Bubbles are Bursting: Oil, China, Global Stock Markets, and now Trump?

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Donald Trump’s rise in the Republican polls was meteoric. But at the Iowa Caucus, he was handed a defeat and came in second. Close only counts in the game of “horseshoes.”

World-wide, all the bubbles produced over the past seven years are bursting. Why should politics be exempt?

The oil bubble was the first to implode. The high in 2008 was $149, and then it plunged to $38.

In 2015, oil hit about $112, and then it plunged below $30 this year.

We see oil on its way to lower prices in 2016, which could mean tumultuous markets ahead! But it also means big profits for smart, active investors.

Oil etf - 2-3-2016

Socio-economic research shows that hero-worship turns to hate when the cycles change from bull to bear. That may also be true in politics and the stock market. Watch out, Donald.

What other “bubbles” have burst recently and what effects will they have on the stock market?

Bank stocks were recommended by almost every analyst the past 12 months, except us. But they were dumped by the big, smart money for reasons we wrote about in our latest WELLINGTON LETTER.

Airlines, car makers, and other sectors will now be dumped as well. Technical analysis gives us the warnings for the specific sectors.

China’s stock market bubble in 2015 was enormous. It was a 155% gain in twelve months to the June 2015 high. So far, a huge $6 TRILLION of wealth has been wiped out, which is almost 60% of the annual GDP. We predicted China’s coming crisis 3 years ago!

The APPLE stock bubble has also imploded. It was the most loved stock in the world at the high of $134 last year. Now it is down over 30%.

Sentiment on Apple is turning, from great love to criticism. We have been warning of the important Apple top for one year in our many articles and emails. The signs were there, but our warnings were laughed at. The stock buybacks by Apple helped to disguise the big selling by knowledgeable investment firms.

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Yes, all bubbles eventually implode. But that brings great opportunities on the way down.

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You just need the most experienced guidance. Our founder, Bert Dohmen, has over 40 years of success in calling the major market turns, using advanced technical analysis.

That’s the only discipline that can catch major turning points when they occur, not one year later when it is too late.

Read what Bert Dohmen, rated the #1 STOCK MARKET TIMER by Timers Digest, has written now about a coming recession and bear market. It may save and make you a fortune. He says that the signals we’re seeing are crystal clear.

If you want the most experienced guidance during the coming incredible times, and make money instead of losing your wealth, consider subscribing to our award-winning WELLINGTON LETTER.

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P.S. We assure you the amount and quality of research, market & economic analysis, along with the recommendations provided in each issue cannot be found anywhere else for such a competitive price. We will be happy to welcome you to our growing family of subscribers. Many have been with us for over 30 years. In our industry, that’s probably a record.

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