Phoenix Capital Research's blog

This is only going to usher in the next round of the Great Crisis that much faster. Only this time around, entire countries will go bust, NOT just banks.

So… the economy is weak, corporate profits are unlikely to rise much, if at all, and stocks are sharply overvalued… ALL of these point towards another collapse in the markets…

The Fed has ended QE. And it won’t be launching a new program anytime soon. So when this rally ends and stocks collapse, the Fed won’t be coming to the rescue.

For five years we’ve been told that the world was in recovery. If things are SO great… why is it that even a 10% correction in stocks triggers panic from the Fed?

The markets continue to operate based on complete delusions.

When QE ends today, the Fed balance sheet will stop expanding. Which means stocks will be standing on their own two legs for the first time in the last two years. Unfortunately, those two legs: economic growth and earnings are both weak.

How this will all end up is obvious to anyone: the EU Crisis will return and the whole mess will come crashing down.

The investment world is counting on China and the US to drive global GDP growth next year. Unfortunately it's banking on a false assumption.

Having just engaged in QE for TWO SOLID YEARS STRAIGHT the Fed would totally destroy any and all credibility in its monetary policies to engage in QE anytime within the next three to six months.

All the talk of “helping small business” and “creating jobs” is just that: talk. Those who actually show initiative to create business shouldn’t be overburdened with tax loads and bureaucratic red tap.

Janet Yellen is a career academic. This is not necessarily a bad thing. However, unlike most career academics, Janet Yellen is in charge of the US economy. In this light, one has to ask aloud, “why would you put someone with absolutely zero experience in creating jobs, growing a business, lending money, hiring, firing, etc. in

Put another way, those individuals responsible for running the largest companies in the US, who know more about their companies’ growth prospects and the economy have used the Fed’s policies to cash out.

This is all only the beginning. When the smoke clears, stocks could be 30% lower than where they are now, if not more.

The systemic risks underlying the Financial Crisis are in no way resolved. 

So… we’ve got a weak and fragile market, losing two of its biggest drivers… at the same time that the Fed is ending QE. This is a recipe for a potential bloodbath. If we wipe out the “bubble” portion of the market move from 2009, we’re going to 1,250 on the S&P 500.