Today on the Janssen Report:
I have been alluding to a stock market crash over the past years, sort of expecting it to happen before the end of this decade. Although I have always stated that one cannot be sure about the timing of such an event, it does seem to take a long time for it to occur. Well, it’s not 2020 yet…
That said, I continue to stick with the fundamentals: they are much too weak to support any kind of overvaluation to the extent that we’ve been seeing in the current equity markets.
In December 2018 we saw a pretty steep correction, but this was quickly negated by recent upward movements. Yet, the Federal Reserve is contemplating pausing its Quantitative Tightening (QT) and the concomitant rate hikes or even reversing its course altogether (rate cuts again??).
Watch today’s report to see some of the coverage in the media on the Fed’s course, the behavior of the stock market and why I think the economic fundamentals will ultimately bring the market to its knees.
Sources / Links:
- www.thejanssenreport.net/?s=market
- www.zerohedge.com/news/2019-02-19/euphoric-market-has-best-price-reaction-negative-eps-surprises-nine-years
- www.zerohedge.com/news/2019-02-19/market-juggernaut-stock-breadth-hits-all-time-high
- www.bloomberg.com/opinion/articles/2019-02-19/federal-reserve-s-first-do-no-harm-policy-is-harmful
- www.bloomberg.com/news/articles/2019-02-19/mester-supports-ending-fed-s-balance-sheet-unwind-this-year
- www.zerohedge.com/news/2019-02-18/doug-noland-central-banks-are-hostages-market-bubbles
- www.bloomberg.com/news/articles/2019-02-19/the-epic-clash-between-bonds-and-stocks-is-coming-back?srnd=markets-vp
- northmantrader.com/2019/02/17/caution-2/
- goldsilver.com/blog/alert-mymarket-fragility-index-is-off-the-charts/
- www.zerohedge.com/news/2019-02-20/goldman-march-fed-will-announce-qt-will-end-q3
- www.forbes.com/sites/investor/2019/02/19/qt-is-dead-federal-reserve-buckles-massive-federal-reserve-balance-sheet-the-new-normal/#535fd8567710
- www.zerohedge.com/news/2019-02-20/fed-minutes-downside-risks-increased-worried-balance-sheet-runoff-hit-stocks
- www.zerohedge.com/news/2019-02-20/powell-call-what-do-we-need-see-fed-hike-again
- www.zerohedge.com/news/2019-02-21/first-time-2000-most-assets-are-overbought
- www.zerohedge.com/news/2019-02-20/gartman-time-buying-stocks-past