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A Frightening Chart Indicate That There Is A 66% Chance That We Will Enter A Great Bear Market

October 24th, 2012

U.S. stocks are battling one of the most important trendlines in history

From Kimble Charting Solutions:

CLICK ON CHART TO ENLARGE

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At the same time the Dow is at the top of its channel, one can’t help but notice the potential that a rising wedge looks to be forming, that would suggest a two-thirds chances of lower prices on the Dow.

The Dow is in somewhat of a jam at (1) in the chart above, reflecting that something needs to give (breakout or breakdown) fairly soon!

 

The following are 28 warnings signs indicate that a massive stock market crash is rapidly approaching:

1. Profit Outlooks 90% Negative: Of the 20 companies in the S&P 500  that have provided guidance for the fourth quarter during the current earnings reporting season, 18 have slashed their forecasts, according to Goldman Sachs (GS).

2. The Real Unemployment Rate Is Closer To 19%: Include the eight million who have simply given up looking, and the real unemployment rate is closer to 19%.

3. CEOs Run Out of Costs To Cut And US Domestic Demand Is In Decline As Customers Are Increasingly Wary About Spending!!

4. U.S. government debt, which has exploded to $16 trillion, represents a threat to national security, experts say. Payments on Interest to Exceed Defense Spending by $125 Billion

5. Projects Start Getting Delayed And Now We Are Starting To See Earnings Miss

6. A “Frightening Pattern” Indicate That We Are Heading To A Massive Economic Catastrophe Unlike Anything Ever Seen And Countdown Clock Is Quickly Approaching Zero

7. The World Is Moving Closer To A Full-Blown Currency War Just Like The Great Depression of The 1930s.
8.  America’s near poor – 30 million and struggling
9. In the United States today, 77 percent of all Americans are living to paycheck to paycheck at least some of the time.
10. EUROPE Is Now In A Completely Unmanageable Situation While Economic Gloom in the Eurozone Spreads

11. U.S. Currency Is Rapidly Becoming Worthless: Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
12. One Of The Biggest U.S. Investment Banks Is On The Verge Of Collapse

13. Revenue streams are drying up as China’s growth slows & Europe reels from crisis to crisis. It’s looking so bad. This earnings season threatens to be one of the roughest since U.S. companies started to pull themselves out of the Great Recession — even if, as usual, results don’t live up to the worst of the gloom-and-doom forecasts.
17. “Global cyber attacks and cyber terrorism could be the next global shock.Computer systems are now everywhere, from mines to space stations,” he said at the 9th Yalta Annual Meeting on Friday.
24.  A Collective Collapse In Global Demand Is What Happened During The Great Depression. It’s Happening Again Today!!!



“We cannot track 2.3 TRILLION in transactions.”
~Donald Rumsfeld

Imminent stock market crash - Get READY – YouTube

 

Warnings From Financial Experts That A Massive Stock Market Crash Is Imminent

But without a doubt another major financial collapse similar to what happened back in 2008 (or even worse) is on the way.  Let’s take a look at some of the financial experts that are predicting really bad things for our financial markets in the months ahead….

Doug Short

According to Doug Short, the vice president of research at Advisor Perspectives, the stock market is somewhere between 33% and 51% overvalued at this point.  In a recent article he offered the following evidence to support his position….

? The Crestmont Research P/E Ratio (more)

? The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more)

? The Q Ratio, which is the total price of the market divided by its replacement cost (more)

? The relationship of the S&P Composite price to a regression trendline (more)

Peter Schiff

Peter Schiff, the CEO of Euro Pacific Capital, has been one of the leading voices in the financial community warning people about the crisis that is coming.

During a recent interview with Fox Business, Schiff stated that the massive financial collapse that we witnessed back in 2008 “wasn’t the real crash” and he boldly declared that the “real crash is coming”.

So is Schiff right?

We shall see.

Robert Wiedemer

Economist Robert Wiedemer warned people what was coming before the crash of 2008, and now he is warning that what is coming next is going to be even worse….

“The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”

Harry Dent

Financial author Harry Dent believes that the stock market could fall by as much as 60 percent in the coming months.  He is convinced that stocks are hugely overvalued right now….

“We have the greatest debt bubble in history. We will see a worldwide downturn. And when you are in this type of recessionary environment stocks should be trading at five to seven times earnings.”

So are these guys right?

We shall see.

But I do find it interesting that some of the biggest names in the financial world are currently making moves as if they also believe that a massive financial crisis is coming.

For example, as I have written about previously, George Soros has dumped all of his holdings in banking giants JP Morgan, Citigroup and Goldman Sachs.

Infamous billionaire hedge fund manager John Paulson, the man who made somewhere around 20 billion dollarsbetting against the U.S. housing market during the last financial crisis, is making massive bets against the euro right now.

So where are these financial titans putting their money?

According to the Telegraph, both of these men are pouring enormous amounts of money into gold….

There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF).

Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.

At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.

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October 24th, 2012 |