The Probability Of A Stock Market Crash Is Soaring

The writing is on the wall for all to see, with another market correction likely through lax monetary policy and from a central monetary authority who are incompetent at best. If the information is available, why is the response nonexistent? Courtesy of The Hedge:

While some individual stocks (cough TWTR cough) may have reached irrational bubble territory, the US equity market is undergoing a seemingly ‘rational’ bubble. However, as John Hussman illustrates in the following chart, the probability of a stock market crash is growing extremely rapidly.

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1929 Redux – Correlation and Coming Correction

If history doesn’t repeat itself, it may just rhyme. I don’t like to try and predict future events with dates attached but for the good old USA and possibly the UK, Japan, Euro et al time maybe up on hiding economic facts. Unless asset prices keep inflating beyond all previous known records and models, anything is possible when all markets are manipulated and controlled, then a correction maybe on it’s way.

Wash, rinse and repeat.

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: ‘Account overdrawn.’” – Ayn Rand

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