- 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…