The odds of a stock market meltdown are higher than in years. The stock market is catching down to economic reality. Here’s how far it may have to go…
You can’t say I didn’t warn you.
In August I wrote the following:
On that note, our proprietary Crash Trigger recorded a signal yesterday morning.
This means the odds of a market meltdown are higher than in years.
That meltdown is now here. And it’s not over by a long shot.
Think of this meltdown as stocks playing “catch up” to economic realities.
Those are the economic realities of a slowing global economy, a deflating housing bubble as a result of Fed rate hikes, and a trade war with China.
Each of these realities had an asset class warning about what was to come. Those asset classes were Copper, Homebuilders, and China’s stock market.
ALL of these suggest stocks are going lower. It’s no longer a question of IF stocks will continue to drop, but a question of how far they will drop.
Copper suggests stocks will drop to 2,500 on the S&P 500.
Homebuilders suggest 2,100 on the S&P 500.
While China suggests 2,300.
NONE of those charts are REMOTELY bullish.
Will we get bounces in the markets such as the one starting today? Absolutely, but the BULL MARKET is OVER. And stocks will eventually enter a full-scale CRASH as the world experiences its first real bout of deflation since 2008.
On that note we just published a 21-page investment report titled Stock Market Crash Survival Guide.
In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.
We are giving away just 100 copies for FREE to the public.
Today there are just a handful left.
To pick up yours, swing by:
Chief Market Strategist
Phoenix Capital Research