• 2 hours Is Silver Gearing Up For A Rally?
  • 5 hours World’s Largest Hedge Fund Turns Bullish On Gold
  • 7 hours It’s Time To Spend More On Clean Energy R&D
  • 23 hours Contrarian Investors Are Beating The Stock Market
  • 1 day Bulgaria’s Revenue Agency Falls Victim To Biggest Cyber Heist In History
  • 1 day Amazon Faces European Union Anti-Trust Probe
  • 1 day Commodities Are Having A Stellar Year
  • 2 days Bezos’ Next Big Project Could Be Worth $100 Billion Per Year
  • 2 days 3,600 Years Later, Climate Change Turns Mammoths Into $40M Market
  • 2 days Tesla, Apple Claim China Is Stealing Intellectual Property
  • 2 days EV Giants Duke It Out For Battery Dominance
  • 3 days Tech Billionaire Takes Aim At Google
  • 3 days Chinese Police Bust Largest Ever Illicit Crypto Mining Operation
  • 3 days Expect A Pullback Before Gold's Next Major Rally
  • 3 days Why Interest On Gold Matters
  • 4 days Ten Extravagant Food Items For The Wealthy Only
  • 4 days Why Saudi Arabia Won't Give Up On The Aramco IPO
  • 5 days $32 Million Crypto Heist Halts Tokyo Exchange
  • 5 days Is A Gold Selloff Looming?
  • 6 days Central Banks Are Stashing Gold And Dumping Treasuries
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Us Revenue, Margin and Manufacturing Recessions

Two Consecutive Quarters of Negative Growth

Full Report: Download pdf 24 Pages

Vhart 1

The NYSE Short Interest Rate (right) is at levels not seen since just before the 2008 collapse of Lehman Bros. during the Financial Crisis. Clearly there is a lot of nervousness and it is more than just the expected drop of -4.5% in the current Q3 quarterly earnings. Revenue are expected to fall -5.0% and this makes it the third consecutive fall in quarterly revenues for the S&P 500. Coupled together this reinforces the fears that the global slowdown is washing ashore in the only global hope for growth being the US Economy.

Chart 2

Corporate Free Cash Flows are additionally falling and along with widening corporate yield spreads now crimps the tsunami of share buybacks which have been holding up the US equity markets against steadily deteriorating bad economic numbers.

Sentiment & Confidence has shifted as we predicted and with it the perception of risk. The worry of a US Economic Recession is now a real possibility. Without Central Bank actions, a 2016 recession is almost a certainty. But what can the Federal Reserve realistically do with rates already near zero (see chart below)?

Chart 3

We presently see the current market activity as a counter rally in a short term correcting market. We believe we have more price downside before the central bankers are forced to rush in more triage to keep this market alive. Expect the Central Bankers to do this when the S&P 500 nears 1800. They can't afford the collateral (underpinning the debt pyramid), to be eroded any further than this level without serious consequences!


What is Coming

Central Bank Options

 

Back to homepage

Leave a comment

Leave a comment