Signs, Long Unheeded, Now Point to Risks in U.S. Economy – New York Times 08-25-15

Salient to Investors: More and more analysts are pointing to problems in China and other markets as posing a real threat to the American economy. Raoul Pal at the Global Macro Investor said the global GDP pie is shrinking and cites the dollar’s upward move against nearly all emerging-market currencies. In

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This Swan Is White! – Seeking Alpha 08-25-15

Salient to Investors: Ivan Martchev at Navellier & Assoc writes: Last week’s equity collapse was predicted by the dramatic increase in the spread between junk bonds and Treasuries. Credit spreads are good overall indicators. The sell-off in junk bonds was caused by weak commodity prices: new capacity in hard commodities and energy has

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Can Kickers United – Why It’s Getting Downright Hazardous Out There – David Stockman’s Contra Corner 08-22-15

Salient to Investors: David Stockman writes: The real danger comes from the official institutions who have lapsed into empty ritualism and contrivance while the global economy and financial system becomes more unstable by the day. No sane person would inject $95 billion of new debt into busted Greece, or consider another round of fiscal stimulus

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Here Are the Ominous Signs a Crushing Stock Market Correction Looms – TheStreet.com 08-15-15

Salient to Investors: James Hickman writes: Uninterrupted streaks in which the S&P 500 closes within 10% of its all ­time peak historically precede sudden declines: viz the tech bubble of the 1990s and the credit/housing bubble of the 2000s. The median decline from the peak is ­43% and typically takes 13

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Gross Sees Global Economy Dangerously Close to Deflation – BloombergBusiness 08-07-15

Salient to Investors: Bill Gross at Janus Capital said: The global economy is dangerously close to deflationary growth. Any whiff of deflation and things tend to reverse and go badly. The CRB Commodity Index is lower than in 2008 when Lehman went bankrupt.  Oil, metals and crops have plunged due to

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Pension Funds Hunting Yield Return to Bonds Tied to Risky Loans – BloombergBusiness -7-22-15

Salient to Investors: Citigroup said pension funds bought 8% of the top-rated US CLOs, which slice high-yield loans into securities with varying risks , and 7% of the riskier mezzanine notes in Half1, 2015, versus minimal amounts a few years ago. Pension purchases accounting for 26% of new top-rated debt in

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Commodities Collapsed Just Before The Last Stock Market Crash – So Guess What Is Happening Right Now? – The Economic Collapse 07-22-15

Salient to Investors: Michael Snyder writes: Global debt is at record highs, too big to fail banks have never been more reckless, and global financial markets have never been more primed for a collapse. Most people lack the patience to wait for long-term trends to play out so if the stock market is

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The Curse Of The Euro: Money Corrupted, Democracy Busted – David Stockman’s Contra Corner 07-17-15

Salient to Investors: David Stockman writes: Germany has set fire to the Eurozone in order to save it. Lending another $96 billion to a bankrupt country makes no sense, while the fiscal targets set for Greece are ridiculous. Greece has a de facto public debt of $400 billion vs. $200 billion of GDP. Within days the

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Urgent Warning: 6 Signs the Great Crash Is Upon Us! – David Stockman’s Contra Corner -7-16-15

Salient to Investors: Harry Dent writes: All the signs point to the end of the global bubble. The greatest trigger will be the bursting of the massive, unprecedented China bubble. China’s stock market loss of 35% in less than 30 days signals its stock bubble has peaked: a drop of 30% to 40%

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