry trade… and it is larger in scope that the economies of Germany and Japan… combined.

In short, when the ECB cut rates to negative, the US Dollar carry trade began to blow up. The situation only worsened when the ECB cut rates even further into negative territory in September 2014 and again last week bringing the rate differential between the US Dollar and Euro to 0.55%.

Now, the Fed has raised interest rates to 0.5%. This has made the interest rate differential between the Euro and the US Dollar 0.75%. This will trigger a complete implosion of the $9 trillion US Dollar carry trade.

This is a long-term, multi-decade chart of the US Dollar.

GPC121715As you can see it has just broken out of the largest falling wedge pattern in monetary history. The chart predicts that during the next leg up, the US Dollar will rally to 120 or even 130.

At that point, the $9 trillion US Dollar carry trade will implode triggering a 2008-type event. Our timeline for this is within the next 12 months.

Smart investors are preparing now.

Private Wealth Advisory subscribers are already profiting from the markets, having just closed THREE more winners yesterday, bringing us to a FORTY THREE trade winning streak…

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Private Wealth Advisory is a WEEKLY investment newsletter that can help you  profit from the markets. Every week you get pages of high quality editorial presenting market conditions and outlining the best trades to make to profit from them.

It is the only newsletter to have closed 72 consecutive winning trades in a 12 month period (ZERO losers during that time). And we just began another winning streak last year, already racking up 43 straight winners.

And we’ve only closed ONE loser in the last FOURTEEN MONTHS.

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in Debt Bomb, stock collapse?

Stocks Could HALVE Based on the True State of the Economy

Since 2009, the global markets have been largely steered by Central Bank policy, NOT organic economic growth. With the debt-based monetary system dangerously close to shutting down during the 2008 meltdown, Central Banks stepped in as the “buyers of last resort” to provide a backstop to the system.

The problem is that the individuals running the Central Banks are prone to human hubris, specifically overconfidence in the validity of their opinions and abilities. Since most Central Bankers are Keynesian economists at heart, they believe that granting Central Banks MORE power is always a good thing.

Thus, rather than stepping back once the Crisis had passed (2011-2012), Central Banks continued to prop up the markets and push for greatest Centralization of the global economy.

As a result of this, the initial distortions in the capital markets induced by QE and Zero Interest Rate Policy (ZIRP) became systemic in nature. Investors no longer bought assets based on perceived value relative to the real economy. Rather, they bought based on perceived Central Bank actions and promises.

The most egregious example of this pertains to the sovereign bond market where investors began to front-run Central Bankers QE programs.

Indeed, the promise of “more QE” was one of the most powerful tools in Central Banks’ belts. Mind you, it was the promise of QE, not the QE itself that had the biggest impact on bonds.

Consider what happened in 2010.

QE 1 ended in June 2010. Soon after, the Fed began to hint at launching a new program, QE 2. Bonds rallied hard throughout this period as investors bought bonds to front-run the upcoming program. Once QE 2 was actually launched, bonds FELL.

UST1———————————————————————–

The Opportunity to Make Triple If Not QUADRUPLE Digit Gain is Here

The largest investor fortunes in history were made during crises.

For that reason, we’ve launched a special options trading service designed specifically to profit from the coming crisis.

It’s called THE CRISIS TRADER and already it’s locking in triple digit winners including gains of 151%, 182%, 261% and even 436%!

And the REAL crisis hasn’t even started yet!

We have an success rate of 72%(meaning you make money on more than 7 out of 10 trades)…and thanks to careful risk control, we’re outperforming the S&P 500 by over 50%!

Our next trade is going out shortly… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

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———————————————————————–

This was a classic case of “buy the rumor, sell the fact.”

In plain terms, the bond market’s risk profile was skewed not only by Central Bank policy… it was skewed by the promise and hope of additional policy. Indeed, the largest bond moves occurred BEFORE QE 2 and Operation Twist were announced.

Below is a chart showing the performance of the 10-Year Treasury. Periods in which the Fed was actively engaged in QE or Operation Twist are white. Periods in which the Fed was hinting at or promising additional policies are in green. Note that the largest bond rallies (meaning yields fell) occurred during periods in which the Fed was PROMISING to do more, as opposed to actually DOING anything.

UST

And since the Fed began hinting at additional policy soon after any actual policy ended, the bond markets became permanently skewed as investors were continuously reacting to hype and hope more than economic realities.

The implications of this are tremendous. Modern financial theory dictates that sovereign bonds, particularly, US Treasuries, are the only true “risk free” rate of return in the current financial system. ALL other asset classes trade based on where sovereign bonds, particularly US Treasuries trade.

So if the US Treasury market’s risk profile becomes skewed by Central Bank policy (and verbal interventions in the form of promises of additional monetary policy), the entire financial system’s risk profile becomes skewed.

Stocks (both developed and emerging), commodities, corporate bonds, muni bonds… EVERYTHING was skewed based on the fact that the sovereign bond market was pricing risk based on Central Bank policy rather than economic reality.

We’ve already gotten a taste of what happens when asset classes finally “adjust” to underlying “demand” with the commodity markets: having operated based on Central Bank money printing for five years, they then wiped out ALL of those gains in six months as they adjusted to the economic realities of a weak global economy.

CRB

Developed stock markets have yet to make a similar adjustment, but they will… and when they do, it will be a DOOZY.

sc

Smart investors are preparing now.

Private Wealth Advisory subscribers are already profiting from the markets, having just closed THREE more winners yesterday, bringing us to a FORTY THREE trade winning streak…

What is Private Wealth Advisory?

Private Wealth Advisory is a WEEKLY investment newsletter that can help you  profit from the markets. Every week you get pages of high quality editorial presenting market conditions and outlining the best trades to make to profit from them.

It is the only newsletter to have closed 72 consecutive winning trades in a 12 month period (ZERO losers during that time). And we just began another winning streak last year, already racking up 43 straight winners.

And we’ve only closed ONE loser in the last FOURTEEN MONTHS.

You can try Private Wealth Advisory for 30 days (1 month) for just $0.98 cents.

However, this offer will be expiring tomorrow at midnight. I cannot maintain a track record of over a YEAR of straight winners with thousands and thousands of investors following these recommendations.

To take out a $0.98 30-day trial subscription to Private Wealth Advisory… and lock in one of the few remaining slots….

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?

The Fuse on the Global Debt Bomb Has Just Been Lit

The global bond bubble has begun bursting.

This process will not be fast by any means.

Central Banks and the political elite will fight tooth and nail to maintain the status quo, even if this means breaking the law (freezing bank accounts or funds to stop withdrawals) or closing down the markets (the Dow was closed for four and a half months during World War 1).

There will be Crashes and sharp drops in asset prices (20%-30%) here and there. However, history has shown us that when a financial system goes down, the overall process takes take several years, if not longer.

By way of example let us consider the details surrounding the Tech Bubble: the single largest stock market bubble of the last 100 years. In this case, the Bubble pertained to just one asset class (stocks). In fact, the bubble was relatively isolated to one specific sector, Tech Stocks.

And to top if off, it was absolutely obvious to anyone that it was a Bubble: note that the Cyclical Adjusted Price to Earnings or CAPE ratio for the Tech Bubble dwarfed all other bubbles dating back to 1890.

CAPEStocks were so obviously overvalued that it was truly absurd.

And yet, despite the fact that this bubble was absolutely obvious and involved only one asset class, it still took investors well over six months after the initial 20% crash to realize that the top was in and the bubble had burst.

sc-3

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Let that sink in for a moment. Stocks were clearly in a bubble. Indeed, it was literally THE stock bubble of the last 100 years. And yet, when it burst, there was no clear consensus as to where the market was heading.

My point with all of this is that even when the bubble was both very specific AND obvious, the collapse was neither quick nor clean. There were several large 20%+ crashes, but overall, it was a roller coaster with jarring rallies than gradually wore its way down.

And when you extend the collapse from peak to bottom, the whole collapse took nearly three years.

To return to my initial point: the coming collapse in the financial markets will take its time. This is particularly true this time around because the bubble pertains to bonds: the senior-most asset class in the financial system.

By way of explanation, let’s consider how the current monetary system works…

The current global monetary system is based on debt. Governments issue sovereign bonds, which a select group of large banks and financial institutions (e.g. Primary Dealers in the US) buy/sell/ and control via auctions.

These financial institutions list the bonds on their balance sheets as “assets,” indeed, the senior-most assets that the banks own.

The banks then issue their own debt-based money via inter-bank loans, mortgages, credit cards, auto loans, and the like into the system. Thus, “money” enters the economy through loans or debt. In this sense, money is not actually capital but legal debt contracts.

Because of this, the system is inherently leveraged (uses borrowed money).

Consider the following:

  • Total currency (actual cash in the form of bills and coins) in the US financial system is little over $1.2 trillion.
  • If you want to include money sitting in short-term accounts and long-term accounts the amount of “Money” in the system is about $10 trillion.
  • In contrast, the US bond market is well over $38 trillion.
  • If you include derivatives based on these bonds, the financial system is north of $191 trillion.

Bear in mind, this is just for the US.

Again, debt is money. And at the top of the debt pyramid are sovereign bonds: US Treasuries, German Bunds, Japanese Government Bonds, etc. These are the senior most assets used as collateral for interbank loans and derivative trades. THEY ARE THE CRÈME DE LA CRÈME of our current financial system.

So, this time around, when the bubble bursts, it won’t simply affect a particular sector or asset class or country… it will affect the entire system.

So…. the process will take considerable time. Remember from the earlier pages, it took three years for the Tech Bubble to finally clear itself through the system. This time it will likely take as long if not longer because:

  • The bubble is not confined to one country (globally, the bond bubble is over $100 trillion in size).
  • The bubble is not confined to one asset class (all “risk” assets are priced based on the perceived “risk free” valuation of sovereign bonds… so every asset class will have to adjust when bonds finally implode).
  • The Central Banks will do everything they can to stop this from happening (think of what the ECB has been doing in Europe for the last three years)
  • When the bubble bursts, there will very serious political consequences for both the political elites and voters as the system is rearranged.

The size of the bond bubble alone should be enough to give pause.

However, when you consider that these bonds are pledged as collateral for other securities (usually over-the-counter derivatives) the full impact of the bond bubble explodes higher to $555 TRILLION.

To put this into perspective, the Credit Default Swap (CDS) market that nearly took down the financial system in 2008 was only a tenth of this ($50-$60 trillion).

On that note, we should point that the fuse is already lit on the global debt bomb. Emerging Market bonds taking out their bull market trendline.

GPC1215151Junk bonds are also in the process of ending their multi-year bull market.

GPC1215152The bursting of the bond bubble has begun. This process will take months to unfold and it will culminate in a stock market crash.

Private Wealth Advisory subscribers are already profiting from the markets, having just closed THREE more winners yesterday, bringing us to a FORTY THREE trade winning streak…

What is Private Wealth Advisory?

Private Wealth Advisory is a WEEKLY investment newsletter that can help you  profit from the markets. Every week you get pages of high quality editorial presenting market conditions and outlining the best trades to make to profit from them.

It is the only newsletter to have closed 72 consecutive winning trades in a 12 month period (ZERO losers during that time). And we just began another winning streak last year, already racking up 43 straight winners.

And we’ve only closed ONE loser in the last FOURTEEN MONTHS.

You can try Private Wealth Advisory for 30 days (1 month) for just $0.98 cents.

However, this offer will be expiring tomorrow at midnight. I cannot maintain a track record of over a YEAR of straight winners with thousands and thousands of investors following these recommendations.

To take out a $0.98 30-day trial subscription to Private Wealth Advisory… and lock in one of the few remaining slots….

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in Debt Bomb, stock collapse?

Stocks Will Fall Anywhere From 17%-50% Depending on the Fed’s Response

A major long-term momentum indicator is flashing, “sell.”

Based on the historical significance of this indicator we may be putting in a top and possibly THE top for the bull market that began 2009.

The indicator concerns the monthly moving average convergence divergence or MACD.

For those of you who like technical analysis, this indicator is formed by two interweaving lines.

The first line (usually black on the chart) is formed by subtracting the 26-month exponential moving average (EMA) from the 12-month EMA.

So if the 26-month EMA is 12 and 12-month EMA is 10, the black line would be at 2 for that particular day.

The second line (usually red on the chart) is formed by the 9-month exponential moving average.

The “signals” come when the two lines connect:

  1. Anytime the black line breaks above the red line, it triggers a “buy” signal.
  1. Anytime the black line breaks below the red line, it triggers a “sell” signal.

“Sell” signals usually coincide with market tops forming. They also trigger when bull markets END.

———————————————————————–

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———————————————————————–

I’ve labeled the “sell” signals on the monthly chart of the S&P 500 below. We are using the monthly chart because we’re most concerned with timing when a multi-year bull market ends, NOT intermediate swings in price.

MACDAs you can see, this signal has been fairly accurate for picking tops.

Of course it’s more of an art than a science when it comes to timing the end of a bull market (two of the “sell” signals hit on short-term tops in 1998 and 2011, as opposed to the ultimate market tops which came later).

However, it is worth noting that even during those periods in which “sell” signals only coincided with temporary tops (1998 and 2011), BOTH times stocks staged a dramatic collapse before beginning their next leg up.

In 1998, when the “sell” signal triggered, stocks dropped nearly 20%.

In 2011, when the “sell” signal triggered, stocks fell 17% and the Fed announced Operation Twist to try and prop the markets up.

Moreover, the other times that this indicator registered a “sell signal” (the times when it coincided with THE top for stocks) the markets fell 50% and 57% respectively.

So the fact a “sell” signal is hitting now is of massive importance. It tells us that momentum is falling and we can expect a sizable correction in stocks at the very least and a Crash at the very worst.

Smart investors are preparing now.

Private Wealth Advisory subscribers are already profiting from the markets, having just closed THREE more winners yesterday, bringing us to a FORTY THREE trade winning streak…

What is Private Wealth Advisory?

Private Wealth Advisory is a WEEKLY investment newsletter that can help you  profit from the markets. Every week you get pages of high quality editorial presenting market conditions and outlining the best trades to make to profit from them.

It is the only newsletter to have closed 72 consecutive winning trades in a 12 month period (ZERO losers during that time). And we just began another winning streak last year, already racking up 43 straight winners.

And we’ve only closed ONE loser in the last FOURTEEN MONTHS.

You can try Private Wealth Advisory for 30 days (1 month) for just $0.98 cents.

However, this offer will be expiring tomorrow at midnight. I cannot maintain a track record of over a YEAR of straight winners with thousands and thousands of investors following these recommendations.

To take out a $0.98 30-day trial subscription to Private Wealth Advisory… and lock in one of the few remaining slots….

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Posted by Phoenix Capital Research in stock collapse?

The Coming Economic Collapse Will Crash Stocks

In 2008, the world experienced the worst economic collapse in 80+ years. This collapse triggered a stock market crash that erased $30 trillion in wealth.

Since that time, collectively Central Banks have cut interest rates over 600 times and have printed over $15 trillion in new money… money that has failed to generate sustained economic growth… money that has set the stage for another stock market crash.

Consider the measures of GDP growth in the US for instance.

The mainstream media likes to present the “official” GDP numbers as though they are gospel… but the reality is that the number you hear in the press is not even close to accurate.

One of the simplest means of hiding the real economic collapse is to use a bogus measure for inflation. If GDP growth is 10%, and inflation is 10%, then real GDP growth is 0%.

But what if GDP growth is 10%, real inflation is 10%, but you claim inflation is just 6%?

Boom! You can promote GDP growth of 4% to support your claim that printing trillions of dollars has boosted the economy.

To remove this accounting gimmick, you can use Nominal GDP and look at the rate of growth from a year ago. Doing this presents a VERY different view of the economy: one of economic collapse, not growth. I’ve circled periods in which the current level of “growth” occurred in the past.

———————————————————————–

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And the REAL crisis hasn’t even started yet!

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———————————————————————–

2.png

As you can see, the “recovery” of the last six years has largely involved a “growth” rate that was closely associated with recessions over the last 30 years. At best the US economy has been flatlining. At worst we’ve had bouts of economic collapse comparable to a recession.

Also, note that the previous periods in which we’ve experienced this rate of economic collapse have been associated with stock market crashes.

1.png

The media can try to hide reality all it wants. But an economic collapse is here. It will trigger another stock market crash just as it did in the early ’90s, the Tech Bubble, and the Housing Bubble. And this time Central Banks won’t be able to stop it: they’ve used up all of their ammo in the last six years trying to create  recovery.

Smart investors are preparing now.

Private Wealth Advisory subscribers are already profiting from the markets, having just closed THREE more winners yesterday, bringing us to a FORTY THREE trade winning streak…

What is Private Wealth Advisory?

Private Wealth Advisory is a WEEKLY investment newsletter that can help you  profit from the markets. Every week you get pages of high quality editorial presenting market conditions and outlining the best trades to make to profit from them.

It is the only newsletter to have closed 72 consecutive winning trades in a 12 month period (ZERO losers during that time). And we just began another winning streak last year, already racking up 43 straight winners.

And we’ve only closed ONE loser in the last FOURTEEN MONTHS.

You can try Private Wealth Advisory for 30 days (1 month) for just $0.98 cents.

However, this offer will be expiring tomorrow at midnight. I cannot maintain a track record of over a YEAR of straight winners with thousands and thousands of investors following these recommendations.

To take out a $0.98 30-day trial subscription to Private Wealth Advisory… and lock in one of the few remaining slots….

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?

Buckle Up, It’s Very Likely the Bull Market in Stocks is Over

As I warned last week… it’s very likely that the
Bull Market in stocks is over.

Stocks have broken their bull market trendline.
Not only that, but they’ve been rejected by this line
TWICE, indicating that the momentum is GONE.

The next move will be SHARPLY DOWN.

Indeed, the breakdown is actually MUCH bigger than most investors
realize. We’ve actually broken THE bull market line that goes all
the way back to 2009!

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Posted by Phoenix Capital Research in stock collapse?

The Fed is About to Trigger a $9 Trillion Debt Implosion

The US Federal Reserve (Fed) and European Central Bank (ECB) have created a very dangerous situation.

Throughout the last six years, there has been a sense of coordination between the Fed and ECB. This was evident both in terms of where capital went as well as how it was delivered via monetary policy.

For instance, when the Fed released its discount window documents in 2011, it became clear that most of the funds from QE 2 actually went to foreign banks located in the EU.

Similarly, when the EU banking system was close to imploding in 2012, the Fed coordinated with the ECB to announce QE 3 in an effort to prop up the EU banking system and calm overseas jitters to aid the Obama administration in its re-election campaign.

In short, from 2008 to 20414, the Fed and ECB worked together.

However, at some point this relationship was set to fracture. True, global Central Banks want to work together to maintain stability… but when every Central Bank is engaged in the competitive devaluation of its currency, at some point the relationship between Central Banks would become fractured as they individually had to choose to aid themselves over each other.

That point is today…

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The Euro comprises 56% of the basket of currencies against which the US Dollar is valued. As such, the Euro and the Dollar have a unique relationship in which whatever happens to the one will have an outsized impact on the other.

This relationship first began to run off the rails in June 2014 when the ECB cut interest rates to negative. Before this, the interest rate differential between the Euro and the US Dollar was just 0.25% (the US Dollar was yielding 0.25% while the deposit rate on the Euro was at exactly zero).

While significant, the interest rate differential was not enough to kick off a complete flight of capital from the Euro to the US Dollar. However, when the ECB launched NIRP, cutting its deposit rate to negative 0.1%, the rate differential (now 0.35%) and punitive qualities of NIRP (it actually cost money to park capital in the Euro) resulted in vast quantities of capital fleeing Euros and moving into the US Dollar.

Soon after, the US Dollar erupted higher, breaking out of a multiyear triangle pattern and soaring over 25% in a matter of nine months.

GPC 12715To put this into perspective, this move was larger in scope than the “flight to safety” that occurred in 2008 when everyone thought the world was ending.

The reason this is problematic?

There are over $9 trillion in borrowed US Dollars sloshing around the financial system. And much of it is parked in assets that are denominated in emerging market currencies (the very currencies that have imploded as the US Dollar rallied).

This is the US Dollar carry trade… and it is larger in scope that the economies of Germany and Japan… combined.

In short, when the ECB cut rates to negative, the US Dollar carry trade began to blow up. The situation only worsened when the ECB cut rates even further into negative territory in September 2014 and again last week bringing the rate differential between the US Dollar and Euro to 0.55%.

Now, the Fed is talking of raising interest rates. Even a symbolic rate hike to 0.3% or 0.5% could trigger a complete implosion of the $9 trillion US Dollar carry trade.

If you think this is just fear mongering, you’re mistaken. The Treasury Dept. issued emergency kits to employees a few months ago in anticipation of systemic volatility during the rate hike. Similarly, the Fed boosted the size of its market operations department in Chicago case the NY Fed loses control of the system when rates increase.

In short, we could very well be on the eve of another systemic crisis. The financial elites have been preparing for this for months.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory. is a WEEKLY investment newsletter with an incredible track record.

To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.

That correct, during the last year, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help you make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory. during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory.

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

 

Posted by Phoenix Capital Research in stock collapse?

Is the Bull Market Over? These Charts Say So

For weeks we have been warning not to trust the bounce in stocks. We were worried that a Bear Market had begun.

The most critical item we were concerned with was the fact that the S&P 500, despite its massive bounce, had failed to regain its former trendline. This would suggest a Bear Market was possibly about to begin

As we first noted back in early September, Bear Markets do not happen all at once. EVERY time a major top has formed and stocks have taken out their Bull Market trendline, we’ve had a bounce to “kiss” the line before the Bear Market really took hold.

sc 8.41.39 PMThis is precisely what has happened with the October bounce: stocks rose to “kiss” the former trendline, but failed to reclaim it.
123151Having failed to reclaim this line twice, the S&P 500 is now turning sharply down. The financial media sees this as a reaction to ECB President Mario Draghi’s failure to do “enough” this morning, but the reality is that this was not to be trust, driven primarily by manipulation with little carry through from REAL buy orders.

In the near term stocks could crater to 1900 in short order. However, what happens in the next few days or even weeks is not the real concern.

The REAL concern pertains to the BIG PICTURE for the markets: the massive monthly rising wedge pattern stocks have been forming since the 2009 bottom.

As you can see in the chart below, the August-September collapse broke this formation. That, in of itself, is not the be all end all. But the fact that stocks have failed to reclaim their former bull market trendline is a MAJOR concern indicating that it is highly likely that the bull market begun March 2009 is OVER. A Bear Market will have begun.

sc-1 12.31.10 PMIf this is the case, the next Crash has already begun. This would put us at the equivalent of where the markets were in late 2007: just before the whole mess came crashing down in 2008.

Smart investors are preparing now. The August-September correction was just a warm up. The REAL drop is coming shortly.

We just published a 21-page investment report titled Stock Market Crash Survival Guide.

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

 

Posted by Phoenix Capital Research in stock collapse?
Six Horrifying Facts of the Financial System Today

Six Horrifying Facts of the Financial System Today

For six years, the world has operated under a complete delusion that Central Banks somehow fixed the 2008 Crisis.

All of the arguments claiming this defied common sense. A 5th grader would tell you that you cannot solve a debt problem by issuing more debt. If the below chart was a problem BEFORE 2008… there is no way that things are better now. After all, we’ve just added another $10 trillion in debt to the US system.

Similarly, anyone with a functioning brain could tell you that a bunch of academics with no real-world experience, none of whom have ever started a business or created a single job can’t “save” the economy.

However, there is an AWFUL lot of money at stake in believing these lies. So the media and the banks and the politicians were happy to promote them. Indeed, one could very easily argue that nearly all of the wealth and power held by those at the top of the economy stem from this fiction.

So it’s little surprise that no one would admit the facts: that the Fed and other Central Banks not only don’t have a clue how to fix the problem, but that they actually have almost no incentive to do so.

———————————————————————–

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They’re wrong.

Our options service THE CRISIS TRADER has a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we are up 43% year to date.

Over the same time period, the S&P 500 is up less than 2%.

That’s correct, with minimal risk, we are outperforming the S&P 500 by 41%… and the year isn’t even over yet.

Our next trade goes out tomorrow morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER…

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———————————————————————–

So here are the facts:

1)   The REAL problem for the financial system is the bond bubble. In 2008 when the crisis hit it was $80 trillion. It has since grown to over $100 trillion.

2)   The derivatives market that uses this bond bubble as collateral is over $555 trillion in size.

3)   Many of the large multinational corporations, sovereign governments, and even municipalities have used derivatives to fake earnings and hide debt. NO ONE knows to what degree this has been the case, but given that 20% of corporate CFOs have admitted to faking earnings in the past, it’s likely a significant amount.

4)   Corporations today are more leveraged than they were in 2007. As Stanley Druckenmiller noted recently, in 2007 corporate bonds were $3.5 trillion… today they are $7 trillion: an amount equal to nearly 50% of US GDP.

5)   The Central Banks are now all leveraged at levels greater than or equal to where Lehman Brothers was when it imploded. The Fed is leveraged at 78 to 1. The ECB is leveraged at over 26 to 1. Lehman Brothers was leveraged at 30 to 1.

6)   The Central Banks have no idea how to exit their strategies. Fed minutes released from 2009 show Janet Yellen was worried about how to exit when the Fed’s balance sheet was $1.3 trillion (back in 2009). Today it’s over $4.5 trillion.

We are heading for a crisis that will be exponentially worse than 2008. The global Central Banks have literally bet the financial system that their theories will work.  They haven’t. All they’ve done is set the stage for an even worse crisis in which entire countries will go bankrupt.

The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail.

Smart investors are preparing now.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory. is a WEEKLY investment newsletter with an incredible track record.

To whit, we just closed out two new double digit winners yesterday, bringing us to 40 straight winning trades over the last 12 months.

That correct, during the last year, we’ve not closed a SINGLE LOSER.

And if you go back further, 46 of our last 47 trades have made money.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS.

During that time, you’ll receive over 50 pages of content… along with investment ideas that will help you make you money… ideas you won’t hear about anywhere else.

If you have not seen significant returns from Private Wealth Advisory. during those 30 day, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory.

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?

Recessions in US, China and Japan (is a stock market crash coming?)

Yesterday, the recession we predicted as much as six months ago was formally noted in the ISM data, with November’s ISM coming in at sub-50.

I’d been noting to clients since at least May that numerous data points had flashed “recession” for the US economy. Among the list of warnings signs were severe declines in corporate profits, Regional Manufacturing Surveys and Merchant Wholesaler Sales.

However, until yesterday, ISM had remained above 50. And so the financial media clung to that data point as indicating that the US economy continued to expand.

Not anymore.

ISM-12215An ISM below 50 indicates a recession. However, we probably won’t hear a formal announcement that the US is in recession until mid-2016 (remember that we were well into the 2008 Crisis before the Feds revealed that the US had entered a recession back in late 2007).

And the Federal Reserve is about to hike interest rates.

This is only going to accelerate the economic downturn. Indeed, we fully believe that the global economy is already contracting, with China, Japan, and now the US in technical recession.

In China, the official growth numbers suggest GDP is growing by 7.3%, however… China’s electricity consumption suggests GDP growth is 3% at best.

China’s rail freight volume for the first eight months of 2015 fell 10.1% from the comparable period in 2014.

China’s monthly Caixin PMI reading has fallen to levels not seen since March 2009: when everyone thought the world was ending.

Let’s now turn to Japan, where the largest QE program in history was launched in April 2013, only to be increased in October 2014. This was a Keynesian dream come true: an amount of spending equal to 25% of GDP.

Since that time, Japan experienced an uptick in economic growth for two quarters before turning back down again. Which brings us to today.

Japan’s GDP shrank at an annualized pace of 1.2% in 2Q15. The country is now back in technical recession. Household spending fell 2.4% in October Year over Year (YoY). Analysts had forecast growth of 0.1%.

So, the world’s three largest economies, the US, China and Japan are all approaching if not already in recession. These countries represent nearly a third (29%) of global GDP.

Take note, the global economy is contracting again. And this is going to result in another stock market crash.

Smart investors are preparing now. The August-September correction was just a warm up. The REAL drop is coming shortly.

We just published a 21-page investment report titled Stock Market Crash Survival Guide.

In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.

We are giving away just 1,000 copies 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

 

 

 

 

 

 

 

Posted by Phoenix Capital Research in stock collapse?

Is the Next Leg Down About to Begin For Stocks?

The bounce in stocks has reached ludicrous proportions.

The S&P 500 has completely disconnected from most risk assets, driven by the usual manipulation during options expiration week, performance gaming by hedge funds before end of the month results are posted, and short covering.

Stocks are now disconnected from leveraged loans:

sc-2High yields bonds:

sc-3Copper, the commodity with a PhD in economics:

scOil:

sc-1Etc.

In simple terms, virtually no other asset class on the planet is confirming the move higher in the S&P 500. This has all the hallmarks of a dead cat bounce. What’s coming won’t be pretty.

Smart investors are preparing now. The August-September correction was just a warm up. The REAL drop is coming shortly.

We just published a 21-page investment report titled Stock Market Crash Survival Guide.

In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.

We are giving away just 1,000 copies 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

 

 

 

Posted by Phoenix Capital Research in stock collapse?