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The Great Reflation Is Ending...Stocks Will Crash Just As They Did in 2001 and 2008
Earlier this year, we posited that the markets were reaching the point at which a significant percentage of investors no longer had faith in Central Banks’ abilities to put off the business cycle.
This now appears to be the case. In the last month, three Central Banks have announced policy changes. All three of these changes were alleged to be bullish in nature.
They were:
1) The European Central Bank (ECB) cutting rates further into NIRP and extending its QE program through March 2017.
2) The US Federal Reserve hiking interest rates from 0.25% to 0.5%.
3) The Bank of Japan (BoJ) boosting its ETF purchase program to $2.5 billion per year.
Following ALL THREE of these developments, the respective stock markets sold off.
First off, on December 3rd, the ECB announced it was cutting its deposit rate further into NIRP from -0.2% to -0.3%. It also announced that it would be extending its QE program through March 2017.
European stocks crumbled on the news, resulting in ECB President Mario Draghi having to make a desperate verbal intervention that the ECB would do more if needed the very next day. But even that failed to stop stocks from collapsing soon after.

Next up was the US Federal Reserve.
In the build up to the Fed’s December rate hike, we were told repeatedly that this was a bullish development because it signified that the US economy was strong. Time and again, the financial media and Fed claimed that the rate hike would drive stocks even higher.
Then the Fed raised from 0.25% to 0.5%. The very next day stocks collapsed. They’ve continued to fall since.

Finally, last Friday the Bank of Japan announced that it would be boosting its ETF buying program by ~$2.5 billion per year. Again, this was meant to be a bullish development as it indicated the BoJ was willing to do more to prop up the markets.
The Nikkei bounced briefly on the news before selling off hard. Even the usual Monday boost failed to ignite a significant rally in Japanese stocks.

Thus, we have THREE Central Banks, all implementing policies that they claimed were bullish. ALL THREE OF THEIR STOCK MARKETS FELL SOON AFTERWARDS.
This is a clear sign that Central Banks’ promises and policies are no longer having the same effect they once had. Given that Central Banks have been the primary drivers of stock markets since the 2009 bottom, this strongly suggests that the Great Reflation efforts of the Central Banks are ending.
If this is the case, then it’s only a matter of time before stocks collapse. Every bubble of the last 15 years has resulted in a market crash. This time will be no different.
Smart investors are preparing now.
We just published a 21-page investment report titled Stock Market Crash Survival Guide.
In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.
We are giving away just 1,000 copies for FREE to the public.
To pick up yours, swing by:
https://www.phoenixcapitalmarketing.com/stockmarketcrash.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
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You need to see all central bankers colluding together as one not 3 individual central banks. They use the QE rape train passing the policy from country to country, or going into a recession whilst another nation prospers before switching it again.
So ...
Three central bankers jumping out at 10'000 feet no parachute. They cheer each other on as they pass each other, the one just passed thinks they are doing better and ignores the rapidly approaching ground judgement day.
You can just hear Mr dollar bragging how good he is to Mr Euro ... but it is not going to make the ground go away.
SPLAT!
We have too much of everything, cheap money over many years has resulted in massive over production of almost everything,massive misallocation of resources a bit like when you realize you have drunk way way too much and the hangover is inevitable.
We had no real estate crash in western europe in 2008, maybe next year because it looks like real estate supply is piling up.
Stocks go boom boom and bring the doom doom.
There is a correlation between what's happening in the markets with the Fed and how a drug addict acts over time. If left untreated and continually enabled to continue the addiction - the highs take more and more drugs to get less and less satisfaction until you overdose or your bodily organs just shut down - death is ultimate result. Get my point?
Let it CRASH! Not too long ago, bunches of the "buy the freakin dippers", were all over this site...I guess they found a new site.
not a peep, for some time
Lol if it was a party full of people screaming BTFD, the party would be over and there would be one drunk guy on the floor covered in vomit alone chanting BTFD.
Party is over, clean up crew OTW.
Bummer Phoenix predicted this? Looks like we will have a long slow decline or even a sideways trade for years....too bad
Tribe wealth extraction 3.0.