A systematic Stock Market crash may be imminent. Market valuation modeling on market behavior during the bubble phase and the inherent instability endogenously created by the bubble, are all pointing to this fact. We have essentially been on borrowed time, and short of exogenous factors influencing the outcome such as major interdiction by central bank policy, the convergence of factors that point to a severe market crash are now more evident and obvious than those that led into the fall of 2008.
This crash will prospectively put 2001, 2008 and August 24th to grievous shame in comparison. It seems the ripples from the equity markets being down 9% from the highs from earlier in the year, and the Dow Jones Industrial Index being down almost 2000 points from the May 19 close of 18,312, are dangerously pairing with the rampant influx of derivative based capital, through the various centralized quantitative easing measures by central banks over the last 7 years, to create quite the Tsunami of financial turbulence. Buckle in folks, this rides going to be a rough one!
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