Things Have Actually WORSENED Since the Feb Bounce Began

Phoenix Capital Research's picture

What a different four weeks makes.

Four weeks ago, the S&P 500 had just taken out critical support. Everyone was panicking that the market was about to implode.


1.     At that time, China was continuing to devalue the Yuan as its economy collapsed.


2.     Europe was tumbling based on Draghi’s inability to generate inflation.


3.     The US economy was rolling over sharply as deflation arose courtesy of US Dollar strength and a Fed rate hike.


Since that time, not one of those issues has been resolved. The only thing that has changed is that the S&P 500 has rallied 9%.

Indeed, if anything we are getting additional signs things are worsening outside of the stock market.

China’s economy is in a full-scale collapse. According to electricity consumption the country’s economic activity is NEGATIVE. Indeed, 28 out of 31 provinces had a NEGATIVE deflator for 2015. China as a whole is in recession if not outright deflation.

Europe just posted negative inflation. Mario Draghi has cut rates into NIRP three times and spent over €670 billion. This bought at best a year’s worth of uptick in inflation data.

And finally, the US continues to post worsening economic data. US services have slumped into contraction just as we predicted (manufacturing has been in a recession since mid-2015).

And the Fed is hiking rates?

Another crisis is coming. Nothing has changed since February 9th. Markets have rallied on hype and hope of more stimulus, but that will only go so far. The business cycle has turned. And credit is SCREAMING that something BIG is coming down the pike.

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:

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research




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leonjb's picture

"The only thing that has changed is that the S&P 500 has rallied 9%."  

yes just after you advised to buy the put SPY 192 for march i'm happy that i did follow that trade

Gallop.Goose's picture
Gallop.Goose (not verified) Mar 3, 2016 2:25 PM

I think its all those Chinese ebikes in regen mode, generating electricity to power their VR Golf on XBox

LawsofPhysics's picture

negative electricity consumption?  Bullshit!  Are all their cities dark?  Is everyone on treadmills producing current that is not being used? What a moronic fucking statement.

Abbie Normal's picture

When my solar panels generate more electricity than I consume in a month, and the utility company credits my bill, that's negative electricity consumption on my part.

the grateful unemployed's picture

according to electricity consumption ECONOMIC activity is negative. when you go to your job your carbon footprint gets a lot bigger

LawsofPhysics's picture

So this is simpl eCONomic mumbo jumbo?  Like I said, bullshit.

Shed Boy's picture

Yup, I call bullshit too. 'Economy in full-scale collapse." Is a giant load of horse shit written by some clown state side. I was in the big mall here in Harbin today and it was packed. Somebody better tell the Chinese that their economy has collapsed because the Apple store was doing a brisk business. The buses were full and the super market was crazy on a friday afternoon.

I really wish people would stop writting silly nonsense about what's happening here in China. I'm here and I ain't seein it. But I do see a ton of solar panels and solar water heaters on rooftops. So maybe there is something to be said for "going solar".

Ah....pheonix capital. No wonder.