Robert Kiyosaki predicts that a stock market crash will begin in 2017. The Rich Dad Poor Dad author says that Baby Boomers have to legally start withdrawing money from their 401ks in 2017 and that will cause the stock market to crash.
Why do all these dire predictions always come from people who are (Read More….)
Traders get confused by price action in bonds relative to the stock market because of perma-bear websites like ZeroHedge. Folks, the most reliable signal for how bonds impact the stock market is very simple.
Look At Bond Prices
Your primary research into bonds should always start with bond prices first, then yields second. A bond (Read More….)
We know what Trump is bringing to the globalists brawl that has already begun with shots like China threatening a trade war against the US. Globalists are not going just to roll over quietly for a Trump Administration.
Lisa Haven thinks that globalists could crash the US economy in response to Trump’s win. Lisa thinks (Read More….)
When I expressed caution to a trader last week and that the market exists to ruin the greatest number of amateur traders at any given time, the trader replied I don’t believe that. Another trader I expressed caution to about this market told me I have to just ride the wave higher.
Folks, your goal (Read More….)
The Shiller P/E ratio has hit its highest level since October 2007 and the start of the last bear market.
The last time the Shiller P/E was above 27 was in October 2007, the start of the last bear market.
Robert Shiller, the creator of the Shiller P/E ratio, warns people not to use (Read More….)
YouTube subscriber Tami asks, “I saw the YouTube video on the stock market crash projections. My son and I watch you frequently and think you are great. Do you think it is still good to stay in gold and mining stocks?”
Thank you so much for your kind words Tami. Here is how I think (Read More….)
The yield curve continues to flatten at an alarming rate. The spread between the two years and the 30-year bond is the lowest since 2008.
In a note to clients, Deutsche Bank writes…
Since the UK referendum the US yield curve has flattened to new post-crisis lows… This relentless flattening of the curve is (Read More….)
Across the country, the minimum wage is being raised. In 15 cities, across five different states, minimum wage increases went into effect on July 1, 2016.
Minimum wage increases are bad for the economy because they will result in fewer people having jobs.
In August of 2015, I did an economic video lesson on what (Read More….)
China’s manufacturing sector continues to contract. The Caixin China General Manufacturing PMI for June came in at 48.6. For the last three months in a row, China’s PMI has come in below 50.
Chinese corporate bond market defaults are on the rise. So far in 2016, 34 defaults are on the record books totaling (Read More….)
A stock market crash in July could be coming straight at us. The Federal Reserve illusion of an improving US economy came to an end with June’s Employment Situation report. Economists thought the US economy created 160,000 jobs in May. The actual number was a shocking 38,000.
As the chart of non-farm payrolls (Read More….)
Pending home sales have fallen the most since May 2010. The National Association of Realtors (NAR) is spinning this as potential buyers are being thwarted by a shortage of affordable homes because sales are so good.
Lawrence Yun, NAR chief economist, writes…
With demand holding firm this spring and homes selling even faster than (Read More….)
Brexit has crashed German bund yields. Current rules prevent the ECB from buying bonds that yield less than -0.40 percent.
An estimated 800 billion euros of German bonds are not eligible for the EBC’s asset-purchase program.
Brexit made the number of German bunds ineligible for ECB QE much worse. Money from across Europe has (Read More….)
The significant negative impact on US markets from Brexit is the rising US dollar. It is the rising dollar which will ultimately cause a stock market crash. Traders from around the world are selling out of the British Pound and the Euro, and buying safer US dollars.
The rising US dollar is harmful to (Read More….)
As goes Japan, so goes the S&P 500. History shows that the Japanese Nikkei 225 is an excellent predictor of a stock market crash in the US.
The red line is the Japanese Nikkei 225 index, and the blue line is the S&P 500 index. In 2000 and 2008, Japanese stocks turned down and (Read More….)
George Soros has come out of retirement to personally oversee big bearish bets against the market including bearish derivatives and huge positions in gold and gold mining stocks.
The spooky thing is that the last time Soros did this was in 2007, right before the last recession.
George Soros is a big supporter (Read More….)
The Employment Situation report released for May crashed folks. Nonfarm payrolls were much weaker than expected in May, coming in at 38,000 with the two prior months revised a total of 59,000 lower! The Verizon strike is a negative in the data but not a decisive one, pulling down telecommunication payrolls down by 37,000 in (Read More….)
Earnings are the amount of profit that a company produces during a quarter. Earnings are the most important catalyst that drives stock price.
Folks, earnings are crashing. That’s a huge red warning flag waving right in front of investors faces but many are choosing to stick their heads in the sand.
This chart shows earnings (Read More….)