As I warned yesterday, the political outcome of the midterms if FAR less important than what is happening in the real economy.

What is happening in the real economy is that inflation has hit the point at which corporations are raising prices to the degree than Americans are demanding higher wages to compensate.

Wages and salaries jump by 3.1%, highest level in a decade

• Wages and salaries rose 3.1 percent in the third quarter, the biggest increase in a decade, according to the Labor Department.
• Overall compensation costs were up 2.8 percent, ahead of Wall Street expectations.
• Wages have been the missing piece in the economic recovery, though the Fed has been raising rates to guard against future inflationary pressures.

Source: CNBC

This represents the final stage of inflation seeping into an economy. This is why the Fed is so desperate to raise rates even if it blows up the stock market. And it’s why the bond market is in SERIOUS trouble.

And the bond market knows it.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs.

This is a MASSIVE deal. This is effectively the bond markets telling the world that inflation is MUCH higher than most believe. And we’re now reaching the point at which junior debt instruments (risky corporate debt, auto loans, subprime mortgages) are beginning to blow up again.

If you want a template for where we are right now, it’s “late 2007″… which means 2019 will be when the next crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

As I warned yesterday, the political outcome of the midterms if FAR less important than what is happening in the real economy.

What is happening in the real economy is that inflation has hit the point at which corporations are raising prices to the degree than Americans are demanding higher wages to compensate.

Wages and salaries jump by 3.1%, highest level in a decade

• Wages and salaries rose 3.1 percent in the third quarter, the biggest increase in a decade, according to the Labor Department.
• Overall compensation costs were up 2.8 percent, ahead of Wall Street expectations.
• Wages have been the missing piece in the economic recovery, though the Fed has been raising rates to guard against future inflationary pressures.

Source: CNBC

This represents the final stage of inflation seeping into an economy. This is why the Fed is so desperate to raise rates even if it blows up the stock market. And it’s why the bond market is in SERIOUS trouble.

And the bond market knows it.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs.

This is a MASSIVE deal. This is effectively the bond markets telling the world that inflation is MUCH higher than most believe. And we’re now reaching the point at which junior debt instruments (risky corporate debt, auto loans, subprime mortgages) are beginning to blow up again.

If you want a template for where we are right now, it’s “late 2007″… which means 2019 will be when the next crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Inflation is here and it’s BAD.

You see, inflation enters the economy in stages. It’s not as though the Fed begins to print money and POOF! inflation appears. It takes time.

The first stage occurs in the manufacturing/ production segment of the economy when you see producers suddenly paying more for the raw goods and commodities they use to manufacture/ produce finished goods.

You can see this development in the chart below. The highlighted periods featured times in which Producer Prices for commodities or raw goods spiked approached record highs.

One or two months of higher Producer Prices for commodities or raw goods is no big deal, but once you’re talking 6-8 months of steadily rising Producer Prices it’s significant. At that point manufacturers/ producers have to start raising the prices of finished goods or face shrinking profit margins

At that point you move into the second stage of inflation: when the prices of ordinary objects begin to increase.

Bear in mind that phase 2 can happen in different ways. Management at companies don’t just say “raise the price now!” Instead they can do different things such as charge the same amount for less of a finished product/ shrink the size of the container. This is called shrinkflation.

Another strategy is to start using cheaper/ lower quality raw goods (to reduce costs/ quality) while charging the SAME amount for the finished good. This too is inflation as the cost of the SAME item is MORE expensive, though it’s being masked because the QUALITY is LOWER and the price is the same.

We are now at THAT stage of inflation.

That Big Mac and Coke Now Comes With a Side Order of Inflation

U.S. companies are raising prices on everything from plane tickets to paint, passing on to customers higher costs for fuel, metal and food after years of low inflation.

Source: Wall Street Journal

This is when things start to get REALLY ugly for the economy.

And the bond market knows it.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.

This is a MASSIVE deal. This is effectively the bond markets telling the US that if it wants to issue debt, it’s going to cost it more.

And this is happening PRECISELY when the US is planning an astonishing $1.3 TRILLION deficit.

Mark my words,… 2019 will be when the US debt crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Inflation is here and it’s BAD.

You see, inflation enters the economy in stages. It’s not as though the Fed begins to print money and POOF! inflation appears. It takes time.

The first stage occurs in the manufacturing/ production segment of the economy when you see producers suddenly paying more for the raw goods and commodities they use to manufacture/ produce finished goods.

You can see this development in the chart below. The highlighted periods featured times in which Producer Prices for commodities or raw goods spiked approached record highs.

One or two months of higher Producer Prices for commodities or raw goods is no big deal, but once you’re talking 6-8 months of steadily rising Producer Prices it’s significant. At that point manufacturers/ producers have to start raising the prices of finished goods or face shrinking profit margins

At that point you move into the second stage of inflation: when the prices of ordinary objects begin to increase.

Bear in mind that phase 2 can happen in different ways. Management at companies don’t just say “raise the price now!” Instead they can do different things such as charge the same amount for less of a finished product/ shrink the size of the container. This is called shrinkflation.

Another strategy is to start using cheaper/ lower quality raw goods (to reduce costs/ quality) while charging the SAME amount for the finished good. This too is inflation as the cost of the SAME item is MORE expensive, though it’s being masked because the QUALITY is LOWER and the price is the same.

We are now at THAT stage of inflation.

That Big Mac and Coke Now Comes With a Side Order of Inflation

U.S. companies are raising prices on everything from plane tickets to paint, passing on to customers higher costs for fuel, metal and food after years of low inflation.

Source: Wall Street Journal

This is when things start to get REALLY ugly for the economy.

And the bond market knows it.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.

This is a MASSIVE deal. This is effectively the bond markets telling the US that if it wants to issue debt, it’s going to cost it more.

And this is happening PRECISELY when the US is planning an astonishing $1.3 TRILLION deficit.

Mark my words,… 2019 will be when the US debt crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Today voters in the United States will decide which political party controls Congress.

From the perspective of the financial markets, it doesn’t matter.

Regardless of whether Congress is controlled by Democrats or Republicans, the bull market in stocks is OVER. Yes we might get a bit of a rally based on the market digesting tonight’s results, but THE TOP is in for stocks.

That’s actually the good news. The BAD NEWS is that the US financial system might enter a crisis in 2019.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.

By the way, this is a global phenomenon with bond yields breaking out in Germany and Japan as well.

This is a MASSIVE deal. This is effectively the bond markets telling entire countries that if they want to issue debt, it’s going to cost them more.

And this is happening PRECISELY when these very same countries are planning on both issuing AND rolling over ENORMOUS amounts of debt.

Again… 2019 will be when the next crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Today voters in the United States will decide which political party controls Congress.

From the perspective of the financial markets, it doesn’t matter.

Regardless of whether Congress is controlled by Democrats or Republicans, the bull market in stocks is OVER. Yes we might get a bit of a rally based on the market digesting tonight’s results, but THE TOP is in for stocks.

That’s actually the good news. The BAD NEWS is that the US financial system might enter a crisis in 2019.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.

By the way, this is a global phenomenon with bond yields breaking out in Germany and Japan as well.

This is a MASSIVE deal. This is effectively the bond markets telling entire countries that if they want to issue debt, it’s going to cost them more.

And this is happening PRECISELY when these very same countries are planning on both issuing AND rolling over ENORMOUS amounts of debt.

Again… 2019 will be when the next crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Today voters in the United States will decide which political party controls Congress.

From the perspective of the financial markets, it doesn’t matter.

Regardless of whether Congress is controlled by Democrats or Republicans, the bull market in stocks is OVER. Yes we might get a bit of a rally based on the market digesting tonight’s results, but THE TOP is in for stocks.

That’s actually the good news. The BAD NEWS is that the US financial system might enter a crisis in 2019.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.

By the way, this is a global phenomenon with bond yields breaking out in Germany and Japan as well.

This is a MASSIVE deal. This is effectively the bond markets telling entire countries that if they want to issue debt, it’s going to cost them more.

And this is happening PRECISELY when these very same countries are planning on both issuing AND rolling over ENORMOUS amounts of debt.

Again… 2019 will be when the next crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Today voters in the United States will decide which political party controls Congress.

From the perspective of the financial markets, it doesn’t matter.

Regardless of whether Congress is controlled by Democrats or Republicans, the bull market in stocks is OVER. Yes we might get a bit of a rally based on the market digesting tonight’s results, but THE TOP is in for stocks.

That’s actually the good news. The BAD NEWS is that the US financial system might enter a crisis in 2019.

The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.

By the way, this is a global phenomenon with bond yields breaking out in Germany and Japan as well.

This is a MASSIVE deal. This is effectively the bond markets telling entire countries that if they want to issue debt, it’s going to cost them more.

And this is happening PRECISELY when these very same countries are planning on both issuing AND rolling over ENORMOUS amounts of debt.

Again… 2019 will be when the next crisis hits.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here.

https://phoenixcapitalmarketing.com/TEB.html
Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The Trump administration is doing everything in its power to prop up stocks.

On Friday we had not one but TWO verbal interventions from President Trump: both related to a potential trade deal with China. Stocks rallied on the news, but the rally was short-lived and stocks finished the day DOWN.

Expect more of this (failed interventions). While the vast majority of investors continue to cling to hype and hope, the reality is that the bull market that started in March 2009 is officially OVER.

The monthly S&P 500 chart has violated its bull market trendline for the first time since the 2009 low. This STRONGLY suggests the bull market is OVER.

We also have NEGATIVE divergence on the monthly chart for the S&P 500’s RSI. And its monthly MACD is on a Sell signal.

Just one of these signals would be trouble, but all three taken together (broken trendline, negative divergence on RSI, MACD “sell” signal), this is as close as you can get to “ringing the bell” at the top.

Will we get bounces and rallies? Yes. But unless you’re a nimble day trader, they’re going to be VERY hard to catch.

Bottomline: we are officially in a bear market, and stocks are going to collapse in a BIG way.

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.

We are giving away just 100 copies for FREE to the public.

Today there are just a handful left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The Trump administration is doing everything in its power to prop up stocks.

On Friday we had not one but TWO verbal interventions from President Trump: both related to a potential trade deal with China. Stocks rallied on the news, but the rally was short-lived and stocks finished the day DOWN.

Expect more of this (failed interventions). While the vast majority of investors continue to cling to hype and hope, the reality is that the bull market that started in March 2009 is officially OVER.

The monthly S&P 500 chart has violated its bull market trendline for the first time since the 2009 low. This STRONGLY suggests the bull market is OVER.

We also have NEGATIVE divergence on the monthly chart for the S&P 500’s RSI. And its monthly MACD is on a Sell signal.

Just one of these signals would be trouble, but all three taken together (broken trendline, negative divergence on RSI, MACD “sell” signal), this is as close as you can get to “ringing the bell” at the top.

Will we get bounces and rallies? Yes. But unless you’re a nimble day trader, they’re going to be VERY hard to catch.

Bottomline: we are officially in a bear market, and stocks are going to collapse in a BIG way.

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.

We are giving away just 100 copies for FREE to the public.

Today there are just a handful left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The Trump administration is doing everything in its power to prop up stocks.

On Friday we had not one but TWO verbal interventions from President Trump: both related to a potential trade deal with China. Stocks rallied on the news, but the rally was short-lived and stocks finished the day DOWN.

Expect more of this (failed interventions). While the vast majority of investors continue to cling to hype and hope, the reality is that the bull market that started in March 2009 is officially OVER.

The monthly S&P 500 chart has violated its bull market trendline for the first time since the 2009 low. This STRONGLY suggests the bull market is OVER.

We also have NEGATIVE divergence on the monthly chart for the S&P 500’s RSI. And its monthly MACD is on a Sell signal.

Just one of these signals would be trouble, but all three taken together (broken trendline, negative divergence on RSI, MACD “sell” signal), this is as close as you can get to “ringing the bell” at the top.

Will we get bounces and rallies? Yes. But unless you’re a nimble day trader, they’re going to be VERY hard to catch.

Bottomline: we are officially in a bear market, and stocks are going to collapse in a BIG way.

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.

We are giving away just 100 copies for FREE to the public.

Today there are just a handful left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research