Are The Global Markets Tumbling Again?

 A potential catastrophe could occur when the current economic bubble bursts and Peter Schiff has been warning of this for a while now. The signs of economic distress are finally showing up as global markets tumbled Tuesday with European stocks touching a two-year low while United States equity futures are deep in the red.

Stocks took a nosedive on investors fears of political antics such as the trade war and rising interest rates.

Before the U.S. market opens several major companies will report results; including Caterpillar (CAT); McDonald’s (MCD); Lockheed Martin (LMT); United Technologies (UTX); 3M (MMM); Verizon (VZ); and Harley-Davidson (HOG). Results out of Caterpillar will be most closely watched with investors looking for any signs of inflation pressures; trade tensions; or a slowdown in economic growth out of the industrial giant; which is often seen as a bellwether for the global economy. –Yahoo Finance

In the past eight days; $4 trillion has bee wiped off from what had been recorded high values. According to NBC News;  Europe’s main markets started down as much as 3 percent and shares tumbled in Asia after a wild day for U.S. markets. Two days of steep losses have erased the U.S. market’s gains from the start of this year; ending a spate of record-setting calm for stocks.  The Dow Jones industrial average closed down 1;175 points on Monday; as the market bet on more interest rate hikes; the same day that a new Federal Reserve chairman was sworn in.

On Tuesday; Taiwan’s main index lost 5.0 percent; its biggest since in 2011 and Hong Kong’s Hang Seng Index dropped 4.2 percent. Japan’s Nikkei dived 4.7 percent; its worst fall since November 2016; to four-month lows. Australia’s benchmark S&P ASX 200 slid 3.4 percent; South Korea’s Kospi declined 2.4 percent and the Shanghai Composite index was off 2.2 percent. –NBC News

“It is a source of some concern that asset valuations are so high;” outgoing Federal Reserve chair Janet Yellen told CBS News; highlighting price-earnings ratios in equities.  Yellen appeared to be sounding the alarm on stock prices urging caution. But most economists have foreseen this kind of a market drop.

“Everybody knew this was coming — stocks are close to record valuations and it was a matter of when it was going to happen; not if;” said Dan North; chief economist at Euler Hermes North America. “I would expect that at this point; it’s probably sentiment-driven and we’ll get a rebound.

David Kelly; the chief global strategist for JPMorgan Asset Management agrees with North’s assessment.  “It’s like a kid at a child’s party who; after an afternoon of cake and ice cream; eats one more cookie and that puts them over the edge;” Kelly said.

Last week; many in the mainstream media talked about the trade war; the situation in Italy; and the tensions with Saudi Arabia over the murdered journalist; linking those situations to a sliding market. But Peter Schiff had a different explanation; according to Seeking Alpha; and that is: we’re in a bear market.

“The market probably would have fallen even if none of those things happened. You know; when you’re in a bear market; and I think there’s a very good chance we are in a bear market; you don’t need an excuse for the market to go down. The market just goes down. It’s just that when people don’t know they’re in a bear market; they’re always looking for excuses. They can’t accept reality.” -Peter Schiff; Seeking Alpha

Schiff has been warning of a market collapse for quite some time; and he said it could very well be upon us.

“Now all of a sudden; finally; after all of these years; things are happening; which are screaming; ‘Ah-ha! Right; I’ve been right.’ Here this stuff is now happening; that I’ve been forecasting – these are the sure signs that the collapse is near. Yet; the mainstream is completely oblivious because they have no idea there’s a problem. If you don’t know you’re in a bubble; you don’t see the pins. I’ve been calling this bubble for a long time and finally; it’s pin; pin; pin; right? And nobody sees it.” – Peter Schiff; Seeking Alpha

 

Originally posted 2019-06-19 02:31:51.