HSBC - Warns of Severe Fall In Stock Market And Other Warnings

I came across a number of articles and videos for you to read and watch.

Please note, a collapse in the stock market doesn’t mean the “Death of the Dollar” or the “end of the USD as a Reserve Currency”. It’s important to note that there is always going to be bad news, but you don’t have to panic and rush out of the house stocking up on needless supplies.

Hopefully, you have already a good store of food and water, just in case people panic and there are delivery shortages. Either way, I personally don’t think that you have to subscribe to a magazine to “learn the secrets” of what to do to protect your family, there are plenty of free articles, which I will be sharing in the coming weeks.

I have subscriptions to many websites and magazines and will be happy to share with you what they are saying, for free.

Now, here I am presenting three unique articles, I hope you read them in their entirety. Don’t worry about your dollar, for now, just read these articles and please comment below, thanks.

Last Updated On: October 12, 2016
By: Nick Giammarino Subscribe to the Global Currency Reset Newsletter

RED ALERT — Get ready for a ‘severe fall’ in the stock market, HSBC says
http://www.businessinsider.com/hsbc-red-alert-get-ready-for-a-severe-fall-in-the-stock-market-2016-10

HSBC’s technical-analysis team has thrown up the ultimate warning signal.

In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on “RED ALERT” for an imminent sell-off in stocks given the price action over the past few weeks.

Gunn uses a type of technical analysis called the Elliott Wave Principle, which tracks alternating patterns in the stock market to discern investors’ behavior and possible next moves.

In late September, Gunn said the stock market’s moves looked eerily similar to those just before the 1987 stock market crash. Citi’s Tom Fitzpatrick also highlighted the market’s similarities to the 1987 crash just a few days ago. On September 30, Gunn said stocks were under an “orange alert,” as they looked to him as if they had topped out.

And now, given the 200-point decline for the Dow on Tuesday, Gunn thinks the drop is here.

“With the US stock market selling off aggressively on 11 October, we now issue a RED ALERT,” Gunn said in the note. “The fall was broad-based and the Traders Index (TRIN) showed intense selling pressure as the market moved to the lows of the day. The VIX index, a barometer of nervousness, has been making a series of higher lows since August.”

Gunn said the selling would truly set in if the Dow Jones Industrial Average were to fall below 17,992 or if the S&P 500 were to dip under 2,116. The Dow closed at 18,128 on Tuesday, while the S&P settled at 2,136.

“As long as those levels remain intact, the bulls still have a slight hope,” Gunn said.

“But should those levels break and the markets close below (which now seems more likely), it would be a clear sign that the bears have taken over and are starting to feast. The possibility of a severe fall in the stock market is now very high.”

Watch out.

80% Stock Market Crash To Strike in 2016, Economist Warns
http://thesovereigninvestor.com/exclusives/80-stock-market-crash-to-strike-in-2016/
Several noted economists and distinguished investors are warning of a stock market crash.

Jim Rogers, who founded the Quantum Fund with George Soros, went apocalyptic when he said, “A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans.”

Mark Faber, Dr. Doom himself, recently told CNBC that “investors are on the Titanic” and stocks are about to “endure a gut-wrenching drop that would rival the greatest crashes in stock market history.”

And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.”

Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively.

Even the Royal Bank of Scotland says the markets are flashing stress alerts akin to the 2008 crisis. They told their clients to “Sell Everything” because “in a crowded hall, the exit doors are small.”

Blue chip stocks like Apple, Microsoft, and IBM will plunge.

But there is one distinct warning that should send chills down your spine … that of James Dale Davidson. Davidson is the famed economist who correctly predicted the collapse of 1999 and 2007.

Davidson now warns, “There are three key economic indicators screaming SELL. They don’t imply that a 50% collapse is looming – it’s already at our doorstep.”

And if Davidson calls for a 50% market correction, one should pay heed.

Editor’s Note: American seniors have been worried about our nation’s ability to continue to pay out Social Security. Leaked Reports.

Indeed, his predictions have been so accurate, he’s been invited to shake hands and counsel the likes of former presidents Ronald Reagan and Bill Clinton — and he’s had the good fortune to befriend and convene with George Bush Sr., Steve Forbes, Donald Trump, Margaret Thatcher, Sir Roger Douglas and even Boris Yeltsin.

They know that when Davidson makes a prediction, he backs it up. True to form, in a new controversial video, Davidson uses 20 unquestionable charts to prove his point that a 50% stock market crash is here.

Most alarming of all, is what Davidson says will cause the collapse. It has nothing to do with the China meltdown, Wall Street speculation or even the presidential election. Instead, it is linked back to a little-known economic “curse” that our Founding Fathers warned our elected officials about … a curse that was recently triggered.

And although our future may seem bleak, as Davidson says, “There is no need to fall victim to the future. If you are on the right side of what’s ahead, you could seize opportunities that come along once, maybe twice, in a lifetime.”

Perhaps most importantly, in this new video presentation, Davidson reveals what he and his family are doing to prepare right now. (It’s unconventional and even controversial, but proven to work.)

While Davidson intended the video for a private audience only, original viewers leaked it out and now thousands view this video every day.

One anonymous viewer wrote: “Davidson uses clear evidence that spells out the looming collapse, and he does it in a simple language that anyone can understand.” (Indeed, Davidson uses a sandcastle, a $5 bill, and straightforward analogies to prove his points.)

Bubble building up! Global bond markets headed for a crash: Swaminathan Aiyar

Read more at:
http://economictimes.indiatimes.com/articleshow/54808646.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
http://economictimes.indiatimes.com/markets/bonds/view-why-bond-market-matters-more-than-stock-market/articleshow/54808646.cms

Global bonds are worth over $100 trillion, while global stocks are worth only $64 trillion. Daily bond trading is $700 billion against $200 billion for shares. Stock markets hog the limelight. But bond markets matter more. Danger: they have become big bubbles. The surest sign of a bubble is that craziness is viewed as the new normal — like negative interest rates for European and Japanese bonds. Money is valuable, so people historically have paid interest to borrow.

That has induced saving, promising savers a decent return. Time to Get Loanly But today’s negative interest rates mean that savers lose money, and borrowers are paid to borrow. That’s right out of Alice in Wonderland. Yet, Wonderland is now regarded as normal by global markets, and as desirable by the IMF.

The lower the interest rate, the higher the bond prices. So, ultralow rates mean stratospheric bond prices. Skyhigh prices for bonds that yield nothing represent irrational exuberance, reminiscent of the dotcom bubble of 2000 and the derivatives bubble of 2008. After the 2008 crash, central banks of developed countries pumped trillions into financial markets to revive growth. They slashed shortterm interest rates to zero, hoping cheap money would stimulate fresh investment. However, longterm rates (that matter more for investment) remained higher. So, central banks went for ‘quantitative easing’ (QE) — massive purchases of longterm bonds — to lower longterm rates. This had limited success in the US and little in Europe or Japan, where businesses still refused to borrow and invest. Growth remained tepid. The IMF and others believe QE revived the US. QE there ended in 2014, and the Fed raised the shortterm interest rate to a still ultralow 0.250.50 per cent. The economy revived in 2015, but slowed again in 2016 to barely 1 per cent.

While doing little for growth, QE robbed savers of a return on their savings. Tenyear US gilts today yield just 1.6 per cent. So, a million dollars invested in 10year gilts will produce an annual income of only $16,000, far below the poverty line of $24,500 for a family of four. A whopping $11 trillion of bonds now carry negative yields in several countries: Japan, Germany, Switzerland, Denmark, Austria, Sweden, Holland and Finland. Central banks say the big risks today are deflation and stagnation, which should be combated by negative interest rates. IMF officials accept that negative rates carry a risk of financial instability, but think the bigger risk is stagnation and deflation. They hope growth will gradually resume, interest rates will gradually become positive again, and we can all move, like Alice, from Wonderland back to the normal world.

Alas, the notion that central banks can deflate bubbles in a controlled manner is probably a delusion of grandeur. Far more likely is a massive market crash when central banks try to exit Wonderland. Since all asset markets are highly correlated today, a bond crash could mean a crash in all markets, causing another financial crisis and recession. This is not certain, but is a clear risk. QE means that major central banksare massive holders of bonds, including corporate bonds.

More than $3 billion of corporate bonds now carry negative yields.

This madness now threatens bank stability. Financial regulations do not require banks to mark to market gilts, save those earmarked for trading. But all corporate bonds must be marked to market. The Bond Loosens Rising corporate bond prices have boosted bank profits. But when interest rates ultimately rise and QE is unwound, bond prices could suffer a panicky crash, causing huge losses for banks, pension funds, mutual funds and insurance companies. That could mean another big financial crisis. The US Fed has stopped buying bonds, but has not yet sold its massive holdings, as it must do some day. So must the European and Japanese central banks. Backed by the IMF, they believe that day is still far off, that European and Japanese economies are so anaemic that interest rates should remain zero or negative for quite some time.

So, an exit from Wonderland is not in sight. This has lulled markets to believe that negative yields are not craziness but the new normal. Layman will ask: why on earth will anybody buy a bond with a negative interest rate? Answer: in the hope that rates will get even more negative, so bond prices will rise further, and you can sell at a profit to another guy who believes rates will get even more negative and enable him to sell at a still higher price. Ponzi ahoy! The bond market used to be dominated by institutions in search of safe, stable yields. It has now become a haven for speculators betting on ever more negative interest rates that produce capital gains. This will probably end in what economists call a Minsky moment, when reality finally hits the speculators in Wonderland, causing a panicky crash. Central banks think they can orchestrate an orderly winding down of markets.