Why the Next Stock Market Crash Will Happen Any Day Now
http://www.moneynews.com/Newswidget/Market-Collapse-Finance-Stocks/2013/03/01/id/492699
There is overwhelming evidence that the next stock market crash could strike any day now, and a growing number of investors are turning to a noted economist to prepare for the “unthinkable.”
The message is clear: Despite the Dow hitting pre-crash highs, companies reporting positive earnings, and the financial media saying we are looking at the “beginning of a new bull market,” the stock market is on the verge of another historic collapse.
The evidence is in a group of charts released by some of the biggest names on Wall Street.
Individually, these charts may not mean much. But taken collectively, they are simply too much for any investor to ignore.
The first chart shows that the annual S&P 500 consensus earnings-per-share is expected to come in much lower than originally thought. Estimates started out near $125 in January 2012, and have now fallen 10% to only $112. Despite the warning sign of falling earnings, the S&P continues to climb.
[Spoiler (click to open)]
The second chart shows that stocks are currently very expensive compared to their 10-year average. While stocks typically have a price-to-earnings ratio of 15, they now sit at a ratio closer to 23. That means stocks are priced 53% higher than their 10-year average, which should worry any investor.
The third chart shows that investors are extremely bullish on the market right now. The reading is nearing a 10-year high, and most of us know from experience what happens when market sentiment is too far one way or the other; a snapback occurs. If the “herd” is this bullish, it’s generally a good idea to be very cautious.
The fourth chart shows that the VIX, or volatility index, is near a historic low. As the markets have rebounded over the last few years, investors have become complacent. They have priced nearly all risk out of the market, and it will only take one scary event to send volatility higher and investors fleeing the markets.
And finally, the fifth chart shows that the last two times the market climbed this high, a severe correction took place. The first two advances were over 100%, and then followed by a crash of roughly 50%. With the latest rally topping 100%, it is very likely that the market is setting up for another drastic correction.
With the evidence of a market crash growing every day, many investors have turned to a noted economist for a help.
Robert Wiedemer, who along with a team of economists correctly predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States during the “Great Recession,” recently recorded a controversial interview in which he predicts that the coming market crash will result in a 90% stock market drop, 50% unemployment, and 100% annual inflation starting this year.
When the host of the interview expressed disbelief in Wiedemer’s claims, he calmly displayed his own indisputable charts to back up his predictions, such as the one below. (Click here to see those exact charts.)
The interview has become a wake-up call for those unprepared (or unwilling) to acknowledge an ugly truth: The country’s financial “rescue” devised in Washington has failed miserably.
The blame lies squarely on those whose job it was to avoid the exact situation we find ourselves in, including current Fed Chairman Ben Bernanke and former Chairman Alan Greenspan, tasked with preventing financial meltdowns and keeping the nation’s economy strong through monetary and credit policies.
At one point, Wiedemer even calls out Bernanke, saying that his “money from heaven will be the path to hell.”
But it’s not just the grim predictions that are causing the sensation in Wiedemer’s video interview. Rather, it’s his comprehensive blueprint for economic survival that’s really commanding global attention.
The interview offers realistic, step-by-step solutions that the average hard-working American can easily follow.
Editor’s Note: See the 5 signs the stock market will collapse in 2013. Click here now.
“[The interview] was originally filmed for a private audience,” explained financial publisher Aaron DeHoog, who is unapologetic about the release of controversial footage. “People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it.”
Since that day, over 40 million concerned citizens have tuned in to prepare for “the unthinkable.”
As for the media giant that wanted to ban the video, DeHoog was able to work out a compromise.
“We agreed to tweak the webpage some, but we didn’t change the content of the interview. That had to stay the same. The interview simply states the financial data as is, and then simple, practical advice is given that viewers can take to protect their wealth, and even profit, during the days ahead.”
Asked if he is concerned if Wiedemer’s predictions don’t come true, DeHoog replied, “Absolutely not. The best-case scenario is that Wiedemer is wrong.
“Unfortunately, he has been dead-on thus far. No, our real concern is this, and it’s the more likely scenario - what if just half of Wiedemer’s predictions come true? Bottom line, it is imperative that Americans be prepared, and that is why we will continue to air this powerful interview.”
Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Newswidget/Market-Collapse-Finance-Stocks/2013/03/01/id/492699#ixzz2fdlYwehH
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There is overwhelming evidence that the next stock market crash could strike any day now, and a growing number of investors are turning to a noted economist to prepare for the “unthinkable.”
The message is clear: Despite the Dow hitting pre-crash highs, companies reporting positive earnings, and the financial media saying we are looking at the “beginning of a new bull market,” the stock market is on the verge of another historic collapse.
The evidence is in a group of charts released by some of the biggest names on Wall Street.
Individually, these charts may not mean much. But taken collectively, they are simply too much for any investor to ignore.
The first chart shows that the annual S&P 500 consensus earnings-per-share is expected to come in much lower than originally thought. Estimates started out near $125 in January 2012, and have now fallen 10% to only $112. Despite the warning sign of falling earnings, the S&P continues to climb.
[Spoiler (click to open)]
The second chart shows that stocks are currently very expensive compared to their 10-year average. While stocks typically have a price-to-earnings ratio of 15, they now sit at a ratio closer to 23. That means stocks are priced 53% higher than their 10-year average, which should worry any investor.
The third chart shows that investors are extremely bullish on the market right now. The reading is nearing a 10-year high, and most of us know from experience what happens when market sentiment is too far one way or the other; a snapback occurs. If the “herd” is this bullish, it’s generally a good idea to be very cautious.
The fourth chart shows that the VIX, or volatility index, is near a historic low. As the markets have rebounded over the last few years, investors have become complacent. They have priced nearly all risk out of the market, and it will only take one scary event to send volatility higher and investors fleeing the markets.
And finally, the fifth chart shows that the last two times the market climbed this high, a severe correction took place. The first two advances were over 100%, and then followed by a crash of roughly 50%. With the latest rally topping 100%, it is very likely that the market is setting up for another drastic correction.
With the evidence of a market crash growing every day, many investors have turned to a noted economist for a help.
Robert Wiedemer, who along with a team of economists correctly predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States during the “Great Recession,” recently recorded a controversial interview in which he predicts that the coming market crash will result in a 90% stock market drop, 50% unemployment, and 100% annual inflation starting this year.
When the host of the interview expressed disbelief in Wiedemer’s claims, he calmly displayed his own indisputable charts to back up his predictions, such as the one below. (Click here to see those exact charts.)
The interview has become a wake-up call for those unprepared (or unwilling) to acknowledge an ugly truth: The country’s financial “rescue” devised in Washington has failed miserably.
The blame lies squarely on those whose job it was to avoid the exact situation we find ourselves in, including current Fed Chairman Ben Bernanke and former Chairman Alan Greenspan, tasked with preventing financial meltdowns and keeping the nation’s economy strong through monetary and credit policies.
At one point, Wiedemer even calls out Bernanke, saying that his “money from heaven will be the path to hell.”
But it’s not just the grim predictions that are causing the sensation in Wiedemer’s video interview. Rather, it’s his comprehensive blueprint for economic survival that’s really commanding global attention.
The interview offers realistic, step-by-step solutions that the average hard-working American can easily follow.
Editor’s Note: See the 5 signs the stock market will collapse in 2013. Click here now.
“[The interview] was originally filmed for a private audience,” explained financial publisher Aaron DeHoog, who is unapologetic about the release of controversial footage. “People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it.”
Since that day, over 40 million concerned citizens have tuned in to prepare for “the unthinkable.”
As for the media giant that wanted to ban the video, DeHoog was able to work out a compromise.
“We agreed to tweak the webpage some, but we didn’t change the content of the interview. That had to stay the same. The interview simply states the financial data as is, and then simple, practical advice is given that viewers can take to protect their wealth, and even profit, during the days ahead.”
Asked if he is concerned if Wiedemer’s predictions don’t come true, DeHoog replied, “Absolutely not. The best-case scenario is that Wiedemer is wrong.
“Unfortunately, he has been dead-on thus far. No, our real concern is this, and it’s the more likely scenario - what if just half of Wiedemer’s predictions come true? Bottom line, it is imperative that Americans be prepared, and that is why we will continue to air this powerful interview.”
Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Newswidget/Market-Collapse-Finance-Stocks/2013/03/01/id/492699#ixzz2fdlYwehH
Urgent: Should Obamacare Be Repealed? Vote Here Now!