Executive Summary

• The economic data is getting darker fast
• The over-indebtedness of the economy is the worst it's ever been
• Predicting the timing of the next major market correction
• As the risks mount, what should the concerned investor do?

If you have not yet read Part 1: Why The Markets Are Overdue For A Gigantic Bust available free to all readers, please click here to read it first.

The Data Says…Another Downturn Is Upon Us

Our view is that a massive market correction is coming, one that may well rip the financial markets apart, and cause very long-term and long lasting damage, possibly to the point of taking generations to repair in any meaningful sense.

In fact things may never actually recover to the current heights because recovery requires energy and there simply isn’t the net energy per capita that existed in the past.

For now, we see plenty of signs of fundamental economic weakness, and this is not surprising at this stage of the so-called economic expansion.  The truth is this expansion has been phony to a large degree, and quite probably should have broken down many times in the past, most recently in early 2016.

But the central banks prevented that and we can all feel thankful at the extra time that has provided us to become more resilient under reasonably calm circumstances.

And yet, the one thing that central banks have never been able to do is... » Read more

There’s something in the air: people are edgy and worried. But about what, exactly?

Despite allegedly rosy economic statistics and endless cheerleading about how the markets have bottomed and how growth is poised to come roaring back, our heads and our guts instead tell us something is very wrong.

People everywhere can feel it. They're expressing varying levels of dissatisfaction: ranging from mildly concerned, to very worried, to downright pissed off.

We see it broadly in the hostility and opinion canyons of the election cycle. Perhaps we’ve experienced it personally, through the ending of a relationship that no longer works as we need it to.

These are the signs of tipping points. The human animal senses the coming tsunami and reacts from a very deep, visceral place where emotions hold sway and reason stumbles.  We are social creatures; and not all of the cues to which we react are visible or quantifiable. » Read more