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The Bubble Deflates – And Crash Risk Rises
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
acting-man.com / Pater Tenebrarum / February 8, 2016
A Harrowing Friday – Momentum Stocks Continue to Break Down
The release of Friday’s payrolls report was the worst of all worlds for the US stock market. This typically happens in bear markets: suddenly fundamental data that wouldn’t have bothered anyone a few months ago are seen as a huge problem. Why was it seen as problematic?
The report somehow managed to be weak and strong at the same time – it showed weakness in payrolls growth, but the entirely artificial U3 unemployment rate, which is distorted by the fact that a huge number of unemployed are no longer counted as unemployed, but rather as simply having “left the labor force”, fell below 5% at the same time.
This fact should keep the labor market-focused Keynesian leadership of the Fed (primarily Ms. Yellen herself) from moving very swiftly toward a loosening stance – although everybody knows this is what will eventually happen anyway. Does it actually matter? Not in reality, but it certainly matters to an already frayed market psychology.
If there is one chart that describes best that the US stock market has a really big problem now, it is probably this one:
The post The Bubble Deflates – And Crash Risk Rises appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/08/the-bubble-deflates-and-crash-risk-rises/
