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Thursday, 9 July 2015

The Big Market Warning

Investors' Insights Comments 

There is little doubt we are in the midst of a perfect financial storm, that history will perhaps one day record as "The Mother of All Global Market Crashes". Interest rates were too low, for too long, that created unsustainable bubbles in financial  and real estate markets around the world.This time it is different was again the usual mantra.
It never is. It Never Will Be. It couldn't last! 

Mathematically, everyone denied that a mean reversion of interest rates would ever occur and thereby collapse global asset bubble values everywhere by 50% or more. Guess what? Somebody bought that last tulip, and we are now experiencing the reversion with the full brunt of its present value mathematical consequences.  

Moreover, many economies are facing debt woes and physical economic and climate change issues causing either water,capital or food shortages. You cannot run economies without food, water and energy; somehow Nobel Prize nor Ivy League economists can never  figure this out. 

The FED charts tell us the financial market weather is very bad. Wall St is getting very worried and today's  world headlines tell the story of a free fall in values in Japan, China, Australia and elsewhere, that mirrors all the great stock, bond  and economic meltdowns of past and recent history. Plunging prices for  days and weeks on end - because we just run out of bigger fools..The real laws of supply and demand.

If you have that sinking feeling that things are about to get much worse. One thing you need not worry about, you are not alone.

And remember that old adage  -  when its over, its over!




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