10 Market Warning Indicators The Media Won't Tell YOU
Blunt Advice for Market Realists
As markets continue to bounce like a fish on the dock by greater than 10% up or down, I wanted to offer readers a chance to pause for a reality check on the immense risks ahead which face our markets--and hence our lives.
In short, if you are managing your family's economic health, simple and blunt facts like those discussed below require a few minutes of your attention.
Right now, the Fed, White House and Congress are tossing trillions of dollars at an economy and securities market that has been pushed to, and then over, the edge.
Naturally, all eyes and headlines point to the devastating impact of COVID-19, and we are certainly not here to underestimate its dramatic impact on our personal and financial lives.
That said, we are also not here to offer false hope, false blame or false support for a financial system that has been addicted to Fed stimulus since 2009.
This system, as my #1 Amazon book, Rigged to Fail, makes clear is about to blow apart.
As of today, for example, markets are temporarily rebounding due to the recent Senate stimulus bill.
Yesterday, the DOW saw its greatest one-day percentage climb (11%) since 1933.
But given that 1933 was during the Great Depression, one has to at least consider the irony in applauding a record that date backs that to that era...
In fact, there are many reasons to be concerned that we will reach another depression-like era going forward, and the report below explains this with facts rather than drama.
In short, we are here to remind investors that COVID-19 is not the cause of the current market disaster, but merely the straw which broke the camel's back-- a back that has been made weak by over a decade of central bank (and hence Wall Street) addiction to printed money, cheap debt and complete dishonesty when it comes to inflation, earnings and employment reporting.
This morning, for example, Ben Bernanke was on Squawk Box declaring that the virus is like a snow storm, and that banks are stronger today than they were in 2007--just before markets tanked into the greatest recession seen since 1929.
The absurd irony of trusting a man like Ben Bernanke for advice in a time of crisis cannot be understated enough.
It was that same Ben Bernanke who calmed investors in 2007, telling the world that our economy and markets were all fine and not to worry.
Less than a year later, the markets tanked and the world went into a recession.
Print trillions of dollars out of thin air, increase the Fed's balance sheet by 5X, crank interest rates to zero and thus encourage the greatest public and private debt bubble ever seen in the US or history of the world ($75 trillion) and then have the nerve to call that a "recovery."
Folks, that's not a recovery--it's a debt-induced set up for just another "08-Moment," which we are steering towards now, despite current market up-ticks based upon, well, more debt...
As successful veteran hedge fund managers, we know that when deliberate dishonesty collides with record-breaking debt levels (think of the sub-prime scam of 2008 or the dot.com "miracle," and then implosion, of 2000), the party is about to end.
For over a year, we've been tracking this addiction, party and the hangover to come for thousands of readers.
Today, I am sharing in the critical link below, my latest evidence and insights on the 10 Most Ignored Indicators of Market Risk Ahead.
I highly recommend that in your current "lock-down mode," you step a few minutes away from your Netflix binge (I've had many) and take a few minutes to review this critical reality check.
The key to staying safe in these markets is to stay informed with facts rather than bear/bull opinions.
Enjoy these facts, but buckle up...they're not pretty.
And please, don't rely on "elites" like Ben Bernanke to get you through the current market crisis. If you want to see the facts behind their so-called "guidance" just click here and see/read for yourselves.
Your family's health depends in part upon its economic health, and for those of you with 401K's, IRA's or other retirement plans, I highly suggest you get your guidance from those who know the markets, not those who just "pitch" the markets.
The Fed's record for accurately and honestly forecasting a recession is 0 in 9. Just saying...