Why A Near-Term Market Rollover is Probable

Wednesday, April 11, 2012, 11:44 AM
Enroll NowFor enrolled members only. Enroll or Sign in to read the full article.

Why a Near-Term Market Rollover is Probable

by Charles Hugh Smith, contributing editor
Wednesday, April 11, 2012

Executive Summary

  • A plethora of technical indicators show a breakdown is in progress
  • The key charts you need to be aware of
  • Time to place your bets: higher equity prices or higher interest rates?
  • Why a defense strategy in the near term is critical for those holding stocks and bonds

Part I: Are We Heading for Another 2008?

If you have not yet read Part I, available free to all readers, please click here to read it first.

Part II: Why a Near-Term Market Rollover is Probable

In Part I, we summarized the global financial meltdown of 2008 as recognition that the collateral beneath an enormous inverted pyramid of leveraged debt had vanished, while all the monetary and fiscal tricks of central banks and governments failed to sustain the illusion of sufficient collateral.

Once again we find that massive, sustained intervention in global financial markets is being touted as successful – everything has been “fixed,” markets have been “stabilized,” and a global “recovery” is well underway,

If we believe this, we might be exposed to a dramatic downside should 2012 turn out to be another 2008, when markets realized that intervention did not create collateral, but instead a temporary illusion of sufficient collateral. 


Enroll Now
Or Sign In with your enrolled account.
Endorsed Financial Adviser Endorsed Financial Adviser

Looking for a financial adviser who sees the world through a similar lens as we do? Free consultation available.

Learn More »
Read Our New Book "Prosper!"Read Our New Book

Prosper! is a "how to" guide for living well no matter what the future brings.

Learn More »


Related content

15 Comments on Why A Near-Term Market Rollover is Probable

Enroll now or Sign In to read all member comments.