The Dow Jones dropped another 296 points on Friday.
The NASDAQ is on pace for the largest monthly decline since the 2008 financial crisis. The Russell 2000 has dropped over 12%. And yet everybody still seems to think everything is fine.
But as Peter Schiff said in his most recent podcast, nobody actually realizes when a bear market starts. When they finally do figure it out, it’s too late. During the last two bear markets, the Federal Reserve has saved the day by reinflating the bubbles. But Peter said the monetary magic isn’t going to work this time around.
https://youtu.be/1J6I0Py8atc
Peter had a feeling October was going to be a bad month. After the last Federal Reserve rate increase, he did a podcast and said it could be the hike that breaks the camel’s back. He said he just didn’t understand how the markets could ignore the rate increases, what was going on more generally with interest rates, the trade war, and the overseas markets that had already tanked.
“It didn’t make sense that the US markets could continue to defy gravity in the face of overwhelming negative evidence that was taking place. And it seemed to me that if the market was going to break, October was a pretty good time for that to happen, given the history we’ve had with October.”
Peter said he doesn’t see any indication that we’ve hit bottom and yet the market still appears to be complacent. Just look at the price of gold.
“The price of gold is still creeping higher, but if there was more fear out there, if people were worried about the market, they would buying gold.”
Peter said if you watch the financial news shows, everybody is saying there’s nothing to worry about.
“Which is exactly what they were saying before the 2008 financial crisis.”
Peter pointed out that when bear markets begin, nobody realizes it’s a bear market. A bear market is defined as a 20% decline. So, until stocks hit that level, it’s not a bear. The pundits tell you to buy the dip.
“So, whenever a bear market begins, all the perma-bulls say, ‘It’s a correction, buy.’ Then, once the market is down 20% and we’re in a bear market, then they say, ‘Well, you know, it’s too late to sell now. We’ve already had the bear market. Now it’s time to buy more because we’re about to have another bull market. So in other words, you never sell. You just hold forever and hope.”
This strategy he worked during the last two bear markets because the Federal Reserve managed to bail out the perma-bulls with monetary magic. Peter said it won’t work again.
“The third time is not the charm. As I’ve been saying, it’s going to be three strikes and everybody is going to be out if they think they are going to be bailed out by the Fed because when the Federal Reserve has to try to revive the markets and the economy by going to a fourth round of QE, when they have to take interest rates back down to zero and do quantitative easing again, the dollar is going to implode. We’re going to have the real crash that was the subject of my most recent book.”
Peter pointed out another subtle indicator that all is not well in the economy. Mohawk Industries’ stock is down some 60%. This is a company tied to the housing and building industry. As Peter has pointed out before, the housing industry is one of the most sensitive to rising interest rates. It’s the first place you will see cracks as rising rates burst the bubbles built on credit and debt. This is just the tip of the iceberg. The auto industry, and retail, in general, is going to be impacted — not only by rising interest rates, but tariffs as well.
The GDP number for the third quarter came in at 3.5% on Friday. It was predominantly driven by consumption. Peter asked a key question:
“How much longer can that consumption go on when wealth is evaporating, when interest rates and prices are going up?”
Peter broke down the GDP numbers and found some things that seem a little bit wonky in the calculations. Listen to the whole podcast for more on that.
Guest Guest
Subject: Stocks lose all their gains in first two hours of trading Mon Oct 29, 2018 12:35 pm
And it's gone! Stocks lose all their gains in first two hours of trading following exuberant dip buying yesterday
8:18 AMbtfd, correction, dow, nasdaq, [url=http://www.shotguneconomics.com/search/label/s%26p 500]s&p 500[/url], selloff, stocksNo Comments On Oct. 26, equity markets have given up all their gains from the day before as the Dow, Nasdaq, and S&P 500 cratered during the first two hours of trading on Friday.
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Thanks in large part to Tesla's Q3 announcement that they had finally achieved a profit here in 2018, and low volume dip buying on the Dow, stocks recovered a modicum of gains on Thursday. However as has been the trend over the past week, every single positive day in the markets has been immediately followed by an even worse selloff that has brought both the Nasdaq and the S&P into correction territory.
Dow:
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S&P 500:
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Nasdaq:
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Subject: Re: Get Ready Peeps = SCHIFF: FED CAN’T STOP NEXT CRASH Says dollar set to implode Mon Oct 29, 2018 12:46 pm
"Extreme Portfolio Pain" Ahead: Morgan Stanley Expects A "Cyclical Bear Market" Slamming The S&P To 2,400
"With the Fed having to respond to still strong economic data and the desire to remain apolitical, we think it could take another 200 S&P points making 2450 a reasonable downside target to consider."
24
13717
OCT 29, 2018 12:23 PM
Guest Guest
Subject: Re: Get Ready Peeps = SCHIFF: FED CAN’T STOP NEXT CRASH Says dollar set to implode Mon Oct 29, 2018 12:47 pm
Trump Is Right: The Fed Is A Big Problem
"The truth is that Fed policy is not the solution to the problem, it is the most significant part of the problem..."
98
13472
OCT 29, 2018 12:53 PM
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Subject: Re: Get Ready Peeps = SCHIFF: FED CAN’T STOP NEXT CRASH Says dollar set to implode Mon Oct 29, 2018 12:50 pm
FANGs Freefall Into Bear Market As Dip-Buyers Evaporate
"Extreme Portfolio Pain" Ahead: Morgan Stanley Expects A "Cyclical Bear Market" Slamming The S&P To 2,400
"With the Fed having to respond to still strong economic data and the desire to remain apolitical, we think it could take another 200 S&P points making 2450 a reasonable downside target to consider."
24 13717 OCT 29, 2018 12:23 PM Overnight Gains Erased As Nasdaq 100 Turns Red On FANG Freefall
Dead cat bounce died again...
28 9497 OCT 29, 2018 12:07 PM IBM Bond Yields, Default Risk Spike After Red Hat Deal
While IBM's stock is bouncing back modestly from an ugly open, bond market participants remain gravely concerned at what damage the Red Hat acquisition could do to IBM's balance sheet...
30 7171 OCT 29, 2018 11:59 AM "A Rough Decade Ahead" - 'Math' & The Future Of The US Housing Market
New Housing is being created at an unprecedented 2.5x's the pace of the growth of the 15-to-64yr/old Population (which do nearly all the net home buying)...
26 20291 OCT 29, 2018 11:50 AM "October Requiem": Goldman Sees Just One Hope Left For A Bounce In Stocks
"The best hope for a bounce in risk assets may be the likelihood that markets are over-reacting, equity markets in particular" but "increasingly, it seems to us, the tailwinds for global growth are harder to see than the headwinds..."
10 9881 OCT 29, 2018 11:30 AM
But, but, but... it's different this time...
"Extreme Portfolio Pain" Ahead: Morgan Stanley Expects A "Cyclical Bear Market" Slamming The S&P To 2,400
"With the Fed having to respond to still strong economic data and the desire to remain apolitical, we think it could take another 200 S&P points making 2450 a reasonable downside target to consider."
OCT 29, 2018 12:23 PM
Overnight Gains Erased As Nasdaq 100 Turns Red On FANG Freefall
Dead cat bounce died again.
OCT 29, 2018 12:07 PM
IBM Bond Yields, Default Risk Spike After Red Hat Deal
While IBM's stock is bouncing back modestly from an ugly open, bond market participants remain gravely concerned at what damage the Red Hat acquisition could do to IBM's balance sheet...
OCT 29, 2018 11:59 AM
"A Rough Decade Ahead" - 'Math' & The Future Of The US Housing Market
New Housing is being created at an unprecedented 2.5x's the pace of the growth of the 15-to-64yr/old Population (which do nearly all the net home buying)...
OCT 29, 2018 11:50 AM
"October Requiem": Goldman Sees Just One Hope Left For A Bounce In Stocks
"The best hope for a bounce in risk assets may be the likelihood that markets are over-reacting, equity markets in particular" but "increasingly, it seems to us, the tailwinds for global growth are harder to see than the headwinds..."
OCT 29, 2018 11:30 AM
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Subject: Economist’s Warning: On November 1, There Will Be A 70% Stock Market Crash Mon Oct 29, 2018 12:57 pm
Economist’s Warning: On November 1, There Will Be A 70% Stock Market Crash
Mac Slavo October 29th, 2018 SHTFplan.com
Out of all of the dire warnings coming from economists about the impending market collapse, one sticks out as exceptionally terrifying. Famed economist Ted Bauman is now warning that “There are three key economic indicators screaming sell. They don’t imply that a 70% collapse is looming, it’s already at our doorstep.” Bauman and his team correctly predicted the collapse of 1999 and 2007. But this is one distinct warning that should send chills down your spine. According to Banyan Hill,Bauman isn’t the only economist making predictions and sounding alarms about this “health economy” the mainstream media continues to insist is going strong. However, if Bauman says the market will crash 70%, one should consider listening to him. Over the last three decades, Bauman has accurately predicted the financial crisis of 2008, the dot.com crash of 2000, the recession of the early 1990s, and the 1987 crash. Additionally, when Bauman makes a prediction, he backs it up. True to form, in a new and considerably controversial video, Bauman uses over a dozen indisputable charts to prove his point that a 70% stock market crash is here. Most alarming of all though. is what Bauman says will cause the collapse. It has nothing to do with interest rates, government debt, tariffs, or China, although those will all take their tolls on the economy as well. Instead, it is linked back to a little-known scheme that was deemed illegal for triggering the 1929 market crash. It is a scheme that was made legal again. That practice is companies buying back their own stocks to artificially inflate the market. But Bauman does believe there is a way to prepare. According to his video, there’s nothing anyone can do to stop the inevitable November 1 crash, which could see nest eggs wiped out but you can make it through. Bauman claims buying stock market crash resistant stocks will be a good place to start. Although he doesn’t specifically list which stocks you should choose, we did some digging and found a few that could be viable options for investors. According to Fool.com, three of these stocks that should be at the top of your shopping list during the next market crash are American Express (NYSE:AXP), Starbucks (NASDAQ:SBUX), and Brookfield Infrastructure Partners L.P. (NYSE:BIP). They’ve all proven to be market-crushing investments for people who bought the last time there was a big market crash, and they retain the same characteristics that make them ideal long-term investments.
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Subject: Re: Get Ready Peeps = SCHIFF: FED CAN’T STOP NEXT CRASH Says dollar set to implode
Get Ready Peeps = SCHIFF: FED CAN’T STOP NEXT CRASH Says dollar set to implode
Subject: Get Ready Peeps = SCHIFF: FED CAN’T STOP NEXT CRASH Says dollar set to implode 
Mon Oct 29, 2018 12:26 pm
