Investors Brace For Impact As The Cancer That Is Ravaging “The Real Economy” Starts To Spread

2019 sure has been a weird year so far. On Wall Street, everything has been coming up roses for investors up to this point. Stock prices have risen more than 10 percent year-to-date, and the horrible crashes of late last year are quickly fading from memory. Meanwhile, the real economy is literally falling to pieces right in front of our eyes. Debt delinquencies are at unprecedented levels, bankruptcies are soaring, retail stores are closing at a record pace, this is the worst economy for farmers since the early 1980s, exports are plummeting and a brand new real estate crisis has now begun. Economic cancer is rapidly spreading throughout our country, and the U.S. economy is deteriorating at the fastest pace that we have seen since the last recession. So how long will it be before Wall Street catches up with economic reality?

18 Really Big Numbers That Show That The U.S. Economy Is Starting To Fall Apart Very Rapidly

Virtually every piece of hard economic data is telling us that the U.S. economy is slowing down dramatically. Many of the pundits have been warning that we could officially enter recession territory later this year or next year, but these numbers seem to indicate that it could happen a whole lot sooner than that. But the stock market has been surging over the last two months, and at this point stocks are off to their best start to a year since 1987, and as long as stock prices are rising a lot of people are simply not going to pay much attention to the economic alarm bells that are ringing. But everyone should be paying attention, because things are really starting to get bad out there. The following are 18 really big numbers that show that the U.S. economy is starting to fall apart very rapidly…

The “Stock Market Crash Of 2018” Is Rapidly Transforming Into “The Financial Crisis Of 2019”

Stock markets are crashing all over the world, we are seeing extremely violent “flash crashes” in the forex marketplace, economic conditions are slowing down all over the globe, and fear is causing many investors to become extremely trigger happy. The stock market crash of 2018 wiped out approximately 12 trillion dollars in global stock market wealth, but things were supposed to calm down once we got into 2019. But clearly that is not happening. After Apple announced that their sales during the first quarter are going to be much, much lower than previously anticipated, Apple’s stock price started shooting down like a rocket and by the end of the session on Wednesday the company had lost 75 billion dollars in market capitalization. Meanwhile, “flash crashes” caused some of the most violent swings that we have ever seen in the foreign exchange markets…

A Surprise Announcement Has Just Unleashed Another Wave Of Panic On Wall Street

Well, that sure didn’t take long. Many had been hoping that 2019 would be a calmer year for Wall Street, but so far that has not materialized. In fact, a surprise announcement by Apple has just sparked another wave of panic selling on Wall Street. In a letter to shareholders, Apple CEO Tim Cook admitted that first quarter revenue is going to be way, way below expectations. That immediately set off “flash crashes” all over the globe as investors reacted to this unexpected news. According to Cook, the primary reason for the coming “revenue shortfall” is a slowing economy in China

2019: It Is Going To Be Much Worse Than You Think…

The beginning of a new year is supposed to be all about hope, right? And I would certainly like to tell you that 2019 is going to be America’s best year ever and that everybody is going to receive a double portion of blessing, prosperity and happiness, but that simply would not be true. Unfortunately, the truth is that the elements for a “perfect storm” are rapidly coming together and 2019 is going to be an exceedingly challenging year. Of course 2018 wasn’t exactly a wonderful year either. I really like how Dave Barry made this point in his most recent article

2018 Was The Worst Year For The Stock Market Since The Financial Crisis Of 2008

Now that the year is finally over, we can officially say that 2018 was the worst year for stocks in an entire decade. Not since the last financial crisis have we had a year like this, and many believe that 2019 will be even worse. And of course the truth is that stocks are still tremendously overvalued. Stock valuation ratios always return to their long-term averages eventually, and if the Dow Jones Industrial Average plunged another 8,000 points from the current level that would begin to get us into that neighborhood. Unfortunately, the system is so highly leveraged that it will not be able to handle a price decline of that magnitude. The relatively modest drops that we have seen already have caused a tremendous amount of chaos on Wall Street, and a full-blown meltdown would quickly result in a nightmare scenario potentially even worse than what we experienced in 2008.

This Is Exactly The Kind Of Behavior That You Would Expect During A Stock Market Implosion…

If a doctor tells you that his patient’s condition is swinging up and down wildly, is that a good sign or a bad sign? Of course the answer to that question is quite obvious. And if a doctor tells you that his patient’s condition is “stable”, is that a good sign or a bad sign? Just like in the medical world, instability is not something that is a desirable thing on Wall Street, and right now we are witnessing extreme volatility on an almost daily basis. On Thursday, the Dow was already down several hundred points when I went out to do some grocery shopping with my wife, and at the low point of the day it had fallen 611 points. But then a “miracle happened” and the Dow ended the day with an increase of 260 points. As I detailed yesterday, this is precisely the sort of behavior that you would expect during a chaotic bear market.

U.S. Stocks Just Had Their Best Day Ever – And Here Is Why That Is A REALLY Bad Sign…

The Dow Jones Industrial Average just posted its biggest single day point gain ever. On Wednesday, the Dow shot up 1,086 points, which shattered the old record by a staggering 150 points. It truly was a remarkable day, and this is the sort of “Santa Claus rally” that investors had been hoping for. Many are convinced that this rally is an indication that the crisis of the last three months is over, but as you will see below, this sort of extreme volatility is actually a really bad sign. But for the moment, the mainstream media is pushing the narrative that everything is once again peachy keen in the financial world. Just consider the following quote from CNN

“The Worst Is Yet To Come Next Year”

When talking heads on mainstream news networks are using phrases such as “the worst is yet to come next year”, that is a clear indication that a new financial crisis has arrived. And that is an extremely bold statement to make considering that this is already the worst quarter for the stock market in 10 years, this is the worst December for stock prices since 1931, and we just experienced the worst Christmas Eve that Wall Street has ever seen. So when Mark Jolley made the following statement during a recent guest appearance on CNBC, it definitely raised some eyebrows…

The Worst Christmas Eve For The Stock Market EVER – The Dow Has Now Fallen More Than 5000 Points From The Peak

This is definitely not the gift that investors wanted for Christmas. On Monday, the Dow Jones Industrial Average plunged 653 points as panic swept through Wall Street like wildfire. That represented a 2.9 percent daily decline, and that made it the worst Christmas Eve for the Dow ever recorded. Incredibly, the previous record had lasted for exactly 100 years. Normally the day before Christmas is a very, very quiet day on Wall Street, but right now there are no “normal” days for the financial markets. If you go back to early October, the Dow Jones Industrial Average hit an all-time record high of 26,951.81, and on Monday the Dow closed at just 21,792.20. That means that the Dow has now plummeted more than 5,000 points in less than three months, and that is a major milestone.

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