In Your Face “Black Swan!”

By bill Holter – Re-Blogged From http://www.Gold-Eagle.com

What happened last Wednesday deserves another look because I believe it marked a huge pivot point and very few are even talking about it.  Last Wednesday the Fed raised rates one quarter of a point but that was not the big story.  The big story was the about face the U.S. did geopolitically!

We saw markets around the world convulse on Thursday and Friday.  All attention has focused on the Fed rate hike which no doubt was a contributor.  How wise was it for the Fed to tighten credit conditions on a system already struggling and burdened with debt?  There is no arguing we have systemically moved from the 2008 crisis which is now widely understood as a “credit event”, into an even more highly levered situation.  The recovery that never was is now met with a central bank’s policy error.

I believe the “tell” on Friday was a weak dollar.  Much of what happened in the markets could have been expected as reaction to the Fed tightening credit conditions …but not a weak dollar.  The meeting between Mr. Lavrov, Mr. Putin and John Kerry far overrides anything the Fed could have done or said in my opinion.  The foreign policy about face where Mr. Assad no longer “needs to go” and Turkey being ordered to withdraw troops from northern Iraq was astonishing!  These statements were followed by Mr. Putin establishing a no fly zone over northern Syria.  In another twist, Turkey still maintains Mr. Assad must go and they are refusing to withdraw troops from Iraq http://www.zerohedge.com/news/2015-12-19/turkey-blasts-breakthrough-un-resolution-syria-it-lacks-perspective-assad-must-go .  When in your lifetime have you ever seen anything like this?  An “ally”, ANY ALLY publicly denying U.S. will?  We all saw an IN YOUR FACE BLACK SWAN but few have recognized it yet!

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‘Black Swan’ Taleb Warns “Calm Before The Storm”

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

– Is the apparent calm of the West a signal of latent instability?
– Increasing symptoms of instability in West as proposed by Nassim Taleb
– Wider public and mainstream press believe “experts” have everything under control
– Black Swan approaches and we may be experiencing “the calm before the storm”

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This Financial “Seismograph” Signals A Monetary Earthquake

Re-Blogged From http://secularinvestor.com

Stock markets in the U.S. are trading approximately 2% from their all-time highs, the German DAX has slightly retraced from its all-time highs, the Nikkei index in Japan has almost surpassed its 2000 highs in recent days, the Shanghai stock index used to be a laggard but is making up at an incredible pace (currently trading at 7-year highs). Indeed, it feels like nothing can go wrong.

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To Infinity and Beyond? Don’t Be Surprised If the U.S. Stock Market Cracks.

By Vasily Katsenelson – Re-Blogged From http://www.imausa.com

(I wrote this article for Institutional Investor Magazine awhile back, but it is still as relevant today as it was when I wrote it)

In 1986 Jeremy Grantham — an investment legend and co-founder of Boston-based asset manager GMO — started to warn his firm’s clients about, and even created an investment product to protect them from what he believed would be, the eventual bursting of the Japanese stock bubble. We all know how that story ended: In 1990 the Japanese market crashed, stocks declined more than 70 percent from their peak, and the Japanese economy slipped into a 25-year coma.

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