I generally shy away from making time-specific economic and stock marketstockcrashimages-1 predictions simply because odds are very low you’ll be correct on both the prediction and the timing. However, there are certain times when the environment is conducive for a prediction that comes along with an expiration date. Today is one of those times.
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The 1987 Doomers Are Back & They’re Wrong! Here’s Why
According to some pundits, the market is dangerously close to a repeat performance of 1987. Today, I'm going to show you why they're wrong.
Read More »Don’t Worry About the Threat of Higher Interest Rates Hurting Stocks – Here’s Why (+2K Views)
History clearly shows that stocks don't fall during periods of rising interest rates. Sure, they might fall a little when a rate hike is announced - maybe for a week or so - but they usually bounce back quickly - and then they go higher.
Read More »Talk of “Bright Future” for Real Estate Just a Bunch of Nonsense – Here’s Why
All of this talk about a "bright future" for real estate is just a bunch of nonsense. The yield on 10-year U.S. Treasuries is starting to rise aggressively again and, because mortgage rates tend to follow such increases, mortgage rates are going up. As monthly payments go up less people will be able to afford to buy homes at current prices and this will force home prices down. As such, another great real estate crash is inevitable. Let me explain further. Words: 995 ; Charts: 1
Read More »HELP! I’m Long Government Bonds!
One look at the chart below clearly illustrates that owners of Government bonds need all the help they can get right now!
Read More »When the Debt Bubble Bursts We’re Going to See Economic Chaos So Get Ready – NOW! (+7K Views)
Never before has the world faced such a serious debt crisis. Yes, in the past there have certainly been nations that have gotten into trouble with debt, but we have never had a situation where virtually all of the major powers around the globe were all drowning in debt at the same time. Right now, confidence is being shaken as debt levels skyrocket to extremely dangerous levels. Many are openly wondering how much longer this can possibly go on. [Here's my take on the situation.]
Read More »Lessons of 2008 Forgotten – Debt Threatens to Undo the World Again (+2K Views)
Little has been done in the past six years to restructure economies and cut debt i.e. learn the lessons of 2008. Because we’ve partially recovered from that traumatic period, that’s led to complacency. All the while, the debt that caused the bust in the first place has compounded and threatens to undo the world again. Let’s hope it doesn’t come to that.
Read More »They’re Everywhere! They’re Everywhere! A Recap of the World’s Current Crises, Crashes & Catastrophes and Coming Collapse & Chaos (+2K Views)
So much has been written about what various authors refer to as the economic (in alphabetical order) abyss, apocalypse, Armageddon, avalanche, catastrophe, chaos, cliff, collapse, crisis, disaster, downturn, endgame, meltdown, pain, reality, risks, situation, train wreck, tsunami, turmoil that faces the nations of the world I thought a source article of what has been said about the situation would be of interest. Have a look.
Read More »Global Liquidity Supports a Gold Price of $1,780/ozt. (+2K Views)
There is a remarkable correlation between the prevailing level of global liquidity (defined as the sum of the U.S. monetary base and the foreign holdings of U.S. Treasuries) and the price of gold per troy ounce. The current correlation suggests a gold price of $1,780 as illustrated by the chart below.
Read More »Current Stock Market High Is NOT a Bearish Signal – Here’s Why
The Dow has begun a major rally 13 times over the past 112 years which equates to an average of one rally every 8.6 years so, as it stands right now, the current Dow rally that began in March 2009 would be classified as well below average in both duration and magnitude.
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