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A Pandemonium of Bells Are Ringing For the Markets

Phoenix Capital Research's picture




 

There is a saying that you don’t ring bells at the top.

 

It’s not really true. Every time the market forms a major peak, at least in the last 15 years, there are usually a preponderance of signs of excessive speculation and leverage.

 

Today we are seeing bells ringing throughout the markets.

 

For instance, today, we have:

 

1)   Corporate debt is at 2007 peak levels.

2)   Investor bullishness is at extremes not seen since the 2007 top.

3)   Margin debt (money borrowed to buy stocks) is closing in on its record high.

4)   Over 70% of household net worth is based in financial assets. As ZH has noted previously, every time this has happened historically, asset prices have crashed soon after.

5)   The Bank of International Settlements and the IMF have both warned of excessive risk taking and market fragility.

6)   Market volume is at an absolute trickle, with most volume coming from HFT firms.

 

Aside from this, we have countless examples of the “smart money” preparing:

 

1)   Billionaires are sitting on record amounts of cash.

2)   Warren Buffett is sitting on over $50 billion in cash.

3)   George Soros has taken out a record put position to profit from a market collapse.

4)   Carl Icahn has warned of a “big drop” coming in stocks.

5)   Jeremy Grantham has commented that we are in a “fully-fledged equity bubble.”

6)   Corporate insiders are selling stock at a pace not seen since 2000.

7)   Financial institutions as well as hedge funds have been net sellers of stocks since 2014 began.

 

There are literally bells everywhere today. Does this mean that the market will take a nosedive this week? Not necessarily. Tops can take much longer to form that anyone expects.

 

However, there are clear signs of excessive speculation, leverage, and the like. And the smart money is heading for the exits.

 

Are you?

 

Don’t let the second round of the financial crisis crush your portfolio… we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

Best Regards

Phoenix Capital Research

 

 

 

 

 

 

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Fri, 11/28/2014 - 03:45 | 5495881 Kevin
Kevin's picture

This clown hasn't realized, that for the last 6 years, he's had chronic tinnitus

Fri, 11/28/2014 - 00:20 | 5495690 MGA_1
MGA_1's picture

I think when phoenix finally throws in the towel and goes bullish, we'll know we're at the top.

Fri, 11/28/2014 - 00:51 | 5495725 Chat_noir
Chat_noir's picture

Phoenix is an NSA bot. No human can be that stupid. theyve been bearish since 800 on the SP... if they were human they woudnt have enough money to buy a PC and post those insanities

Thu, 11/27/2014 - 21:32 | 5495399 0b1knob
0b1knob's picture

Actually a series or group of bells are referred to as a PEAL of bells.

Pandemonium refers to a group of parrots.

Thu, 11/27/2014 - 20:43 | 5495304 fibonacci's claus
fibonacci's claus's picture

ding ding a ding

ding ding a ding

dinga dinga dinga dinga

dinga dinga dinga dinga

ding ding a ding............

DONG !

 

Thu, 11/27/2014 - 18:40 | 5495092 stacking12321
stacking12321's picture

"There are literally bells everywhere today."

you don't know what the word "literally" means, do you?

 

Thu, 11/27/2014 - 21:42 | 5495418 Midnight Rider
Midnight Rider's picture
I think if you look at the synonums for literally, he probably does know what it means. in a literal manner or sense; exactly. "the driver took it literally when asked to go straight across the traffic circle" synonyms: exactly, precisely, actually, really, truly
Sat, 11/29/2014 - 22:18 | 5500362 stacking12321
stacking12321's picture

if there were literally bells everywhere, the universe would be comprised of bells, and there would be nothing else in the universe.

 

Thu, 11/27/2014 - 18:39 | 5495091 Kreditanstalt
Kreditanstalt's picture

Useless.  Central banks are buying stocks.

Thu, 11/27/2014 - 21:38 | 5495410 Midnight Rider
Midnight Rider's picture

This is a very interesting story line that you hear a lot, and very troubling one at the same time. Loading up with direct buying of stocks at the peak of every measure of market valuation top in history seems like a massively risky thing for even central banks to do. Stocks must continue to rise from that already massively overvalued position in order to be productive. They certainly aren't being reflected on the Fed's balance sheet publicly, however we know the Japanese are buying some stuff. Also a risky bad idea for an extended period. And if the market turns? We know the Fed has a big checkbook. But, come on. Can they really buy all the equities from thos who will want to sell them in the future? Not realistic in my view, but who said the Fed is realistic. They certainly haven't been up to now. Maybe I give them too much credit for staying away from this kind of beyond QE craziness.

Thu, 11/27/2014 - 18:36 | 5495089 AdvancingTime
AdvancingTime's picture

 In addition to manipulation by the government-financial complex other forces are converging to further distort and disconnect Wall Street from the American economy. Why American equities continue to rise is very important, more is at force here than the usual causes which might include a pre-election and post-election rally. This is more than the continuation of a double down and let it ride mentality that has been ratcheting the market higher while reenforced by media hype.

Most analysts agree that money from countries with weakening currencies is flowing out of the troubled areas and the U.S. is receiving most of the benefit. The Japanese as well as many Chinese and Europeans know with so much money floating around and few safe harbors America is becoming the most comfortable option for temporary investing their money. More on why this should be viewed as a sign of massive instability rather than a reason to celebrate in the article below. Thing could turn ugly very fast.

http://brucewilds.blogspot.com/2014/11/why-american-equities-are-rising.html

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