Feb 09

Legendary Investor Jim Rogers Warns: “Most People Are Going To Suffer The Next Time Around”:

Back in the 1970’s as recession gripped the world for a decade, stocks stagnated and commodities crashed, investor Jim Rogers made a fortune. His understanding of markets, capital flows and timing is legendary.

As crisis struck in late 2008, he did it again, often recommending gold and silver to those looking for wealth preservation strategies – move that would have paid of multi-fold when precious metals hit all time highs in 2011. He warned that the crash would lead to massive job losses, dependence on government bailouts, and unprecedented central bank printing on a global scale.

Now, Rogers says that investors around the world are realizing that the jig is up. Stocks are over bloated and central banks will have little choice but to take action again. But this time, says Rogers in his latest interview with CrushTheStreet.com, there will be no stopping it and people all over the world are going to feel the pain, including in China and the United States.

We’re all going to suffer… I can think of very few places that won’t suffer. But most people are going to suffer the next time around.

Central banks will panic. They will do whatever they can to save the markets. Continue reading »

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Feb 08

Tech-Bubble-2.0-460x348

Dot-Com Bubble 2.0 Is Bursting: Tech Stocks Are Already Down Half A Trillion Dollars Since Mid-2015:

Do you remember how much stocks went down when the first dot-com bubble burst?  Well, it is happening again, and tech stocks are already down more than half a trillion dollars since the middle of 2015.  On Friday, the tech-heavy Nasdaq dropped to its lowest level in more than 15 months, and it has now fallen more than 16 percent from the peak of the market.  But of course some of the biggest names have fallen much more than that.  Netflix is down 37 percent, Yahoo is down 39 percent, LinkedIn is down 60 percent, and Twitter is down more than 70 percent.  If you go back through my previous articles, you will find that I specifically warned about Twitter again and again.  Irrational financial bubbles like this always burst eventually, and many investors that got in at the very top are now losing extraordinary amounts of money.

On Friday, tech stocks got absolutely slammed as the bursting of dot-com bubble 2.0 accelerated once again.  The following is how CNBC summarized the carnage… Continue reading »

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Feb 03

“We’re Nearing The End” David Stockman Warns, Retail Investors Are “Heading For The Slaughter”:

Former Reagan White House Budget Director David Stockman says retail investors are going to take, yet, another very big hit. Stockman explains,

“The retail investor waded in again. The sheep lined up and, unfortunately, are heading for the slaughter one more time. I think it is very hard to see how this Baby Boom generation, with 10,000 of them retiring a day, can afford one more devastating crash in their stock holdings. That is, unfortunately, what we are heading for. That’s why I say it’s dangerous. When the bubble breaks, it will spill and flow throughout the Main Street economy.”

Stockman warns the next crash will be bigger than any other in history. Stockman, the best-selling author of “The Great Deformation,” says, Continue reading »

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Feb 02

Jan 28, 2016

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Jan 25

How Billionaires Are Investing In 2016: “The Only Winning Move Is Not To Play The Game”:

Ever since 2009, when we first showed how broken the capital markets are first at the micro level, thanks to the pervasive spread of parasitic, frontrunning algos, and then at the macro, as a result of constant, artificial central bank intervention and levitation, we have advised readers that the best option is to simply avoid rigged, manipulated markets altogether. Now, 7 years later, the world’s richest people agree.

Remember when we warned virtually every single day for the past 7 years that constant central bank and HFTs manipulation will lead to a market so broken nobody will have any faith in price discovery or asset valuation until everything collapses and is rebuilt from scratch? Well, we are delighted to announce that this is now conventional wisdom, and as a result every so-called “prominent investor” is now resistant to putting on fresh positions and expected asset prices to head downward, according to the WSJ. Continue reading »

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Jan 21

George Soros hand signGeorge Soros As The Fighting Uruk-hai With Jacob Rothschild As Saruman

Soros Reveals He Is Short The S&P 500: Warns China Will Have A Hard-Landing, Says “Fed Hike Was A Mistake”:

There’s been no shortage of commentary from market heavyweights this week thanks to the World Economic Forum in Davos, but for anyone who hasn’t yet gotten their fill of billionaire talking heads, George Soros gave a sweeping interview to Bloomberg TV on Thursday, touching on everything from China to Fed policy to Vladimir Putin to Europe’s worsening refugee crisis. The most important point – for markets anyway – came when Soros revealed that he is short the S&P, and long TSYs.

 

 

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Jan 21

timebomblarge

The U.S. Is At The Center Of The Global Economic Meltdown:

While the economic implosion progresses this year, there will be considerable misdirection and disinformation as to the true nature of what is taking place. As I have outlined in the past, the masses were so ill informed by the mainstream media during the Great Depression that most people had no idea they were actually in the midst of an “official” depression until years after it began. The chorus of economic journalists of the day made sure to argue consistently that recovery was “right around the corner.” Our current depression has been no different, but something is about to change. Continue reading »

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Jan 21

polar-bear

Global Stocks Enter Bear Market: One-Fifth Of All Worldwide Stock Market Wealth Is Already Gone:

It’s official – global stocks have entered a bear market.  On Wednesday, we learned that the MSCI All-Country World Index has fallen a total of more than 20 percent from the peak of the market.  So that means that roughly one-fifth of all the stock market wealth in the entire world has already been wiped out.  How much more is it going to take before everyone will finally admit that we have a major financial crisis on our hands?  30 percent?  40 percent?  This new round of chaos began last night in Asia.  Japanese stocks were down more than 600 points and Hong Kong was down more than 700 points.  The nightmare continued to roll on when Europe opened, and European stocks ended up down about 3.2 percent when the markets over there finally closed.  In the U.S., it looked like it was going to be a truly historic day for a while there.  At one point the Dow had fallen 566 points, but a curious rebound resulted in a loss of only 249 points for the day. Continue reading »

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Jan 20

20160120_EOD

Dumpster-Diving Massive-Short-Squeeze Rescues Stocks From 2014 Ebola Lows

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Jan 20

Ray-Dalio

“If Assets Remain Correlated, They’ll Be A Depression”: Ray Dalio Says QE4 Just Around The Corner:

CNBC’s Andrew Ross Sorkin and Becky Quick, donning their finest goose down bubble coats to remind viewers they’re reporting live from scenic Davos, generously took some time out of their busy schedules to chat with Ray Dalio on Wednesday and unsurprisingly, the “zen master” again predicted the Fed will reverse course and embark on more QE.

Dalio begins by noting that the Fed’s move to inflate financial assets by pumping money into the system means there’s an “asymmetric risk on the downside.”

The rationale is simple: the trillions in fungible, excess cash the Fed unleashed in the wake of the crisis has driven asset prices into bubble territory and at this juncture, there’s essentially nowhere to go but down. Continue reading »

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Jan 16

CNN Reassures Investors: “Don’t Panic… America’s Economy Is Still In Good Shape”:

Forget for a moment that U.S. stock markets have seen their worst start to a new year since the Great Depression or that some $2.5 trillion in wealth has been evaporated in less than two weeks.

CNN says it’s hardly the time to panic:

Time to panic? Hardly.

There are plenty of reasons to relax, especially if you are a U.S investor. Here are the top two:

1. America’s economy is still in good shape.

2. Staying in stocks pays off. Since World War II, investors who remained in stocks for at least 15 years made money Continue reading »

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Jan 15

S&P 500 Worst Start To A Year ... EVER

Source

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Jan 15

US Stock Index

Global Stock Market

Update:

Wall Street in panic: Dow Jones, S&P 500 plunge 3 percent as oil prices fall

Black Friday

 

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Jan 13

20160113_EOD

Markets In Freefall: Stocks Extend Worst Ever Start To Year

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Jan 12

Rabobank: “Everyone Rational Wants To Sell, While Everyone Official Has Been Told To Buy”

 

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Jan 12

Volatility Ahead

“Fasten Your Seatbelts” – UBS Warns Of “Record Spikes In Volatility” If This Level Breaks

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Jan 12

H/t reader squodgy:

“Here is a schedule of all the main world Stock Market Index Graphs which shows very clearly that something catastrophic is about to happen.”


keep calm and sell everything

Stocks To Crash Worldwide In 2016:

One of the most reliable truisms of stock markets worldwide is that History Is Prologue…and that Market Cycles are immutable…where only time and magnitude change.  During the past 20 years Wall Street has enjoyed three Bull Markets…and the first two were followed by devastating Bear Markets. Specifically, US stocks fell -37% in the 2000-2002 bear market, while the DOW stocks index plummeted -54% in the 2007-2008 debacle.

And it is imperative to take note the current US Bull Market is one of the longest secular uptrend periods in history of rising stock prices. Consequently, as history is testament an eventual and inevitable Bear Market will soon follow.  What is probably unique this time is the fact that major stock markets worldwide appear to be moving in lethal concert with the US in developing Bear Market trends of declining stocks.  Consequently, our forecast of evolving global Bear Markets will be demonstrated by the price charts of the 20 major stock indices in the world (the vertical white lines pinpoint where each bear market began per the Technical Indicators shown).  These major markets are:

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Jan 07

Dow Jones Worst Start Ever

This Is The Dow’s Worst Start To The Year… Ever:

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Jan 05

“We Frontloaded A Tremendous Market Rally” Former Fed President Admits, Warns “No Ammo Left”:

In perhaps the most shocking of mea culpas seen in modern financial history, former Dallas Fed head Richard Fisher unleashed some seriously uncomfortable truthiness during a 5-minute confessional interview on CNBC. While talking heads attempt to blame China for recent US market volatility, Fisher explains “It is not China,” it is The Fed that is at fault: “What The Fed did, and I was part of it, was front-loaded an enormous rally market rally in order to create a wealth effect… and an uncomfortable digestive period is likely now.” Simply put he concludes, there can’t be much more accomodation, “The Fed is a giant weapon that has no ammunition left.”

Must watch, when a shocked Simon Hobbs (at 5:10) is unforgettable: “Will The Fed come on and say ‘we’re sorry, we over-inflated the market’ when it crashes?” We doubt it.

Here is CNBC’s higher quality video, which for some reason seems to have edited out some of the more informative parts of the interview. Continue reading »

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Jan 02

2015 Was First Pre-Election Year to End In the Red Since the Great Depression:

The year before elections is almost always the best year for stocks.

Investors notes:

Pre-election years takes the top spot as the best-performing year for stocks.

UBS reports:

Ahead of US Presidential Elections  (Pre-Election Year or Year 3 and Election Year or Year 4) politicians often promote an accommodating and pro-business agenda so that the economy is  strong,  stock  market  is  bullish,  and  voters  are  upbeat  heading
to the polls.

The Stock Trader’s Almanac notes (via a press release by publisher Wiley): Continue reading »

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Dec 28

Meanwhile, Over At The “New York” Stock Exchange: Even More Lasers:

This, ladies and gentlemen, is what “trading” has become.

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Dec 22

FYI.


Brutus

Et Tu, Brute? (How Empires Die):

The state-owned Bank of China has been ordered by an American court to hand over customer information to the US. The bank has refused to comply, as to do so would violate China’s privacy law. The US court has subsequently ordered the Bank of China to pay a fine of $50,000 per day.

Any guess as to how this is likely to turn out?

China is a sovereign nation, halfway around the globe from the US, yet the US seems to feel that it’s somehow entitled to set the rules for China (as well as the other nations in the world). When China sees fit to develop islands in the South China Sea that it has laid claim to for centuries, it begins to hear threatening noises from the US military. A candidate for US president declares that he would buzz the islands with Air Force One, the Presidential jet, saying, “They’ll know we mean business.” Continue reading »

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Dec 20

Inferno

The Rate Hike Stock Market Crash Has Thrown Gasoline Onto An Already Raging Global Financial Inferno:

If the stock market crash of last Thursday and Friday had all happened on one day, it would have been the 7th largest single day decline in U.S. history.  On Friday, the Dow Jones Industrial Average was down 367 points after finishing down 253 points on Thursday.  The overall decline of 620 points between the two days would have been the 7th largest single day stock market crash ever experienced in the United States if it had happened within just one trading day.  If you will remember, this is precisely what I warned would happen if the Federal Reserve raised interest rates.  But when news of the rate hike first came out on Wednesday, stocks initially jumped.  This didn’t make any sense at all, and personally I was absolutely stunned that the markets had behaved so irrationally.  But then we saw that on Thursday and Friday the markets did exactly what we thought they would do.  The chief economist at Gluskin Sheff, David Rosenberg, is calling the brief rally on Wednesday “a head-fake of enormous proportions“, and analysts all over Wall Street are bracing for what could be another very challenging week ahead. Continue reading »

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Dec 18

20151218_EOD

“Quad Witches, Bitches” – Stocks Crash On OpEx

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Dec 16

As for now everything is awesome …

20151216_EOD

Fed’s First Rate Hike In 9 Years Sparks “Goldilocks” Buying Of Risk Assets

Waiting for reality to set in (some day)…

“Wait, why is this line going down?”


Fed May Have To Drain As Much As $1 Trillion In Liquidity To Push Rates 25 bps Higher:

It’s 2:00:01 pm and the Fed has just announced it will hike rates by 25 bps while using very dovish language to convey that just like “tapering was not tightening” in 2013, so “tightening isn’t really tightening”, and unleashing a massive buying order.

So far so good. But the real question is what does this mean for post-kneejerk market dynamics, and the one most important variable of all: liquidity. Continue reading »

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Dec 14

Collapse

December 14th To 18th: A Week Of Reckoning For Global Stocks If The Fed Hikes Interest Rates?:

Are we about to witness widespread panic in the global financial marketplace?  This week is shaping up to be an absolutely critical week for global stocks.  Coming into December, more than half of the 93 largest stock market indexes in the world were down more than 10 percent year to date, and last week stocks really started to slide all over the world.  Here in the United States, the Dow Jones Industrial Average is down about 600 points over the past week or so, and at this point it is down more than 1000 points from the peak of the market.  That brings us to this week, during which the Federal Reserve is expected to raise interest rates for the very first time since the last financial crisis.  If that happens, that could potentially be enough to accelerate this “slide” into a full-blown crash.

And just look at what is already happening.  Trading for stocks in the Middle East has opened for the week, and we are already witnessing tremendous carnageContinue reading »

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Dec 11

20151211_EOD

Stocks Slammed To Worst Week Since Black Monday Amid Crude & Credit Carnage

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Dec 11

“Everything’s Crashing”:

The writing has been on the wall for a few days/weeks, but it appears a combination of global FX and equity turmoil and domestic corporate debt market collapse is finally starting to roil US equity markets. The Dow is down over 600 points in the last week or so, bond yields are collapsing, the USDollar is tumbling, crude is crashing, and junk bonds are in free-fall.

As expected in the aftermath of the Third Avenue gating (and as previewed weeks and months ago) Junk debt is getting destroyed:

20151211_upd1

And stocks are catching on: Continue reading »

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Dec 03

Ht/reader squodgy:

“This is a good video showing how the Economy of USA really is.”

Yes, a good video indeed.


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Nov 12

Ray Dalio CFR
“Do You Own Gold?” “Oh Yeah, I Do” Says Ray Dalio at CFR


World’s Largest Hedge Fund Dumped 31% Of Its US Equity Holdings In The Third Quarter:

The world’s biggest hedge fund, Ray Dalio’s Bridgewater Associates got into some hot water in the past few months when it was accused by many members of the underperforming “hedge fund hotel” club for being the “risk parity” catalyst that sent the market tumbling in August, and perhaps for being the catalyst for the August 24 market crash.

And while the bulk of Bridgewater’s asset are in various commodities and futures, most of which are never reported to the public, earlier today it did disclose its long holdings in public equities when it filed its latest 13F. Perhaps those accusing Bridgewater of being the market-moving catalyst did have a point, because after posting a total AUM of $10.8 billion at June, this total declined by a whopping 31% to just $7.5 billion as of September 30.

Here is what Brigewater was dumping (and adding). Continue reading »

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