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Real Estate: The Downside Risk in 20 Major U.S. Cities

I like to practice what I preach. I don’t own my home. I rent. I’ve been renting my house in Tampa since October 2005, because I’ve seen what’s coming – the bursting of the greatest real estate bubble in modern history. I don’t want to get caught up in the storm when it hits… and I don’t want you to either. That’s why I’ve been saying you should sell all non-essential real estate as this bubble has rekindled – and hence, is in danger of bursting again. I realize that’s not an easy decision to make. I can talk people […]

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Deflationary Collapse Ahead?

Both the stock market and oil prices have been plunging. Is this “just another cycle,” or is it something much worse? I think it is something much worse. Back in January, I wrote a post called Oil and the Economy: Where are We Headed in 2015-16? In it, I said that persistent very low prices could be a sign that we are reaching limits of a finite world. In fact, the scenario that is playing out matches up with what I expected to happen in my January post. In that post, I said Needless to say, stagnating wages together with rapidly rising costs […]

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CNN Tells Americans That The Stock Market Is Not Going To Crash

On Wednesday we witnessed the third largest single day point gain for the Dow Jones Industrial Average ever.  That sounds like great news until you realize that the two largest were in October 2008 – right in the middle of the last financial crisis.  This is a perfect example of what I wrote about yesterday.  Every time the market crashes, there are huge up days, huge down days and giant waves of market momentum.  Even though the Dow was up 619 points on Wednesday, overall we are still down more than 2,000 points from the peak of the market.  During […]

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Get With the Program: Bubbles Don’t Correct, They BURST!

I’m practically drowning in interviews. I had half a dozen yesterday and even more today. But it’s time to put the word out that the second greatest bull march in history is finally coming to an end. It’s done. Wall Street thinks this is a correction – a 10% drop, maybe 20% at worst, followed by more gains. They think we’re just six years into a 10 if not 20 year bull market. This is just a healthy breather. Of course they think that! It’s the same “bubble-head” logic you find at the top of any extreme market in history! […]

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During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum

This is exactly the type of market behavior that we would expect to see during the early stages of a major financial crisis.  In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this time around will not be any different.  As I have explained repeatedly, markets tend to go up when things are calm, and they tend to go down when things get really choppy.  During a market meltdown, we fully expect to see days when the stock market absolutely soars.  Waves of panic selling are often followed by waves […]

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Theory On China’s Gold Strategy

BullionStar Developments at the Chinese central bank (PBOC) hint at more moves towards gold. The most important recent gold developments are; (i) the PBOC updated its official gold reserves from 1,054 tonnes to 1,658 tonnes on 17 July, (ii) the PBOC devalued the renminbi by approximately 3 % on 11 August, (iii) the PBOC again updated its official gold reserves on 15 August, increasing the gold reserves by 19 tonnes to 1,677 tonnes and for the first time values the gold reserves mark-to-market. So, what are we looking at? Well, on one hand the updates in the official gold reserves are intended […]

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BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days

On Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days. But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday.  In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow.  Over in Asia, Japanese stocks were down 895 […]

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It’s Finally Happening: The Crash Season Is Upon Us

It’s finally happening. The crash season is upon us. We’ve seen the early signs this week with leading stocks getting the carpet swept out right from underneath them. China’s stocks are right where they were when its bubble burst 35% into July. UK stocks are in a correction. The DAX is in a correction. And the S&P 500 hasn’t busted quite as much – yet – but it’s dipped below that important level of 2,000 at the bottom of the S&P 500 Channel going back to late 2011. That strongly suggests the market has topped and the great crash is […]

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This 2 Day Stock Market Crash Was Larger Than Any 1 Day Stock Market Crash In U.S. History

We witnessed something truly historic happen on Friday.  The Dow Jones Industrial Average plummeted 530 points, and that followed a 358 point crash on Thursday.  When you add those two days together, the total two day stock market crash that we just witnessed comes to a grand total of 888 points, which is larger than any one day stock market crash in U.S. history.  It is also interesting to note that this 888 point crash comes in the 8th month of our calendar.  Perhaps that is just a coincidence, and perhaps it is not.  It just struck me as being […]

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We Have Already Witnessed The First 1300 Points Of The Stock Market Crash Of 2015

What has been happening on Wall Street the past few days has been nothing short of stunning.  On Thursday, the Dow Jones Industrial Average plummeted 358 points.  It was the largest single day decline in a year and a half, and investors are starting to panic.  Overall, the Dow is now down more than 1300 points from the peak of the market.  Just yesterday, I wrote about all of the experts that are warning about a stock market crash in 2015, and after today I am sure that a lot more people will start jumping on the bandwagon.  In particular, […]

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