Today, it was reported that GDP growth was 50% lower than Wall Street had forecasted. At school, that would give you a big “F.” Once again, economists are busy wiping the egg off their faces. This seems to be a continuing process.
Our subscribers knew for the past 9 months that the US economy is on the way to recession.
Today’s GDP growth number was a 1.2% annualized rate in the second quarter. The median forecast of economists (Bloomberg) was for 2.5% second-quarter
The virtually unlimited level of credit creation by the major central banks over the past seven years has created conditions never seen before in the history of mankind. Yields on government bonds in many countries are now below zero, which we have never seen to this extent in history. In Europe, over $11 TRILLION of government bonds now have a yield below zero. That means the bond owner, in effect the lender, pays interest to the borrower.
This is the ultimate absurdity. How can anyone believe that this won’t eventually result in an unstoppable crisis?
In 1981, we wrote in our Wellington Letter that our analysis showed a 20 year bear market was ahead for Gold. That call was right on target, but at the time, no one believed that Gold would decline for 20 years.
Furthermore, we wrote in 1981 that after a 20-year bear market, Gold would go into a 30 year bull market. In 1981 that seemed outlandish. We even wrote at the time, “We have no idea
Bert Dohmen Says…
A Brexit Rally Will Lead to a Bull Trap
The forecasts of the Federal Reserve have always been amazingly inaccurate, for at least the past four decades that I have been watching the Fed.
In fact, for 38 years at my firm, Dohmen Capital, we have used the Fed as an excellent contrarian indicator at important turning points, especially as the economy goes into recession. When the Fed Chair tells Congress “there is no recession in sight,” it confirmed our work that either the recession was immediately ahead, or had already started.
From Dohmen Capital comes the just released Special Report: The China Crisis Is Here. This report is a follow up on Bert Dohmen’s prescient third book released in 2013, “The Coming China Crisis.”
Now you can find out the truth about China’s massive economic and political issues, which are causing a crisis in China that will spread like a tsunami, affecting the financial markets around the world.
TINA is not a girl, it stands for “There Is No Alternative” to stock investments.
This is the latest obfuscation by Wall Street. It’s the typical illusion deliberately created at market tops to keep naïve money managers from selling, because that would interfere with the selling and shorting by the large Wall Street firms.
Wall Street never mentions that stocks are vastly overvalued. The smartest money managers say they can’t find anything to buy. They never tell you that corporate earnings have now had an earnings decline for five consecutive quarters.