Faber, Cramer, Roubini, Celente, Rule: Unthinkable Market Madness Unfolding
by Brittany Stepniak, Outsider Club featured image/Mr. Peak Crakcers – ZenGardner Surely, by now, you’ve caught on to the notion that the game is rigged. That’s kinda what we’re all about here at Outsider Club: exposing you guys to the shenanigans and cronyism going on behind the scenes so you aren’t one of the many Americans dragged down by the Establishment’s evil games. But instead of throwing in the towel, we’re here to hunt with you… searching for investments with real global value in the year ahead. …and warning you when peril is approaching. Lately, our financial experts here at OC have been traveling and catching up with some of the financial elite to get a first-hand look at emerging trends of 2015 so our readers can start capitalizing early (i.e. NOW). And — if you read Nick’s piece yesterday — it sounds like last year’s bull market run is about to turn into this year’s precious metals’ bull market run. Experts across the globe tend to concur. Bad News First When someone like Jim Cramer cites a red flag, people generally perk up to listen. And just yesterday, Mr. Cramer told CNBC he was seeing red flags “all over the place.” Cramer is especially concerned with what the VIX is saying about the weeks and months ahead. Turning to Mark Sebastian, technician and founder of OptionPit.com, Cramer concluded that the VIX breaking out above $20 very clearly indicates that investors at large are anticipating a higher than average amount of volatility. So regardless of a seemingly robust stock market in 2014 (high because corporations are the biggest purchasers of stock), ordinary investors like you and me should be getting concerned about the global turmoil unfolding as you read this. The S&P is finally beginning to reflect these sentiments. In 2014, the S&P 500 couldn’t seem to stay down for four straight days. Now it can’t seem to boast three positive days in 2015… Both Celente and Roubini have recently interviewed with various sources indicating how absurd it is that we’re seeing so many negative interest rates in Europe. Deflationary concerns are legit. The crisis is far from over. When the globe’s financial leaders keep resorting to the same failed attempts at economic stimulus and revival (quantitative easing), it’s the public that suffers at the expense of the banksters’ elaborate Ponzi schemes. Both the European Central Bank and the Fed are acutely aware that quantitative easing doesn’t work. But that’s not stopping Europe from giving it a go. Once that gun goes off, the only natural response will be for investors to run for gold and silver. It’s a tale as old as time (or at least as old as the system of fiat currency). Smart investors will be sure to investigate some gold/silver mining and other gold-related businesses that are actually outperforming bullion itself. Currency Woes in 2015 In the shot heard around the world today, European Central Bank (ECB) took a page out of the Federal Reserve’s play-book. As expected, President Mario Draghi announced the launch of an open-ended, expanded monthly 60 billion euro ($70 billion) private and public bond-buying program. CNBC reports:
The long-anticipated introduction of euro zone government bond purchases, which could amount to as much as a trillion euros, will mean the ECB will join the U.S. Federal Reserve, Bank of England and Bank of Japan in launching a quantitative easing (QE) scheme. The program will be open-ended, lasting until at least 2016, Draghi told reporters at his regular media conference on Thursday, and will start in March this year. The hope is that it will boost the region’s painfully low inflation rate, which came in at an annual minus 0.2 percent in December.
In the aftermath of this decision, media sources can’t help but to refer to Draghi as “The Wolf of Frankfurt.” The euro is plummeting in this wake, falling to 11-year lows against the dollar. Well some investors might feel temporarily gleeful, this is no “save the eurozone defining moment.” Instead, as Ryan Littlestone at Forexlive said, it’s more of a message “that they are still firefighting and have no idea when they’ll get it under control. That doesn’t fill me with confidence about the fortunes of QE and the future of Europe.” Me either Ryan, me either. The biggest concern is the question of what these global trends of quantitative easing will do to our economy and markets at large. I like the way one German explains it: “Imagine there is free beer for everybody and everybody is drunk. Then someone goes and buys some more cases of beer, but nobody cares for it anymore.” Gold expert and CEO of Sprott US Holdings Inc. Rick Rule adds his two cents regarding what this “counterfeit currency” will mean for the remainder of 2015: Continue Reading>>>