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This is a MAJOR Warning Signal That the Bubble Just Burst
Throughout the last 5 years, the financial markets have moved with high yield bonds (also called Junk Bonds) leading stocks. This makes sense: as the financial system began recovering from the 2008 Crash, money began flowing back into riskier and riskier assets.
You can see this below, with High Yield Bonds outperforming stocks, leading them higher from 2009-2014. With interest rates at 0%, investors were hungry for yield. Stocks only offered 2-3%, so this lead investors into Junk Bonds which typically yield 7% or even more.
Then something happened. Junk Bonds began to collapse… in a BIG WAY.
Indeed, Junk Bonds have been flashing a MAJOR warning signal that something BAD is coming. But stocks have ignored it for all of 2014.
Indeed, if you look at what happened during the October 2014 correction, you see that High Yield Bonds did NOT buy into the bounce AT ALL!
This is a MAJOR warning signal that the great “recovery” in risk assets was ending. The Fed spent over $4 trillion and managed to create another stock market bubble, but that bubble is ending.
If you’ve yet to take action to prepare for the second round of the financial crisis, 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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The Fed has only one purpose, destroy the Dollar and create an economic collapse America hasn't seen before.
Everyone will be desperate and the government can make it's move to become even more dominant then it is today and realize communism.
But martial law is also coming after a second sort of 911 event. This is all planned.
911 had only one goal, change the NDAA so that when it happens again any white man can be picked of the street and put in a camp. You still didn't figure our the ultimate goal of all this is the extermination of the white race? Wow.....
Do some reserach. Typ in youtube 'Putin first communist government 80% Jews' and get it from the horese's mouth. Then study who was behind Mao, yes the same people.
And before everyone starts shouting antisemite, it's about the Jewish ZIONISTS not about the Jews, they don't have a clue either. Theodor Herzl said 'I have an excellent plan' before WWII to get innocent Jews to Israel.... fool the common Jew, fool the white race and after a period of a few hundred years only one will be left... We're close to the most important Jewish year 5776, no coincidence.
You've been tricked for a long time, that we are targeted, the white race, should be obvious to anyone who is honest.
I would like to know how anyone could think the system can continue. Does it not require more participants as time marches on? I am 56 and cannot afford any more downturns. I am out. I have seen 3 events wipe out gains and cannot take a chance. Let's say this next crash- and it's coming or the budget bill would not have saddled us with the $303 trillion in derivatives- sees many more boomers take what little is left of their portfolios and fllee. Who will replace us? A bunch of under employed, part time workers, saddled with student loans? Markets should reflect future conditions not today's Central Bank manipulations. The fact the market is riding so high with so little promise for the future is an indication it has moved from investment to speculation. Soaring market credit is another ominous sign along with lagging business investment. Throw in the growing inequality trend and the climate is reminiscent of 1929. If you want to stay in the market it is your choice just as it is mine to leave. Sure I might miss a gain but I might avoid an even bigger loss. Sanity is a precious commodity and being free from the market I feel rich.
I hope all your gains are sitting in a bank account, or FRNs stuffed in your matress ...
Protocol of Zion 'get the debt so high that even the interest is impossible to pay'. What else do you need to know? Maybe the whole set of Protocols, you can look that up on the Internet. Thanks to the Jew Aaron Swarts who gave his life for freedom and thought Internet censorship succesfully.
Censorship that was meant to keep from you how the world is controlled by the Zionist Jews. Michael Chertoff before Aaron Swarts was murdered 'we should forbid that anyone can say the government had anything to do with 911 just like we should forbid anyone to say the holocaust wasn's real'. Now you know the truth about both events.
If faith in the system begins to falter watch out because we might stumble into the little understood contraption known as a liquidity trap. Consider the following possibility based on people and institutions beginning to doubt the current system will work for much longer. It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward. When this happens we are at the end game.
At some point the return on loaning money is simply not worth the risk! Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants.
The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. Credit is the lubricant of commerce. After a major reset real money and real positive rates will return as economics demand. More on this subject below.
http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit-can.html
I thought the problem was solvency, not liquidity.
May be the lonely voice in the crowd, but don’t think the Fed could pull off further QE. There is now a huge backlash building as to the massive income and wealth inequality QE created. Up until now, QE was considered the only thing preventing a total collapse and the ‘minor’ downside of enormous inequality generation was an okay price to pay. But now the masses see they are no better off; only the top 10% are laughing all the way to the bank. True, the oligarchs own the banks and the congress, but they don’t want dangerous social unrest. If the markets continue to tank and return to their true values, maybe 50% less, the Fed will of course be forced to act. If jawboning fails, it may use direct asset purchases instead of moar QE. The BOJ now publically does this, and there is no big uproar.
They appear to have reached a point where it is lose-lose for the Fed. The markets are 100% dependent upon Fed intervention, but the wealth flows to the few and ‘trickle-down’ never happened. Loose credit has enabled the fools to live beyond their means. It cannot last. Gonna get ugly…when? Uncertain. But if the oligarchs feel desperate they WILL provoke a war, and one with Russia will be uglier than even those greedy bastards can imagine
Every time there is a 1% correction, the Bubble has burst.
When the market goes 2%, "the smart money is selling". yamn...
who does still believe in this absolute BS...
when the market was at 666 he was still bear, at 700, an opportunity to sell, 750 as well, 800 etc....Fortunately for him, he doesnt follow his own advice else hes writing his blog from a net cafe, and sleeps in McDonalds
The MAJOR warning signal the Bubble has burst is when ZH and Phoenix has no more readers and all the perma bears will have capitulated and gone long
Graham Summers is hiding his name and face now. What an idiot, what a mediocre crook. He's not even a Madoff
The Bubble for Phoenix Capital idiot Readers seems to be very resilient
And...it's gone!
https://www.youtube.com/watch?v=-DT7bX-B1Mg
And that's nothing but plain, old-fashioned communism.
As most Americans, you are clueless as to what communism is.
Old Janet Yeller would make an excellent crash test dummy.
We're about to find out.
And the Fed yellen comes out Wendsday and says its party tme Merry Christmas Wallstreet here is QE 5,6,7 etc all in one. Now really what keeps that from happening? I can see it
HYG didn't buy the October Bullard bounce as indicated. Not sure at this point the market's going to buy three more rounds of QE as they did the first three. The cat's out of the bag as far as the lie that QE makes risk assets more valuable in the long term. We are now at or past the long term at this point.
As simplifications go, this is probably a very useful one.
Risky Business.
Coming to bankers and brokers next week.
those graphs make me horny
none of those graphs
could catch a seal....
Shazam!
Ohh No! My name again!
/s
"Since 2009 stocks only gained 2-3% per year" ????
Is this the kind of information I can expect from the newsletter ??
2-3% YIELDS. Get it? Probably not LOL.
Stateside.