We have a Stock Market Bubble, excessive valuations, investors are complacent, everyone runs for the exits simultaneously, there are abundant catalysts out there in the world, the Crash occurs over next 12 months.
Since Trump’s election, the US stock market has climbed unstoppably along a remarkably steep path to round off at a teetering height. Is this the irrational exuberance that typically marks the last push before a perilous plunge?
The election of Donald Trump was inevitable and would precede the triggering of the final stage of our ongoing economic crisis. The Fed’s timing of their latest rate hike is highly strategic, not only setting the stage for a series of hikes that will crush U.S. stock markets this coming year and finally shock the public out of their fiscal stupor, but it also maneuvers the crisis right into the lap of Donald Trump and the conservative movements that support him.
"...they’re very dangerous... I actually think that the U.S. is on the ragged edge of a civil war... because the people that elected Trump are hated on a visceral level by the preachers that are around the Democratic Party and the Deep State, and that includes Republicans..."
"The trends over H1 2017 should be higher (especially US) equities and yields, steeper curves, a stronger USD, and mixed performance in credit (especially in the IG sphere) and EM. So for me, most likely over the middle two quarters of 2017, I can see the S&P 500 cash index up at 2450 +/- 50 points, with the Nasdaq weakest and the Dow strongest of the big three US indices."
China's central bank stepped in with record liquidity injections last week, and "urged" major commercial banks to lend to non-bank financial institutions after many suspended cross funding operations as interbank lending froze amid tight liquidity conditions.
Chinese authorities halted trading in key bond futures for the first time on Thursday, as panicky investors sold the securities on concern that a long, credit-fueled bull market was coming to an end amid slowing growth, capital outflows and heightened government concern about asset bubbles.
Within the political-financial establishment, the more things change, the more, it seems, they stay the same. As Trump moves ahead with his cabinet picks, several of them already stand out in a Mellon-esque fashion for their staggering wealth, their legal entanglements, and the policies they seem ready to support that sound like eerie throwbacks to the age of Harding.
"Withdrawal of monetary accommodation would also accentuate the problem of a strong USD, uncover geopolitical complacency, and remove the lid from market volatility. In fact, our view is that further withdrawal of monetary accommodation would likely lead to turmoil in financial markets."
"It's crazy. This is the explosion of an era. It's the apocalypse of the media, TV, the big newspapers, the intellectuals, the journalists… This is a wide-ranging F*** off." Italy is the next flashpoint. A “No” vote in Italy is virtually assured at this point. But it won’t be the end of the anti-elite surge. Voters in Europe’s biggest countries could soon throw out their “mainstream” parties in favor of populist and Eurosceptic alternatives...