8-28-19

The numbers are telling us that we have never been closer to the next economic collapse than we are right now.  The storm clouds that were gathering on the horizon are now directly above us, and suddenly the mainstream media is filled with stories about when the next stock market crash will begin and the effect that this may have on President Trump’s chances of winning in 2020.  In fact, there has been so much chatter about this that even President Trump is talking about it.  All over television, experts are breathlessly speculating about when the coming major stock market crash will begin, and they are dispensing lots of advice about how people should be preparing for it. —

Trump has done a ‘dramatic turnaround’ to the economy: Marc Short

Fox Business

11 NEW Reasons Why So Many Experts Believe That Economic Collapse & Stock Market Crash Is Imminent

Epic Economist     So what evidence has led so many of these talking heads to come to such a conclusion? Well, the following are 11 reasons why so many experts now believe that a U.S. economic collapse is imminent… In that list, I didn’t even mention our rapidly escalating trade war with China.  The two largest economies on the entire planet are engaged in an extremely bitter trade dispute, and that alone has the potential to crash the entire global economy into a very deep downturn. On the surface, the Trump administration is trying to assure us that everything is going to be just fine, but behind the scenes they appear to be preparing for the economic collapse.  If the U.S. economy really was “booming”, an emergency payroll tax cut wouldn’t make any sense at all. But if we are on the verge of a very serious financial collapse, then such a move would make perfect sense. Of course the U.S. is definitely not the only major economy that is facing serious troubles.  In fact, signs of economic trouble have been emerging all over the globe lately. The economies in Germany, Brazil, Italy, Mexico and a number of other countries are also showing vulnerabilities, experts say. The uncertainty is exacerbated by fears of the potential financial fallout that could happen if the United Kingdom leaves the European Union in October without first reaching a deal on the terms of its departure. (Continued)

Is This Still a Bull Market? (w/ Chris Verrone)

Real Vision Finance   Chris Verrone, partner at Strategas Research, sifts through the noise to answer a timely question on every investor’s mind: is the bull market over for stocks? In this interview with Alex Rosenberg, Verrone analyzes the market’s recent price action, breaks down some key contrarian signals, and notes where to draw the line in the sand for the S&P 500. Filmed on August 27, 2019.

CONTINUED: We haven’t seen talk like this in a very, very long time.  For many people, the extreme pain caused by the economic collapse of 2008 and 2009 has almost faded from memory, but the truth is that many experts believe that what is ahead is going to be even worse. If everything was going to be just fine, President Trump would not be trying to get the Federal Reserve to make extremely deep interest rate cuts.  In life, what people do is far more important than what they say, and the moves that global leaders are making right now are telling us that huge trouble is coming. So enjoy the relative stability that we are currently experiencing while you still can, because it looks like it won’t be lasting for too much longer. Epic Economist

A ‘Lehman-like’ market disaster could happen this week, analyst warns

Nomura analyst Masanari Takada earlier this month warned of a “Lehman-like” plunge in the stock market. On Monday, he gave some urgency to that warning.

‘The U.S. stock market especially is facing its greatest test of the year.’

 

Bearish sentiment currently correlates well with sentiment before the collapse of investment bank Lehman Brothers in 2008, Takada argues. So investors should prepare for carnage in the stock market due to “panic-selling by fundamentals-oriented investors and systematic selling by trend-following technical investors.”

Takada told investors in a Monday note on that stock market sentiment hasn’t improved from when he first issued his bearish macro take, which CNBC cites as the most pessimistic on Wall Street.

“The correlation between sentiment then and now remains quite high,” Takada said, referring to the Lehman collapse. “Even the passing risk-on phase after the initial shock of the yield curve inversion (this month)… and the risk-off mood that struck on 23 August neatly track the pattern recorded in 2008.”

Also of note, the week before the U.S. Labor Day holiday weekend tends to have low trading volume, which can lead to wider swings in the market.

“The continued liquidation of long positions in equities by trend-chasing investors could convince one global macro hedge fund after another that now is the time to start paring longs,” Takada wrote.

Earlier this month, the Dow DJIA, +0.72% suffered its worst day of the year, losing 800 points as the yield-curve inversion triggered a rush of selling.

No Lehman-like moment for U.S. stocks SPX, +0.51% Tuesday, but they did reverse course with the blue chips off triple-digits in afternoon trades.

WND

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