Phoenix Capital Research's blog
We believe Fed’s actions would be more appropriately described as permitted cancerous beliefs to spread throughout the financial system, thereby killing Democratic Capitalism which is the basis of the capital markets.
This pattern played out in 1907, 1929, 1987, 2000 and most recently in 2008.
The market is facing an increasingly negative environment. Historically speaking April and May have not been big months for crises, but the number of negatives the market is facing today is rather unique.
We all know what will eventually unfold: another collapse, this one even worse than that of 2008. Until then, the fraud and fiction will continue. Everyone with a vested interest in stocks moving up will do everything they can to perpetuate this.
The Cyprus bail-in laid the ground for a global wealth tax. The next time a crisis hits, savers will be picking up the tab.
Market tops usually feature something called rotation. This occurs when investors move out of former top performing companies or market leaders, into safer investments.
The whole situation is very reminiscent of the computer trading, which led to the 1987 Crash.
The global Central Banks are relying increasing on verbal intervention. The reasoning here is very simple: actual monetary policy is proving to have marginal effects. In the US, every new wave of QE has had less and less impact on the stocks.
The Single Most Important Issue For the Power Elite In China… And What It Means For the Global EconomySubmitted by Phoenix Capital Research on 04/02/2014 23:13 -0400
The reason for the economic gimmicking pertains the political perspective of China’s economic data. As a communist regime, China’s government has one focus and one focus only. It’s not economic growth for growth’s sake, nor is it improving the quality of life for China’s population...
Considering that Europe’s problems took years to unfold, despite the clear evidence that its banking system was virtually insolvent, the fact that things appear calm in Europe today doesn’t really say much about the true state of affairs over there.
Warren Buffett once noted, Gold doesn’t do anything “but look at you.” However, the fact of the matter is that Gold has dramatically outperformed the stock market for the better part of 40 years.
As we noted earlier this week, the Fed is growing increasingly concerned of a bubble forming in the financial markets. Previously we noted that Janet Yellen was issued warnings regarding this.
The entire capital market structure has become mispriced.
As the cost of living increases around the globe, wage protests and strikes have become commonplace, particularly in the emerging market space:
Yellen’s decision to continue tapering QE indicates that she is aware of the fact the markets are getting out of control again or are approaching a bubble. This is further confirmed this by her decision to drop the 6.5% unemployment threshold as well as her suggestion that interest rate hikes could come as soon as six months after QE ends this coming December.