Four Reasons Why a Trade Deal Isn’t Coming This Weekend…

Stock markets are rallying today on the belief that somehow the US and China will sign a trade deal at the upcoming G-20 meeting.

Investors are buying this narrative despite the facts that…

1)   The Trump administration has already admitted that a deal is highly UN-likely.

2)   The Trump administration has also admitted that the next round of tariffs (25%) will hit in January (meaning no deal by then).

3)   The US and China have yet to reach ANY kind of remote agreement on anything. Indeed, they don’t even appear to be openly negotiating at the moment.

4)   Large-scale trade deals that resolve decades-old structural issues between the two largest economies in the world do NOT get resolved by a 1-on-1 face to face meeting that lasts a few hours.

If you think I’m being overly negative, take a look at the currency markets.

The currency markets are the largest, most liquid markets in the world. Collectively they trade $5-$6 trillion PER DAY. As such, these markets are the first to note macro shifts.

With that in mind, the $USD has erased the initial drop that occurred when President Trump first started talking about a trade deal. The $USD is now re-challenging the recent highs.

Put another way, the currency markets are “buying” the notion of a trade deal one bit.

Let me ask you, who’s got a better grip on what’s happening in the world… the mainstream media or the currency markets?

Better yet, which would you rather base an investment decision on… the largest, most liquid markets in the world… or the mainstream media?

Also… if stocks really believed a trade deal was coming… wouldn’t they have at least reclaimed their 200-DMA?

The next leg down hits soon. And when it does, we’re going to new lows.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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 It's a Bull Market

The Largest Most Liquid Market in the World Isn’t Buying the Trade Deal Narrative

Stock markets are rallying today on the belief that somehow the US and China will sign a trade deal at the upcoming G-20 meeting.

Investors are buying this narrative despite the facts that…

1)   The Trump administration has already admitted that a deal is highly UN-likely.

2)   The Trump administration has also admitted that the next round of tariffs (25%) will hit in January (meaning no deal by then).

3)   The US and China have yet to reach ANY kind of remote agreement on anything. Indeed, they don’t even appear to be openly negotiating at the moment.

4)   Large-scale trade deals that resolve decades-old structural issues between the two largest economies in the world do NOT get resolved by a 1-on-1 face to face meeting that lasts a few hours.

If you think I’m being overly negative, take a look at the currency markets.

The currency markets are the largest, most liquid markets in the world. Collectively they trade $5-$6 trillion PER DAY. As such, these markets are the first to note macro shifts.

With that in mind, the $USD has erased the initial drop that occurred when President Trump first started talking about a trade deal. The $USD is now re-challenging the recent highs.

Put another way, the currency markets are “buying” the notion of a trade deal one bit.

Let me ask you, who’s got a better grip on what’s happening in the world… the mainstream media or the currency markets?

Better yet, which would you rather base an investment decision on… the largest, most liquid markets in the world… or the mainstream media?

Also… if stocks really believed a trade deal was coming… wouldn’t they have at least reclaimed their 200-DMA?

The next leg down hits soon. And when it does, we’re going to new lows.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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 It's a Bull Market

If a Trade Deal Was Coming… Wouldn’t Stocks Reclaim Their 200-DMA?

Stock markets are rallying today on the belief that somehow the US and China will sign a trade deal at the upcoming G-20 meeting.

Investors are buying this narrative despite the facts that…

1)   The Trump administration has already admitted that a deal is highly UN-likely.

2)   The Trump administration has also admitted that the next round of tariffs (25%) will hit in January (meaning no deal by then).

3)   The US and China have yet to reach ANY kind of remote agreement on anything. Indeed, they don’t even appear to be openly negotiating at the moment.

4)   Large-scale trade deals that resolve decades-old structural issues between the two largest economies in the world do NOT get resolved by a 1-on-1 face to face meeting that lasts a few hours.

If you think I’m being overly negative, take a look at the currency markets.

The currency markets are the largest, most liquid markets in the world. Collectively they trade $5-$6 trillion PER DAY. As such, these markets are the first to note macro shifts.

With that in mind, the $USD has erased the initial drop that occurred when President Trump first started talking about a trade deal. The $USD is now re-challenging the recent highs.

Put another way, the currency markets are “buying” the notion of a trade deal one bit.

Let me ask you, who’s got a better grip on what’s happening in the world… the mainstream media or the currency markets?

Better yet, which would you rather base an investment decision on… the largest, most liquid markets in the world… or the mainstream media?

Also… if stocks really believed a trade deal was coming… wouldn’t they have at least reclaimed their 200-DMA?

The next leg down hits soon. And when it does, we’re going to new lows.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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 It's a Bull Market

The $USD Just Called “BS” on the Latest Trade Deal Narrative

Stock markets are rallying today on the belief that somehow the US and China will sign a trade deal at the upcoming G-20 meeting.

Investors are buying this narrative despite the facts that…

1)   The Trump administration has already admitted that a deal is highly UN-likely.

2)   The Trump administration has also admitted that the next round of tariffs (25%) will hit in January (meaning no deal by then).

3)   The US and China have yet to reach ANY kind of remote agreement on anything. Indeed, they don’t even appear to be openly negotiating at the moment.

4)   Large-scale trade deals that resolve decades-old structural issues between the two largest economies in the world do NOT get resolved by a 1-on-1 face to face meeting that lasts a few hours.

If you think I’m being overly negative, take a look at the currency markets.

The currency markets are the largest, most liquid markets in the world. Collectively they trade $5-$6 trillion PER DAY. As such, these markets are the first to note macro shifts.

With that in mind, the $USD has erased the initial drop that occurred when President Trump first started talking about a trade deal. The $USD is now re-challenging the recent highs.

Put another way, the currency markets are “buying” the notion of a trade deal one bit.

Let me ask you, who’s got a better grip on what’s happening in the world… the mainstream media or the currency markets?

Better yet, which would you rather base an investment decision on… the largest, most liquid markets in the world… or the mainstream media?

Also… if stocks really believed a trade deal was coming… wouldn’t they have at least reclaimed their 200-DMA?

The next leg down hits soon. And when it does, we’re going to new lows.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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 It's a Bull Market
The Fed Won’t Walk Back Rate Hikes Until This Line

The Fed Won’t Walk Back Rate Hikes Until This Line

Investors are once again pinning their forecasts on hope.

The hope is that the Powell Fed will slow the pace of its rate hikes based on the recent market carnage in stocks and bonds.

And once again the Fed is going to destroy these hopes.

As I explained to clients in August, the Powell Fed is revolutionary to the point that very few understand. Whereas former Fed chairs Bernanke or Yellen would have halted ALL rate hikes the second stocks corrected, current Fed Chair Jerome Powell has made it clear that the only reason he would even consider slowing the pace of rate hikes is if stocks enter a prolonged collapse that was so massive it damaged consumer spending.

We are not talking about a two to three week correction… we are talking about a something so massive that ordinary Americans take note and alter their spending behavior.

Think a three to six month bear market in which stocks lose 30% or more.

In chart terms, Powell didn’t even bat an eye at the October drop. Heck he didn’t even THINK about holding off on hiking rates in December.

No… Powell won’t be walking back the Fed’s hawkishness until consumer spending takes a hit as Americans worry about the stock market collapsing. We’re talking about a drop down to this line.

The old adage says, “don’t fight the Fed.” The Fed has made it clear what its goals are. If you’re betting on the market entering another bull market now, you’re in for a nasty surprise.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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 It's a Bull Market

Hope is Not a Strategy. And Yet, Most Investors Are Banking on It

Investors are once again pinning their forecasts on hope.

The hope is that the Powell Fed will slow the pace of its rate hikes based on the recent market carnage in stocks and bonds.

And once again the Fed is going to destroy these hopes.

As I explained to clients in August, the Powell Fed is revolutionary to the point that very few understand. Whereas former Fed chairs Bernanke or Yellen would have halted ALL rate hikes the second stocks corrected, current Fed Chair Jerome Powell has made it clear that the only reason he would even consider slowing the pace of rate hikes is if stocks enter a prolonged collapse that was so massive it damaged consumer spending.

We are not talking about a two to three week correction… we are talking about a something so massive that ordinary Americans take note and alter their spending behavior.

Think a three to six month bear market in which stocks lose 30% or more.

In chart terms, Powell didn’t even bat an eye at the October drop. Heck he didn’t even THINK about holding off on hiking rates in December.

No… Powell won’t be walking back the Fed’s hawkishness until consumer spending takes a hit as Americans worry about the stock market collapsing. We’re talking about a drop down to this line.

The old adage says, “don’t fight the Fed.” The Fed has made it clear what its goals are. If you’re betting on the market entering another bull market now, you’re in for a nasty surprise.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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?

Don’t Bet on Jerome Powell “Saving the Day” for Stocks

Investors are once again pinning their forecasts on hope.

The hope is that the Powell Fed will slow the pace of its rate hikes based on the recent market carnage in stocks and bonds.

And once again the Fed is going to destroy these hopes.

As I explained to clients in August, the Powell Fed is revolutionary to the point that very few understand. Whereas former Fed chairs Bernanke or Yellen would have halted ALL rate hikes the second stocks corrected, current Fed Chair Jerome Powell has made it clear that the only reason he would even consider slowing the pace of rate hikes is if stocks enter a prolonged collapse that was so massive it damaged consumer spending.

We are not talking about a two to three week correction… we are talking about a something so massive that ordinary Americans take note and alter their spending behavior.

Think a three to six month bear market in which stocks lose 30% or more.

In chart terms, Powell didn’t even bat an eye at the October drop. Heck he didn’t even THINK about holding off on hiking rates in December.

No… Powell won’t be walking back the Fed’s hawkishness until consumer spending takes a hit as Americans worry about the stock market collapsing. We’re talking about a drop down to this line.

The old adage says, “don’t fight the Fed.” The Fed has made it clear what its goals are. If you’re betting on the market entering another bull market now, you’re in for a nasty surprise.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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?

Jerome Powell is NOT Bernanke or Yellen. He Doesn’t Care if Stocks Crash

Investors are once again pinning their forecasts on hope.

The hope is that the Powell Fed will slow the pace of its rate hikes based on the recent market carnage in stocks and bonds.

And once again the Fed is going to destroy these hopes.

As I explained to clients in August, the Powell Fed is revolutionary to the point that very few understand. Whereas former Fed chairs Bernanke or Yellen would have halted ALL rate hikes the second stocks corrected, current Fed Chair Jerome Powell has made it clear that the only reason he would even consider slowing the pace of rate hikes is if stocks enter a prolonged collapse that was so massive it damaged consumer spending.

We are not talking about a two to three week correction… we are talking about a something so massive that ordinary Americans take note and alter their spending behavior.

Think a three to six month bear market in which stocks lose 30% or more.

In chart terms, Powell didn’t even bat an eye at the October drop. Heck he didn’t even THINK about holding off on hiking rates in December.

No… Powell won’t be walking back the Fed’s hawkishness until consumer spending takes a hit as Americans worry about the stock market collapsing. We’re talking about a drop down to this line.

The old adage says, “don’t fight the Fed.” The Fed has made it clear what its goals are. If you’re betting on the market entering another bull market now, you’re in for a nasty surprise.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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?

Warning: the Fed Put is Much MUCH Lower Than the Consensus

Investors are once again pinning their forecasts on hope.

The hope is that the Powell Fed will slow the pace of its rate hikes based on the recent market carnage in stocks and bonds.

And once again the Fed is going to destroy these hopes.

As I explained to clients in August, the Powell Fed is revolutionary to the point that very few understand. Whereas former Fed chairs Bernanke or Yellen would have halted ALL rate hikes the second stocks corrected, current Fed Chair Jerome Powell has made it clear that the only reason he would even consider slowing the pace of rate hikes is if stocks enter a prolonged collapse that was so massive it damaged consumer spending.

We are not talking about a two to three week correction… we are talking about a something so massive that ordinary Americans take note and alter their spending behavior.

Think a three to six month bear market in which stocks lose 30% or more.

In chart terms, Powell didn’t even bat an eye at the October drop. Heck he didn’t even THINK about holding off on hiking rates in December.

No… Powell won’t be walking back the Fed’s hawkishness until consumer spending takes a hit as Americans worry about the stock market collapsing. We’re talking about a drop down to this line.

The old adage says, “don’t fight the Fed.” The Fed has made it clear what its goals are. If you’re betting on the market entering another bull market now, you’re in for a nasty surprise.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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?

Sorry Bulls, the Fed Isn’t Going to Save You This Time

Investors are once again pinning their forecasts on hope.

The hope is that the Powell Fed will slow the pace of its rate hikes based on the recent market carnage in stocks and bonds.

And once again the Fed is going to destroy these hopes.

As I explained to clients in August, the Powell Fed is revolutionary to the point that very few understand. Whereas former Fed chairs Bernanke or Yellen would have halted ALL rate hikes the second stocks corrected, current Fed Chair Jerome Powell has made it clear that the only reason he would even consider slowing the pace of rate hikes is if stocks enter a prolonged collapse that was so massive it damaged consumer spending.

We are not talking about a two to three week correction… we are talking about a something so massive that ordinary Americans take note and alter their spending behavior.

Think a three to six month bear market in which stocks lose 30% or more.

In chart terms, Powell didn’t even bat an eye at the October drop. Heck he didn’t even THINK about holding off on hiking rates in December.

No… Powell won’t be walking back the Fed’s hawkishness until consumer spending takes a hit as Americans worry about the stock market collapsing. We’re talking about a drop down to this line.

The old adage says, “don’t fight the Fed.” The Fed has made it clear what its goals are. If you’re betting on the market entering another bull market now, you’re in for a nasty surprise.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available to the public. We extended the deadline based on yesterday’s sucker rally, but this it IT… no more extensions.

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?
Prepare For a Wave of Corporate Debt Defaults

Prepare For a Wave of Corporate Debt Defaults

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting.

By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a bubble in EVERYTHING. After all, if the risk-free rate of return is at FAKE level based on Central Bank intervention… ALL risk assets will eventually adjust to FAKE levels.

This whole mess starting blowing up in February when we saw the bubble in passive investing/ shorting volatility start to blow up (some investment vehicles based on these strategies lost 85% in just three days).

The media and Wall Street swept that mess under the rug… which allowed the contagion to start spreading to other, more senior asset classes… like corporate bonds.

The US Corporate bond market took 50 years to reach $3 trillion. It doubled that in the last 9 years, bringing it to its current level of $6 trillion.

This debt issuance was a DIRECT of result of the Fed’s intervention in the bond markets. With the weakest recovery on record, US corporations experienced little organic growth. As a result, many of them resorted to financial engineering through which they issued debt and then used the proceeds to buyback shares.

This:

1)   Juiced their Earnings Per Share (the same earnings, spread over fewer shares= better EPS).

2)   Provided the stock market with a steady stream of buyers, which…

3)   Lead to higher options-based compensation for executives.

If you think this sounds a lot like a Ponzi scheme that relies on a bubble in corporate debt, you’re correct. And that Ponzi scheme is now blowing up. The question now is
how bad will it get?”

VERY bad.

The IMF estimates about 20% of U.S. corporate assets could be at risk of default if rates rise – some are in the energy sector but it also includes companies in real estate and utilities. Exchange-traded funds that buy junk bonds, like iShares iBoxx $ High Yield Corporate Bond Fund (HYG) and the SPDR Barclays Capital High Yield Bond ETF (JNK), could be among the most vulnerable if credit risks rise. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) could also suffer.

Source: Barron’s

With a $6 trillion market, a 20% default rate would mean some $1.2 trillion in corporate debt blowing up: an amount roughly equal to Spain’s GDP.

This process is officially underway.

Credit Markets Are Bracing for Something Bad

Cracks in corporate debt lead market commentary.

…the Bloomberg Barclays U.S. Corporate Bond Index losing more than 3.5 percent and on track for its worst year since 2008.

Source: Bloomberg

Indeed, the chart for US corporate junk bonds is downright UGLY.

This is just the beginning. As contagion spreads we expect more and more junior debt instruments to default culminating in full-scale sovereign debt defaults in the developed world (Europe comes to mind).

This will coincide with a stock market crash that will make 2008 look like a picnic.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available 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 Debt Bomb

Kindle is Running a Cyber Monday Special on My Book

Dear Reader,

If you’re looking for answers as to why the US financial system is the way it is… or have questions about what’s coming down the pike in the financial markets, pick up a copy of our bestselling book The Everything Bubble: The End Game For Central Bank Policy on KINDLE today.

If you’ve yet to pick up a copy, grab one now. You’ll immediately know more about how the financial system works (as well as what’s come) than anyone else in your social circle.

If you’ve already bought a copy, PLEASE leave us a review on Amazon. It will help get the word out!

This book is a distillation of over a decade of work. It is divided into two sections (How We Got Here and What’s to Come).

How We Got Here outlines everything you need to know about how the US financial system was created, developed, and currently operates “behind the scenes.” Anyone who reads it will have a better understanding of these issues than 99% of the public.

What’s to Come outlines what the next round of Federal Reserve policy will look like when The Everything Bubble (the bubble in sovereign bonds) bursts. It presents a road map for how the next crisis will play out as well as how the Fed will react to what’s coming.

Again, you can purchase the book by CLICKING HERE.

Thank you for your business. I hope you enjoy reading this book. I simply couldn’t be prouder of it.

Best Regards,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
US Corporates Are Sitting On Bad Debt Equal to the GDP of Spain

US Corporates Are Sitting On Bad Debt Equal to the GDP of Spain

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting.

By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a bubble in EVERYTHING. After all, if the risk-free rate of return is at FAKE level based on Central Bank intervention… ALL risk assets will eventually adjust to FAKE levels.

This whole mess starting blowing up in February when we saw the bubble in passive investing/ shorting volatility start to blow up (some investment vehicles based on these strategies lost 85% in just three days).

The media and Wall Street swept that mess under the rug… which allowed the contagion to start spreading to other, more senior asset classes… like corporate bonds.

The US Corporate bond market took 50 years to reach $3 trillion. It doubled that in the last 9 years, bringing it to its current level of $6 trillion.

This debt issuance was a DIRECT of result of the Fed’s intervention in the bond markets. With the weakest recovery on record, US corporations experienced little organic growth. As a result, many of them resorted to financial engineering through which they issued debt and then used the proceeds to buyback shares.

This:

1)   Juiced their Earnings Per Share (the same earnings, spread over fewer shares= better EPS).

2)   Provided the stock market with a steady stream of buyers, which…

3)   Lead to higher options-based compensation for executives.

If you think this sounds a lot like a Ponzi scheme that relies on a bubble in corporate debt, you’re correct. And that Ponzi scheme is now blowing up. The question now is
how bad will it get?”

VERY bad.

The IMF estimates about 20% of U.S. corporate assets could be at risk of default if rates rise – some are in the energy sector but it also includes companies in real estate and utilities. Exchange-traded funds that buy junk bonds, like iShares iBoxx $ High Yield Corporate Bond Fund (HYG) and the SPDR Barclays Capital High Yield Bond ETF (JNK), could be among the most vulnerable if credit risks rise. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) could also suffer.

Source: Barron’s

With a $6 trillion market, a 20% default rate would mean some $1.2 trillion in corporate debt blowing up: an amount roughly equal to Spain’s GDP.

This process is officially underway.

Credit Markets Are Bracing for Something Bad

Cracks in corporate debt lead market commentary.

…the Bloomberg Barclays U.S. Corporate Bond Index losing more than 3.5 percent and on track for its worst year since 2008.

Source: Bloomberg

Indeed, the chart for US corporate junk bonds is downright UGLY.

This is just the beginning. As contagion spreads we expect more and more junior debt instruments to default culminating in full-scale sovereign debt defaults in the developed world (Europe comes to mind).

This will coincide with a stock market crash that will make 2008 look like a picnic.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available 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 Debt Bomb

Pick Up a Copy of My Bestselling Book Today

Dear Reader,

If you’re looking for answers as to why the US financial system is the way it is… or have questions about what’s coming down the pike in the financial markets, pick up a copy of our bestselling book The Everything Bubble: The End Game For Central Bank Policy on KINDLE today.

If you’ve yet to pick up a copy, grab one now. You’ll immediately know more about how the financial system works (as well as what’s come) than anyone else in your social circle.

If you’ve already bought a copy, PLEASE leave us a review on Amazon. It will help get the word out!

This book is a distillation of over a decade of work. It is divided into two sections (How We Got Here and What’s to Come).

How We Got Here outlines everything you need to know about how the US financial system was created, developed, and currently operates “behind the scenes.” Anyone who reads it will have a better understanding of these issues than 99% of the public.

What’s to Come outlines what the next round of Federal Reserve policy will look like when The Everything Bubble (the bubble in sovereign bonds) bursts. It presents a road map for how the next crisis will play out as well as how the Fed will react to what’s coming.

Again, you can purchase the book by CLICKING HERE.

Thank you for your business. I hope you enjoy reading this book. I simply couldn’t be prouder of it.

Best Regards,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market

The Endgame For Central Bank Policy is Here

Dear Reader,

If you’re looking for answers as to why the US financial system is the way it is… or have questions about what’s coming down the pike in the financial markets, pick up a copy of our bestselling book The Everything Bubble: The End Game For Central Bank Policy on KINDLE today.

If you’ve yet to pick up a copy, grab one now. You’ll immediately know more about how the financial system works (as well as what’s come) than anyone else in your social circle.

If you’ve already bought a copy, PLEASE leave us a review on Amazon. It will help get the word out!

This book is a distillation of over a decade of work. It is divided into two sections (How We Got Here and What’s to Come).

How We Got Here outlines everything you need to know about how the US financial system was created, developed, and currently operates “behind the scenes.” Anyone who reads it will have a better understanding of these issues than 99% of the public.

What’s to Come outlines what the next round of Federal Reserve policy will look like when The Everything Bubble (the bubble in sovereign bonds) bursts. It presents a road map for how the next crisis will play out as well as how the Fed will react to what’s coming.

Again, you can purchase the book by CLICKING HERE.

Thank you for your business. I hope you enjoy reading this book. I simply couldn’t be prouder of it.

Best Regards,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
Warning: the Crisis is Anything But Contained

Warning: the Crisis is Anything But Contained

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting.

By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a bubble in EVERYTHING. After all, if the risk-free rate of return is at FAKE level based on Central Bank intervention… ALL risk assets will eventually adjust to FAKE levels.

This whole mess starting blowing up in February when we saw the bubble in passive investing/ shorting volatility start to blow up (some investment vehicles based on these strategies lost 85% in just three days).

The media and Wall Street swept that mess under the rug… which allowed the contagion to start spreading to other, more senior asset classes… like corporate bonds.

The US Corporate bond market took 50 years to reach $3 trillion. It doubled that in the last 9 years, bringing it to its current level of $6 trillion.

This debt issuance was a DIRECT of result of the Fed’s intervention in the bond markets. With the weakest recovery on record, US corporations experienced little organic growth. As a result, many of them resorted to financial engineering through which they issued debt and then used the proceeds to buyback shares.

This:

1)   Juiced their Earnings Per Share (the same earnings, spread over fewer shares= better EPS).

2)   Provided the stock market with a steady stream of buyers, which…

3)   Lead to higher options-based compensation for executives.

If you think this sounds a lot like a Ponzi scheme that relies on a bubble in corporate debt, you’re correct. And that Ponzi scheme is now blowing up. The question now is
how bad will it get?”

VERY bad.

The IMF estimates about 20% of U.S. corporate assets could be at risk of default if rates rise – some are in the energy sector but it also includes companies in real estate and utilities. Exchange-traded funds that buy junk bonds, like iShares iBoxx $ High Yield Corporate Bond Fund (HYG) and the SPDR Barclays Capital High Yield Bond ETF (JNK), could be among the most vulnerable if credit risks rise. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) could also suffer.

Source: Barron’s

With a $6 trillion market, a 20% default rate would mean some $1.2 trillion in corporate debt blowing up: an amount roughly equal to Spain’s GDP.

This process is officially underway.

Credit Markets Are Bracing for Something Bad

Cracks in corporate debt lead market commentary.

…the Bloomberg Barclays U.S. Corporate Bond Index losing more than 3.5 percent and on track for its worst year since 2008.

Source: Bloomberg

Indeed, the chart for US corporate junk bonds is downright UGLY.

This is just the beginning. As contagion spreads we expect more and more junior debt instruments to default culminating in full-scale sovereign debt defaults in the developed world (Europe comes to mind).

This will coincide with a stock market crash that will make 2008 look like a picnic.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available 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 Debt Bomb

Want to Know What’s Coming to the Markets? This Book Explains It All

Dear Reader,

If you’re looking for answers as to why the US financial system is the way it is… or have questions about what’s coming down the pike in the financial markets, pick up a copy of our bestselling book The Everything Bubble: The End Game For Central Bank Policy on KINDLE today.

If you’ve yet to pick up a copy, grab one now. You’ll immediately know more about how the financial system works (as well as what’s come) than anyone else in your social circle.

If you’ve already bought a copy, PLEASE leave us a review on Amazon. It will help get the word out!

This book is a distillation of over a decade of work. It is divided into two sections (How We Got Here and What’s to Come).

How We Got Here outlines everything you need to know about how the US financial system was created, developed, and currently operates “behind the scenes.” Anyone who reads it will have a better understanding of these issues than 99% of the public.

What’s to Come outlines what the next round of Federal Reserve policy will look like when The Everything Bubble (the bubble in sovereign bonds) bursts. It presents a road map for how the next crisis will play out as well as how the Fed will react to what’s coming.

Again, you can purchase the book by CLICKING HERE.

Thank you for your business. I hope you enjoy reading this book. I simply couldn’t be prouder of it.

Best Regards,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in The Everything Bubble

Debt Contagion is Now Spreading to More Systemic Debt Instruments

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting.

By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a bubble in EVERYTHING. After all, if the risk-free rate of return is at FAKE level based on Central Bank intervention… ALL risk assets will eventually adjust to FAKE levels.

This whole mess starting blowing up in February when we saw the bubble in passive investing/ shorting volatility start to blow up (some investment vehicles based on these strategies lost 85% in just three days).

The media and Wall Street swept that mess under the rug… which allowed the contagion to start spreading to other, more senior asset classes… like corporate bonds.

The US Corporate bond market took 50 years to reach $3 trillion. It doubled that in the last 9 years, bringing it to its current level of $6 trillion.

This debt issuance was a DIRECT of result of the Fed’s intervention in the bond markets. With the weakest recovery on record, US corporations experienced little organic growth. As a result, many of them resorted to financial engineering through which they issued debt and then used the proceeds to buyback shares.

This:

1)   Juiced their Earnings Per Share (the same earnings, spread over fewer shares= better EPS).

2)   Provided the stock market with a steady stream of buyers, which…

3)   Lead to higher options-based compensation for executives.

If you think this sounds a lot like a Ponzi scheme that relies on a bubble in corporate debt, you’re correct. And that Ponzi scheme is now blowing up. The question now is
how bad will it get?”

VERY bad.

The IMF estimates about 20% of U.S. corporate assets could be at risk of default if rates rise – some are in the energy sector but it also includes companies in real estate and utilities. Exchange-traded funds that buy junk bonds, like iShares iBoxx $ High Yield Corporate Bond Fund (HYG) and the SPDR Barclays Capital High Yield Bond ETF (JNK), could be among the most vulnerable if credit risks rise. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) could also suffer.

Source: Barron’s

With a $6 trillion market, a 20% default rate would mean some $1.2 trillion in corporate debt blowing up: an amount roughly equal to Spain’s GDP.

This process is officially underway.

Credit Markets Are Bracing for Something Bad

Cracks in corporate debt lead market commentary.

…the Bloomberg Barclays U.S. Corporate Bond Index losing more than 3.5 percent and on track for its worst year since 2008.

Source: Bloomberg

Indeed, the chart for US corporate junk bonds is downright UGLY.

This is just the beginning. As contagion spreads we expect more and more junior debt instruments to default culminating in full-scale sovereign debt defaults in the developed world (Europe comes to mind).

This will coincide with a stock market crash that will make 2008 look like a picnic.

If you are not already preparing for this, NOW is the time to do so.

On that note 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.

Today is the last day this report will be available 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 Debt Bomb

A Crash is Coming. PREPARE NOW

We are now getting numerous BIG PICTURE signals that the markets will experience a systemic event in the next 60 days.

First and foremost, the VIX has broken a massive falling wedge formation on its monthly chart. The period of low volatility is over. We are entering a period of GREAT volatility.

Secondly, we have a confirmed BREAK of the bull market trendline from the 2009 low on the S&P 500. We also have NEGATIVE divergence on the RSI and a SELL signal triggered on the MACD.

So the bull market is OVER and we are entering a period of SYSTEMIC volatility.

Finally, market leaders like Apple (AAPL) and Amazon (AMZN) are in full-blown CRASH formations with nothing but air pockets below.

Again, the markets are going to CRASH. The time to prepare is now BEFORE this happens.

On that note 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.

Today is the last day this report will be available 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 It's a Bull Market
The Bull Market is OVER     $VIX     $AAPL    $AMZN   $SPY

The Bull Market is OVER $VIX $AAPL $AMZN $SPY

We are now getting numerous BIG PICTURE signals that the markets will experience a systemic event in the next 60 days.

First and foremost, the VIX has broken a massive falling wedge formation on its monthly chart. The period of low volatility is over. We are entering a period of GREAT volatility.

Secondly, we have a confirmed BREAK of the bull market trendline from the 2009 low on the S&P 500. We also have NEGATIVE divergence on the RSI and a SELL signal triggered on the MACD.

So the bull market is OVER and we are entering a period of SYSTEMIC volatility.

Finally, market leaders like Apple (AAPL) and Amazon (AMZN) are in full-blown CRASH formations with nothing but air pockets below.

Again, the markets are going to CRASH. The time to prepare is now BEFORE this happens.

On that note 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.

Today is the last day this report will be available 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 It's a Bull Market