Ten Clues that Wall Street is About to Crash Again
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The Dow Jones Industrial Average ($INDU) is 7% off its end April high, and has broken decisively down through its 50 Day Moving Average.
The Fed and its supporters in the economist brotherhood (yes they are mostly men) have described this as a ‘soft patch’.
The markets are not so sure, and there are a confluence of factors suggesting the Dow and many other global stock markets are about to go bump in the night …
The Dow Jones Industrial Average ($INDU) is 7% off its end April high, and has broken decisively down through its 50 Day Moving Average.
The Fed and its supporters in the economist brotherhood (yes they are mostly men) have described this as a ‘soft patch’.
The markets are not so sure, and there are a confluence of factors suggesting the Dow and many other global stock markets are about to go bump in the night …
Graph: Stock Charts
2011 is creepily shaping up to look like 2008. Here are the 10 clues Wall Street is about to crash again:
- Major banks are planning lay-offs.
- Bad news reported day in and day out, lowering consumer confidence.
- OPEC annouces oil production level will not be raised, which also means oil prices are likely to go up this week.
- Pimco’s co-chief investment officer, Bill Gross, is telling investors that for the Fed it will “be difficult to initiate a QE3,” but without artificial stimulation the U.S. economy may start really struggling again.
- Moody’s warns it may downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.
- Standard & Poor’s changs its outlook on US.government debt from “stable” to “negative” and warns U.S. could lose its AAA rating – and China has been dumping short-term U.S. government debt.
- US consumer confidence is lower than it was back in September 2008 when Lehman Brothers collapsed.
- Mike Riddell, of M&G Investments in London, tells CNBC, “It seems that almost every bit of data about the health of the US economy has disappointed expectations recently.”
- Nouriel Roubini warns about the next financial crisis.
- 48% of Americans believe that it is either “very likely” or “somewhat likely” that the United States will experience a “depression” within the next 12 months.
Do you think we’re in store for another financial crisis? Tell us what you think and find out what others are thinking on EconomyWatch Consumer Confidence Index.
