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https://ca.news.yahoo.com/watch-u-recession-zero-interest-rates-china-next-123111939--sector.html

"The cumulative probability of U.S. recession reaches 65 percent next year," Citi's rates strategists wrote in their 2016 outlook published late on Tuesday. "Curve inversion will likely come more quickly than the consensus thinks."

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From Investopedia...

 

 

While experts question whether or not an inverted yield curve remains a strong indicator of pending economic recession, keep in mind that history is littered with portfolios that were devastated when investors blindly followed predictions about how "it's different this time." Most recently, shortsighted equity investors spouting this mantra participated in the "tech wreck," snapping up shares in tech companies at inflated prices even though these firms had no hope of ever making a profit.

Read more: The Impact Of An Inverted Yield Curve http://www.investopedia.com/articles/basics/06/invertedyieldcurve.asp#ixzz3tCE7NZV6 
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Also from Investopieda:

Historically, inversions of the yield curve have preceded many of the U.S. recessions. Due to this historical correlation, the yield curve is often seen as an accurate forecast of the turning points of the business cycle. A recent example is when the U.S. Treasury yield curve inverted in 2000 just before the U.S. equity markets collapsed. An inverse yield curve predicts lower interest rates in the future as longer-term bonds are being demanded, sending the yields down.

Read more: Inverted Yield Curve Definition | Investopedia http://www.investopedia.com/terms/i/invertedyieldcurve.asp#ixzz3tCNUmsTD

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  • 1 month later...

This mess is just going to keep getting worse isn't it.  

 

"sell everything"... "brace for a 'cataclysmic year'”

http://www.telegraph.co.uk/finance/economics/12093807/RBS-cries-sell-everything-as-deflationary-crisis-nears.html

 

$1 trillion, just gone

http://money.cnn.com/2016/01/12/investing/stocks-lose-1-trillion-2016/index.html

 

"time to stash cash"

http://www.cnbc.com/2016/01/12/its-time-to-stash-cash-portfolio-manager.html

Edited by MetropolisLakeOutfitters
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$1 Trillion gone---not really gone, just left the market into someone else's pocket.

JJK

Edited by JJKIZAK
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DJIA is being projected to lose 80% for 2016?

Not likely.

 

 

It's all noise.  Stay diversified and keep saving/investing.

Diversify, invest slowly, and dollar cost average.

Don't just jump in thinking the bottom is here, average your purchases over time.

Think long term and you'll do fine.

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The economic markets are simply in reset mode after years of FED over-spending & false support.

Profit taking isn't bad.  Interest rates have been driven way too low, and the dollar has been held purposely weak for way too long.  It is time for a reality check - whatever that may be.  Only time will tell, unless the masses are led to believe another line of BS, and support it.  Cash is king here, and debt is viewed as "the man's" meat hook right into your pocketbook.

Caution advised.

Edited by Arrow#422
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The DJIA is "only" down 521 points right now.

What are you BUYING, and if not, should you be?

 

When the last bubble burst, nearly any dart thrown (money invested after the fallout) eventually made 30-50%.

Edited by Arrow#422
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It's all noise.

 

I'm not sure it is.  Look at my second sentence in this thread: "What is going on with this economy?  I could have told you just from the boots on the ground report that something is up"

 

Something is up.  I have sold utility trailers for 15 years and have memorized the seasonal peaks, but something is off.  People aren't doing as well for whatever reason.  I don't get as many calls and don't get many people willing to drive long distances, even though gas is at stupid low prices.  It seems that other dealers have been experiencing about the same thing or else I'd think it was just me.  I don't know if the official economic reports are being doctored or what but we're not exactly in a big boom it seems.  When I try to look into it, all I find is grave economic warnings.  

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Old News Dept

 

The US economy is 70% consumer spending and 30% government spending. If you take that as true, then:

 

1. Consumer spending can't grow because wages are shrinking in real dollars

2. Government spending can't grow because deficit hawks won't permit it. 

3. If there is no growth, the stock market will fall until growth is restored.

 

It's just that simple. The stock market "prices in future growth" - that's why there is a P/E ratio. When growth is good, the P/E ratio grows to a high multiple. When growth flattens, the P/E ratio falls because dividends (The "E" in the ratio) are not rising. 

 

When the stock market begins to unwind, a DEFLATION takes hold. That's a flat spin to the bottom.

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