In this video, we are going to discuss the economic indicators that show the true extent of the collapse we are already experiencing, and the fragility of the system that is propping up any semblance of normalcy we have left. We will show you what the experts are saying about where to put your money, and why precious metals may be one of the only safe options remaining.
The US economy has been slowing down and economists are predicting that a major economic collapse is coming. In a recent interview, Guggenheim’s Global CIO Scott Minerd said that the cognitive dissonance in the stock market is stunning as reflected by the ever rising prices and credit spreads. He expressed that this is not a buy the dip market but don’t try to catch a falling knife markets because prices have been plummeting for weeks. The stock market collapse has already begun!
The subject of the economic collapse of late become synonymous with leading media outlets clearly indicating an impending financial disaster evidenced by the worst stock market performance since the Great Depression in 1930. The poor performance in the stock market has been marked with increased volatility in stock prices and termed as the most unfavorable Christmas Eve in Wall Street. To make the economic situation even worse, most economic analyst including Mark Jolley is pessimistic that the situation will still get worse in the coming year as the situation is only at the first half of the global equity bear market.
The ailing economic situation has occurred within a brief period as in 2017; the stock market was at its best only to get worse in 2018 after the global economy took a new turn putting investors with their investments at stake. The financial crisis linked to the bear market is not only being witnessed in the US alone but in many stock markets across the globe which even started declining way before the situation was felt in the US.
The stock market performance in December has been termed as the worst performance of U.S stocks since the Great Depression in 1930. The dramatic decline in stock exchange has been evidenced by two key stock indexes: Dow Jones Industrial Average and the S&P 500 which closed at 7.6% and 7.8%. The significant decline of the two benchmark U.S. stock indexes has led the Russel 2000 to close in the bear market territory, a phenomenon that has greatly stunned economic analysists as well as worry investors across the country. In early October 2018, the Dow Jones average reached an all-time high of 26, 951.81 but dropped more than 3300 points in less than two months to close at 23, 592.98 on Monday with a high probability of an even worse decline.
In the past, the U.S stocks have always ended the year on a high a situation usually referred to as” Santa rally” but this year looks different attributed to a rapid decline in stock’s price. With close to two weeks remaining to mark the end of December, the situation is most likely to worsen indicated the Russell 2000 which stands at 20.6% from highs. The Russell 2000 is a crucial indicator of the movement of the Dow and S&P 500. A high Russell 2000 value points to a falling Dow and the S&P 500.
The Chinese economy has in recent years undergone a series of boom and recesses making it increasingly difficult for investors to realize substantial profits margins due to complexity in differentiating the boom and recesses. The past 30 years have seen China’s economy massively grow by triple figures to be among the world’s leading economies despite being merged with fraud, enormous wastage of resources in addition to theft of public resources by powerful individuals in the government.
The tremendous Chinese economic growth has come with numerous employment opportunities with hundreds of millions of the Chinese population being employed in manufacturing industries found across all major cities across the country. The overall effect of increased employment in China is that the poverty levels have increasingly dropped in addition to massive infrastructural developments were state-of-the-art transportation hubs, high-speed trains, sophisticated telecommunications systems have been launched. The rapid advancement of infrastructure has also significantly contributed to economic growth.