Conditions are similar to 2007, prior to the stock market crash, worries about the economy mount, rate cuts will not save it, plus big picture for gold remains bullish and silver may join the party.
Worries About Economy Mount
July 8 (King World News) – Mike Larson, Senior Analyst at Weiss Ratings: “Catching up on a lot of post-holiday work. But quickly wanted to share updated New York Fed recession probability chart from Fri. Up to 32.9%, a fresh cycle high (last reading 29.6%). Commence argument that it doesn’t matter because SPX flirting with new highs in 3, 2, 1 … (See chart below).
WARNING: Recession Predictor Ramping Up
Rate Cuts Will Not Save It
Mike Larson, Senior Analyst at Weiss Ratings, continues: “The Fed started cutting well before the 1990 recession…& it didn’t head it off. The Fed also started cutting sooner to the onset of both the early-2000 & late-2000 recessions. That also failed to head them off (in latter 2 cases, SPX also plunged 50% & 57% respectively). White line in this chart is the federal funds target rate, green line is S&P 500, red bars are periods of recession just FYI … (See chart below).
Fed Rate Cuts Have Led To Disastrous Stock Market Returns
Conditions Similar To 2007, Prior To Crash
Sven Henrich: “S&P 500 use of cash for investing for growth lowest percentage since 2007, a time when over 30% of cash was used for buybacks, similar to now. (See chart below).
Conditions Very Similar To 2007, Prior To Market Crash
Lagarde And Market Alarms
Jeff Snider at Alhambra Partners: “In Nov ’08 Lagarde said they would put in place system which “will ring the bell when a threat to the system emerges.” They didn’t need to since there’s been mkt alarms for 12 years; people like Lagarde simply ignored them. Just like she did last year. (See chart below).
Lagarde Has Always Ignored Market Alarms
Lagarde’s Track Record Troublesome
Jeff Snider at Alhambra Partners: “Mario Draghi’s retirement had presented an opportunity, especially for someone who isn’t an Economist to figure things out. Instead, ECB nominates Christine Lagarde. Though she isn’t an Economist, she’s proven no different. (See chart below).
Lagarde Has Proven No Different
BONUS INTERVIEW:
To listen to Doug Casey’s just-released KWN interview discussing his prediction of financial and economic chaos and a panic into gold CLICK HERE OR BELOW:
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Silver Breakout Coming
Stefano Bottaioli, Italian analyst: “Silver: a large pattern under construction which looks like a bullish Head and Shoulders and which is completing the right shoulder with a correction in 3 waves (Up, Down & Up) mirrored to the left … Beyond (See chart below).
BREAKOUT COMING? Silver Forming Bullish Reverse Head & Shoulders Pattern
Gold Remains Bullish
Robert Alexander: “My big picture view for gold has not changed, even if we get some pausing along the way at resistance points. They will likely come in the form of box consolidations or bull flags and pennants. (See chart below).
Big Picture For Gold Remains Extremely Bullish
This Can’t Be Real
READ THIS NEXT! THIS CAN’T BE REAL: Look At What Just Cratered, Plus Markets Are Not Fair CLICK HERE TO READ
KWN has just released the powerful audio interview with Gerald Celente and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
More articles to follow…
In the meantime, other important releases…
Greyerz – The Road To $18,160 Gold And The Wisdom Of Jesse Livermore CLICK HERE TO READ
The Price Of Silver Is Finally Ready To Launch Higher, Enjoy The Ride CLICK HERE TO READ
Gerald Celente On Friday’s Action In The Gold Market CLICK HERE TO READ
Gold & Silver Volatility, Serious Problems Underneath The Surface, Plus Another Bullish Gold Catalyst CLICK HERE TO READ
Gold Pullback, First Time Ever, Monetary Madness, And What Has China Worried CLICK HERE TO READ
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