Did Central Banks Just Pull the Plug On Another Credit Bubble?
Stock-Markets / Liquidity Bubble Jun 23, 2017 - 06:37 AM GMTBy: Graham_Summers
Last week the NY Fed downgraded its economic forecast for 2Q17 to just 1.9%. Even worse, it is now forecasting 2017 total growth to be a measly 1.5%.
Yes, 1.5%.
There is a clear trend to this chart… and it’s NOT up.
Source: NY Fed
Wait, it gets worse.
The Citi Surprise Index has collapsed to levels not seen since 2011.
Source: Yardeni Research
The last time this index was at these levels, the Fed was about to launch Operation Twist to provide additional liquidity to the markets.
Today, the Fed is about to start WITHDRAWING liquidity from the markets. And not a little: $10 billion per month this quarter, and $20 billion per month in 4Q17.
What’s the deal here?
The Fed is “taking away the punchbowl” from the markets. Sure, stocks might hold up relatively well today or tomorrow, but the reality is that the $14 trillion market rig of the last seven years is ending. Globally Central Banks are going to begin withdrawing stimulus from the system, as global credit is already decelerating at a pace not seen since the Great Crisis.
A Crash is coming.
A Crash is coming.
And smart investors will use it to make literal fortunes from it.
We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It’s called Stock Market Crash Survival Guide.
We made 1,000 copies to the general public.
As I write this, only 87 are left.
To pick up one of the last remaining copies…
Graham Summers
Phoenix Capital Research
http://www.phoenixcapitalmarketing.com
Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.
Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.
© 2017 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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