Two Charts That Signal a Major Warning For 2018

Phoenix Capital Research's picture

Inflation is going to annihilate the stock market.

The reason, in fact the BIG reason, that stocks have been soaring since November 2016 is because of the coming inflationary storm. Stocks LOVE inflation at first as it results in asset prices rising.

However, stocks absolutely HATE inflation once it starts eating into profit margins. When this happens, companies begin to lose money as higher operating costs eat into their profits.

On that note, take a look at the following chart of corporate profits pre-tax.

What you are looking at, is an “end of cycle” situation in which corporate profits begin to roll over in a bit way.

Why are corporate profits rolling over?

Profit margins are shrinking as inflation begins eating away at profits. And this is just the beginning.

What happens when inflation REALLY starts to bite into stocks?

Put simply, BIG INFLATION is the THE BIG MONEY trend today. And smart investors will use it to generate literal fortunes.

We just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay ou as it rips through the financial system in the months ahead

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

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aliens is here's picture

The doom doesn't happen this year but watch out it'll be next year talk is getting old. Just come out and say buy gold, silver or bitcoin and save all the rubbish doom talk.

autofixer's picture

No doubt there will be a reversion to the mean, sometime.

44_shooter's picture

Tomorrow, tomorrow, tomorrow, tomorrow, tomorrow, tomorrow, tomorrow....

tangent's picture

The market will be sharply down this fall & winter. SELL.

But suggesting it will crash to lower than 2008 lows is outragously wrong.

The Real Tony's picture

The stock market is still in a long term bear market with lower lows to follow.

jeff montanye's picture

but it will.  the market will take back all of the gains of qe and more so that the whole shebang averages single digits over the long haul.  no free lunch and all that.  lost 85% in the thirties and the seventies, inflation adjusted.  the rocket ship since '82 will also lose that from the top.  inflation adjusted.

truly time to sell spx and tech and buy precious metals miners.  and, in retrospect, that trade will look good going back to 2013 or so sooner than later.

Osmium's picture

Uhh, hate to break it to ya, but just drawing a red sloping line with an arrow does not mean shit!  Been hearing about this crash for a long fkn time now.  CB's are not going to let it happen.

Fahq Yuhaad's picture

Evidently the world is still full of suckers who are impressed by the predictive power of technical analysis.

Personally, I use my own proprietary oscillator and wear Bollinger Bands while performing the computations.

Lets Buy The Dip's picture

I agree, so many peope been calling a crash. You are better to do research and find a company that is accurate. I follow the aussie guy here, ==> SENTIMENT TRADER  .... he called the the 2008 stock market crash [3 months] before it happend!! ANd right now he is saying lots of things, but nothing about a STOCK MARKET crash. SO I doubt it would happen. 

too much hype out there. Lots of people saying the market would crash this year, and look at us. :-) 

The market can remain irrational a lot longer than traders can remain solvent in terms of money. Remember that. 

The Real Tony's picture

Edgar Cayce said the stock market will get obliterated in 2018. See youtube.

Fahq Yuhaad's picture

"he called the the 2008 stock market crash [3 months] before it happend!!"

Funny how pundits with a perfect record fail dismally as soon as you start acting on their recommendations.

NickPeeMe's picture

Probably the same two charts that signaled the end in 2011 thru 2017. 

Secret Weapon's picture

WTF!!! I thought it was 2017?

SurlysonofaBitch's picture

So . . . now it's 2018 that is going to be the year of the crash. SMH.

Hongcha's picture

2009

2010

2011

2012

2013

2014

2015

2016

2017 ...

 

The Real Tony's picture

The funny thing is the latest the stock market should have crashed was 2010 after the dead cat bounce in 2009. I still think we will retest the 1987 levels next year after a 90 percent drop in stock prices and values.

Iconoclast421's picture

Or this could happen:

 

https://s1.postimg.org/4goosoimi7/GPC1018172.png

 

Yes thats a top in 2023 and a bottom in 2028! At any rate, 1600 is more likely to be a bottom than down there at 700.

tangent's picture

2028 is a good bottom... maybe 2029 though.

jeff montanye's picture

when zerohedge is bullish on stocks and hates gold . . . .

LawsofPhysics's picture

Someday, after his great, great, great grandchildren are dead and buried, Graham will be correct.

The Real Tony's picture

I told my great granchildren when they're my age they just be seeing the DOW come back to the 20,000 level.