This page has been archived and commenting is disabled.
Graham Summers’ Weekly Market Forecast (Nothing’s Changed Edition)
We are now into the second week of 2012 and frankly I can’t see any fundamental reason to be bullish about things. The European debt Crisis continues to accelerate, with France’s borrowing costs rising dramatically and the yield on Italy’s ten-year back above 7% despite massive intervention on the part of the ECB.
Indeed, it’s quite telling that the one country that kicked off the entire EU Crisis, Greece, still hasn’t gotten its fiscal house in order: there’s only 37 billion Euros’ worth of aid left from the first bailout of 110 billion Euros… and the EU has yet to hammer out details of the second Greek bailout, worth an additional 150 billion Euros.
If the ECB/ IMF/ Central Banks cannot solve the Greece situation… what hope do they have of dealing with the larger issues of Italy and France? Heck, even Germany now sports a Debt to GDP ratio that exceed the Maastricht Treaty requirements and they haven’t recapitalized their banks.
As a result of this, shares of even the supposedly “rock solid” German banks have come under stress, breaking down into the gap established during the 2008 Crash.
Aside from Europe, we find signs of a brewing solvency Crisis in Japan, an economic slowdown in China, Iran is playing war games with the Strait of Hormuz, and the US is entering a second recession within the context of a larger Depression.
Against this highly deflationary backdrop, the one primary prop for the markets is hope of more juice/credit from the world Central Banks. However, even that prop is losing its strength: the gains of the last coordinated Central Bank intervention lasted just a few weeks.
Moreover, if the world Central Banks are about to launch another massive wave of liquidity, the commodity space sure isn’t picking up on it…
Gold has broken its post-Crash trendline:
While Copper appears to be forming a massive Head and Shoulders top:
Does this mean that the markets are about to plunge straight down? No. But they do stand as massive warnings that anyone expecting another round of QE or some other huge monetary stimulus from the Central Banks may be in for a RUDE surprise.
With that in mind, this week’s action will go a long ways towards explaining where we’re heading from here. Start of the Year buying is over and holiday ebullience is fading fast.
If you’re looking for specific ideas to profit from this mess, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).
Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.
Good Investing!
Graham Summers
PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years, or how to stockpile food (where to get it, what to buy, and how to store it) our reports cover this information in great detail.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com
- advertisements -
Please be kind to people who would use your predictions as contrary indicator and change between inflation and deflation slower than you are currently doing so their trades will be profitable :-), just when people were getting used to your "inflation" song, you change it on them. Would very much love for you get bullish on stock market so that it can be safely shorted. Thanks
he meant that message for kramer.
http://covert.mypressonline.com
So your news letter can help me deal with deflation as well as the assured inflation you warned about three months ago? I really hope you pay Tyler a nicce wad of cash...
Hey Graham,
I thought you were so ill that you could not send out last week's newsletter to your PAYING subscribers yet you have time to post here fishing for new business. Guess I won't be renewing my subscription. Let me guess, you are a former Wall Street bank employee?
Summers is not a "doom and gloomer". He's being a realist. The market is all rigged. The real money is in gold and silver.
I believe you meant: "real money is gold and silver"
Go Graham.
The world hasnt ended yet but before it does keep trying to lure with your doom and gloom.
Whatever happened to the Mad Hedge Fund Turd?
He is still selling newsletters since making money in the markets is not working out for him. I stopped by his website out of sheer boredom the other day and he was advertising an upcoming speaking engagement in Beverly Hills.
Wonder if he (the mad hedge fund trader) still thinks rare earth companies are a good trade. Well, I'm short MCP and doing nicely. He is a great contrary indicator as well as a nice source of riducule, so we at ZH miss him slightly.
this is a good sign if your bearish.