4 Charts Show Why This Rally Will Become a Rout! – Economy & Markets 09-02-15

Salient to Investors:

Harry Dent writes:

  • The first wave down in a bubble tends to happen in a few months or less. Every major bubble back to the tulip bubble in 1637 did not correct in nice stair steps to a drop of 50% to 90%. We are in the “crash season” of mid-August to mid-October, so the worst decline will come in the next several weeks.
  • The 1929, 1987, 2000, and China 2015 bubbles were only obvious to a few.
  • Stocks have begun to crash, as indicated by the tops in the Transports in November, 2014, the Utilities in January, 2015, the DAX and FTSE in April, 2015, the Dow and S&P 500 in May, 2015, the Shanghai in June, 2015, and the Nasdaq in July 2015.

Read the full article at http://economyandmarkets.com/markets/cycles/4-charts-show-why-this-rally-will-become-a-rout/

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Urgent Warning: 6 Signs the Great Crash Is Upon Us! – David Stockman’s Contra Corner -7-16-15

Salient to Investors:

Harry Dent writes:

  • All the signs point to the end of the global bubble. The greatest trigger will be the bursting of the massive, unprecedented China bubble. China’s stock market loss of 35% in less than 30 days signals its stock bubble has peaked: a drop of 30% to 40% in short order is a clear sign of the first wave down in a major bust and the greatest sign that the next great global crash is imminent.
  • China’s stock market will bounce in the coming weeks and then crash again, with real estate and its economy to follow.
  • The Greek default proves that endless quantitative easing idiocy has proved unable to create sustainable long-term recoveries in highly indebted developed countries with poor demographic trends. Greece did the wrong thing by again kicking the can a little further down the road.
  • US stocks could be the last major market to make a new high before rolling over.
  • Oil prices will fall, killing the fracking industry, a $1 trillion investment with $600 billion of junk bonds and leveraged loans – much larger than Greece.
  • Emerging markets have led the global slowdown and are about to break to the downside out of a 4-month trading range.
  • Long-term rates for sovereign and Treasury bonds are rising despite governments stimulating and guaranteeing their economies. Rising long-term, risk-free rates hurt stock valuations and real estate even harder due to higher mortgage costs.
  • Gold will continue to fall but will have a minor bounce.

Read the full article at http://davidstockmanscontracorner.com/urgent-warning-6-signs-the-great-crash-is-upon-us/?utm_source=wysija&utm_medium=email&utm_campaign=Mailing+List+Mid+Day+Friday

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