Category: Financial Crash
The analysis published under this category are as follows.Thursday, February 06, 2014
Stocks Peak One Year After Bonds, History Set to Repeat? / Stock-Markets / Financial Crash
Financial parallels between the 1920s and todayWhen the financial media mentions the late 1920s, they usually
mean the 1929 stock market top. But today's investors can
also learn from what happened in 1928. That
was the year that the bond market topped, while commodities
peaked even sooner.
Sunday, January 26, 2014
Robert Prechter's The Next Big Drop Stock Market Warning / Stock-Markets / Financial Crash
On January 24, the DJIA, S&P and NASDAQ all lost close to two percent. On a day like that, it's worth talking about the one indicator they don't often mention on financial networks - namely, market sentiment.
When is the best time to get out of the stock market? When everyone else is invested and extremely optimistic. When is the best time to buy, then? Exactly: when you see the opposite sentiment.
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Sunday, January 26, 2014
Stock Market Crash - Dow Crashes 450 in 2 Days / Stock-Markets / Financial Crash
Anyone reading that headline would think it's some sort of surprise to most traders that the markets crashed 450 points in 2 days, but for us a wavepatterntraders.com we have been looking for a reversal in the markets for a few weeks and it was only a matter of time before things reversed. So it's no surprise to us, it was expected and I expect much more if a top is in place.
Is this the start of the large move lower that I am expecting? Well to answer that question honestly, it's too early to say, but regardless of the answer, what we can say for sure is that if it is the start of something sinister, we will be riding it lower.
Tuesday, December 24, 2013
Stock Market Crash Postponed, But Not Cancelled / Stock-Markets / Financial Crash
We’re dealing with a major ice storm here in mid-Michigan. We have a half inch of ice on everything, stripping branches from trees and bringing down powerlines and the weather is turning colder. Major swaths of the state are without electricity, much less phones & internet. I had to drain several peoples’ water pipes because with no heat, they will freeze. We are fortunate to have power, but many may not have electricity back on until after Christmas.
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Sunday, November 24, 2013
The QE Experiment is Failing… Will Stock Market Crash? / Stock-Markets / Financial Crash
We’ve long maintained that Japan is ground zero for the “QE works vs QE doesn’t work” debate.
The Fed’s economic models, and 99% of the economic models employed by Central Banks in general, believe that monetary easing can bring about an economic recovery. The primary argument for this crowd if QE has thus far failed to produce a recovery is that the QE efforts have not been big enough.
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Thursday, November 14, 2013
Deflation, A Stock Market Crash And Then Christmas / Stock-Markets / Financial Crash
Don't get me wrong, I'm not saying things will happen in this order and timeframe. Just that they're going to if central banks and treasury departments don't up the ante. But they will. The question becomes more important now whether it'll be enough to continue keeping their - presumed - demons at bay. They can't go on forever. You can inflate asset price bubbles only so much. And then people will lose faith. So the order and timeframe is definitely an option.
Deflation is already here. Everyone's talking about lower inflation numbers than expected everywhere, but prices have been pushed up artificially in so many ways and in so many places that, even given the fact that they all ignore what inflation really is, it's getting profoundly absurd. Ironically, a few interesting lines this week came from an unexpected corner, the Telegraph editorial staff:
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Sunday, October 27, 2013
Repo, Baby, Repo: How Unregulated Banking Triggered Financial Crash / Stock-Markets / Financial Crash
“Repo has a flaw: It is vulnerable to panic, that is, ‘depositors’ may ‘withdraw’ their money at any time, forcing the system into massive deleveraging. We saw this over and over again with demand deposits in all of U.S. history prior to deposit insurance. This problem has not been addressed by the Dodd-Frank legislation. So, it could happen again.”–Gary B. Gorton, Professor of Management and Finance, Yale School of Management (lifted from Repowatch)
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Tuesday, October 22, 2013
Keeping an Eye on the Dow, Stock Market Crash Fractal in Place / Stock-Markets / Financial Crash
SPX made a final probe to its upper trendline at 1751.78 this morning. From there it drifted down very slightly on low volume. Not a very impressive day for either side of the aisle, especially when considering today was one of the larger POMO days in October.
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Monday, October 21, 2013
The Risks of a Stock Market Deflationary Crash / Stock-Markets / Financial Crash
Dear Investor,
So many financial markets; so little time to follow them. The one forecaster I know who will put it all in perspective is EWI's Robert Prechter. Read his reports and you will get a clear idea of what really drives the markets and the U.S. economy – and why the Fed is beating its head against the wall.
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Saturday, October 12, 2013
Stock Market Deflationary Crash Mounting Risks / Stock-Markets / Financial Crash
Dear Investor,
So many financial markets; so little time to follow them. The one forecaster I know who will put it all in perspective is EWI's Robert Prechter. Read his reports and you will get a clear idea of what really drives the markets and the U.S. economy – and why the Fed is beating its head against the wall.
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Wednesday, September 25, 2013
The Smell of Financial and Economic Collapse is in the Air / Stock-Markets / Financial Crash
This is a continuation from part 1 - read it here.
CAUTION! Before you continue...
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If you believe that total government debt can grow FOREVER and more rapidly than the underlying economy, this article is NOT for you.
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If you believe that governmental deficit spending, QE, and bond monetization can continue FOREVER without major consequences, this article is NOT for you.
Thursday, September 19, 2013
The Smell of Financial Collapse is in the Air / Stock-Markets / Financial Crash
The U.S. stock market is near all-time highs, while politicians and economists are blathering about recovery, low inflation, and good times, but instability and danger are clearly visible in our debt based monetary system. To the extent we rely upon the fantasies of ever-increasing debt, money printing, and credit bubbles, we are vulnerable to financial collapses. Perhaps a collapse is not imminent, but it would be foolish to ignore the possibility. Consider what these insightful writers have to say:
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Wednesday, September 18, 2013
Steps to Take When the Stock Market is Ready to Crash / Stock-Markets / Financial Crash
Marc Lichtenfeld writes: It is Wall Street legend that in 1979, BusinessWeek informed readers of “The Death of Equities” right before the biggest run-up in stock prices in history.
Since then, many other magazine covers have served as a contrarian signal for where the markets are headed. That’s led to a theory among some investors that the market is about to do the opposite of whatever mainstream magazine covers suggest.
Monday, September 16, 2013
Commemorating Financial Panic: It Ain’t Over Yet! / Stock-Markets / Financial Crash
New York, New York: Media outlets love anniversaries. They become the makers and news-pegs for one-day stories that become pretexts for episodic coverage of key issues that substitute for ongoing critical reporting,
It’s a form of nostalgic ‘how are we doing coverage ‘ that aims to depoliticize the past or give us a grade, but not look too closely at the causes of the crisis.
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Friday, September 13, 2013
Ben Bernanke Financial Crisis Hero / Stock-Markets / Financial Crash
Former Treasury Secretary, Hank Paulson joined Bloomberg Television’s Tom Keene today on “Street Smart.”
On being Treasury Secretary for two years, six months, and ten days:
“It went quickly, but I hit the ground running. I had fortunately, a year before the crisis to build relationships of trust with the President and that relationship was clearly critical.”
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Sunday, August 25, 2013
The Coming Stock Market Crash / Stock-Markets / Financial Crash
One mistake most investors made when building their portfolio is using the bottom-up approach where they tend to concentrate on stock picking without paying attention to the overall market. When you apply the bottom-up approach you tend to ‘not see the forest for the trees’ because you are focusing on the ‘micro side’ of the market. Or put it another way, you concentrate on the companies but miss out on the overall market.
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Saturday, August 24, 2013
Financial and Economic Meltdown Coming?! / Stock-Markets / Financial Crash
“Our estimates of prospective risk are surging…
“At present, we have what might best be characterized as a broken speculative peak, in that market internals (particularly interest-sensitive groups), breadth and leadership have broken down uniformly following an extreme overvalued, overbought, overbullish syndrome.
“If you recall, the market also recovered to new highs in October 2007, weeks after the initial, decisive break in market internals at that time. Presently, we’re looking at the same set of circumstances. On some event related to tapering or the Fed Chair nomination, we may even see another push higher. It isn't simply short-term risk, but deep cyclical risk that is of concern.”
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Friday, August 23, 2013
Economic Napalm - Stock Market and Economic Crash to Begin Now! / Stock-Markets / Financial Crash
The smell of economic NAPALM is in the air as the central bank printing presses have allowed mispricing, malinvestments and market imbalances to mushroom to EXPLOSIVE levels. Now the money printing is set to slow and some of the insolvent can be expected to fall to their doom as the tide of money recedes.
This has set the stage for a BLACK swan of unknown identity to set off the conflagration. The Black swans are too numerous to mention but we are going to identify a few of them in this edition of fingers of instability.
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Friday, August 16, 2013
The Only Market Crash Talk Worth Trading / Stock-Markets / Financial Crash
Keith Fitz-Gerald writes: You've no doubt heard the "crash talk" intensifying after two triple-digit down days. But after reviewing more than 100 commentaries, there are exactly two and a half I take seriously.
The one we'll start with can not only help you now - as in today. It can also give you a permanent edge, because most people will never know how it works.
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Tuesday, August 13, 2013
Stock Market Crash - Smart Money Is Leaving the Building / Stock-Markets / Financial Crash
Japan continues to dominate the economic news. The latest move concerns Prime Minister Abe’s new economic policies to cut corporate taxes. He also announced plans to run a shakeup at Japan’s political ministries.
This is “Plan B” for Abe who has found that his policy of “Abenomics” or pushing the Bank of Japan to print even more money has failed to stimulate Japan’s economy.
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