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Global Financial Collapse Is Coming 2013


WALTER ZIMMERMAN: Every Indicator I Follow Shows The Market Is Going To Tank, And There Will Be A New Financial Crisis

scary cloudy red sky
 
The stock market is within points of hitting an all-time high.
However, there is no shortage experts who are waving red flags.  Earnings expectations have been falling, profit margins appear to be unsustainably high, and sentiment is so high that it seems investors are being complacent about the risks.
"Every reliable technical tool is warning of major peaking action," said Walter Zimmerman, the senior technical analyst at United-ICAP. "This includes sentiment, momentum, classical chart patterns, and Elliott wave analysis.
"Most of the rally in the stock market since 2009 can be chalked up to the Federal Reserve’s attempt to create a ‘wealth effect’ through higher stock market prices. This only exacerbates the downside risk. Why? The stock market no is longer a lead indicator for the economy. It is instead reflecting  Fed manipulation. Pushing the stock market higher while the real economy languishes has resulted in another bubble.
"The next leg down will not be a partial correction of the advance since the 2009 lows. It will be another major financial crisis. The worst is yet to come."
Zimmerman sent us a brief presentation laying out his thesis.

The rally is slowing in a very bearish way.

The rally is slowing in a very bearish way.
Walter Zimmerman, ICAP

Sentiment is far too positive, which means it can quickly turn.

Sentiment is far too positive, which means it can quickly turn.
Walter Zimmerman, ICAP
Walter Zimmerman, ICAP

The last time the Nasdaq hit this level, it soon fell.

The last time the Nasdaq hit this level, it soon fell.
Walter Zimmerman, ICAP

Priced in gold, the S&P 500 has been underperforming. This suggest purchasing power is falling.

Priced in gold, the S&P 500 has been underperforming. This suggest purchasing power is falling.
Walter Zimmerman, ICAP

The stock market has been driven by inflation, not real returns.

The stock market has been driven by inflation, not real returns.
Walter Zimmerman, ICAP

The wealth effect is an illusion.

The wealth effect is an illusion.
Walter Zimmerman, ICAP

Real incomes are way down.

Real incomes are way down.
Walter Zimmerman, ICAP

Real retail sales are nowhere near pre-crisis levels.

Real retail sales are nowhere near pre-crisis levels.
Walter Zimmerman, ICAP

Industrial production appears to be up.

Industrial production appears to be up.
Walter Zimmerman, ICAP

But real industrial production is nowhere near pre-crisis levels.

But real industrial production is nowhere near pre-crisis levels.
Walter Zimmerman, ICAP

And consumer sentiment has only continued to trend lower.

And consumer sentiment has only continued to trend lower.
Walter Zimmerman, ICAP

Those aren't the only reasons why you should be worried.

 

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