{"id":452754,"date":"2017-03-10T23:53:24","date_gmt":"2017-03-10T23:53:24","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=452754"},"modified":"2017-03-10T23:53:24","modified_gmt":"2017-03-10T23:53:24","slug":"the-markets-scariest-warning-sign-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=452754","title":{"rendered":"The Market\u2019s Scariest Warning Sign"},"content":{"rendered":"
<\/a><\/div>\n

By Brian Maher<\/a><\/span> <\/p>\n

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This post The Market’s Scariest Warning Sign appeared first on Daily Reckoning.<\/p>\n

A strange moon rises over Wall Street\u2026<\/p>\n

The Fed’s about to raise interest rates \u2014 for only the third time in 10 years. More seem likely\u2026<\/p>\n

A potentially crushing debt ceiling crisis is days away. The president’s a human volcano. Upcoming elections in France and Holland menace the European Union. North Korea’s lighting off rockets\u2026<\/p>\n

And yet\u2026 and yet\u2026 market volatility hovers at record lows.<\/p>\n

Odd. But there you are.<\/p>\n

The VIX index \u2014 Wall Street’s \u201cfear gauge\u201d \u2014 nears its lowest point in a decade \u2014 11.6. It peaked at 60 in the teeth of the 2008 crisis. Historically, 20’s about par.<\/p>\n

\u201cWe haven’t seen levels this low since early 2007,\u201d notes Andy Crowder of Wyatt Investment Research, a slight crack in his voice.<\/p>\n

Early 2007 \u2014 the still before the whirlwind.<\/p>\n

\u201cSo profound is the market’s peace that a debate is raging over whether it’s healthy,\u201d says Bloomberg.<\/p>\n

Volatility’s so low it’s even got the Fed \u2014 the Fed! \u2014 arching an eyebrow. Per Bloomberg, some in the ranks have \u201cexpressed concern that the low level of implied volatility in equity markets appeared inconsistent with the considerable uncertainty attending the outlook.\u201d<\/p>\n

Has the market reached \u201cpeak complacency\u201d?<\/p>\n

The S&P’s 250% advance since 2009 has eclipsed any bull market at the eight-year mark, Bloomberg notes. It’s spiked 11% Since Trump’s election alone.<\/p>\n

It seems the market’s guzzling orange Kool-Aid. Trump’s opening the purse for infrastructure and defense. He’ll slash taxes\u2026 gut regulations\u2026 let American business off its leash.<\/p>\n

Just so. But if that’s the reason, David Stockman says have another guess. The debt ceiling deadline falls this coming Wednesday, March 15 \u2014 the ides of March.<\/p>\n

And David says the looming debt ceiling crisis and unbridgeable partisan divide will nix tax reform and strangle any spending spree in the crib:<\/p>\n

I see a huge mess, bloodbath, fiscal stalemate in Washington that will remove any of the stimulus that any of the traders are expecting from infrastructure and big tax cuts and all the rest\u2026 Wall Street is totally misreading Washington. It’s pricing in a fantasy about a Trump stimulus that simply isn’t going to happen.<\/p>\n

David’s conclusion: The coming debt crisis will yield a financial crash of \u201cunbelievable proportions.\u201d But the robo-machines are missing it:<\/p>\n

\u201cI am seeing reality; the machines [on Wall Street] are simply trading on sound bites, tweets and hourly sentiments. This is\u2026 the biggest sucker’s rally in history. There is going to be a huge surprise very soon.\u201d<\/p>\n

(How soon? And how can you prepare while there’s time?<\/p>\n

But David’s not the only analyst yanking the alarm\u2026<\/p>\n

The bull market celebrated its eighth birthday yesterday. The second-longest bull market en histoire.<\/p>\n

And Sam Stovall, CFRA’s chief investment strategist, warns that historically, the longest bull markets \u201cwent out with a bang and not a whimper. Like an incandescent light bulb, they tend to glow brightest just before they go out.\u201d<\/p>\n

And after eight years, the lights are burning brighter than ever.<\/p>\n

Those same bright lights also have Francis Gannon, co-chief investment \u2026read more<\/a> <\/p>\n

Source:: Daily Reckoning feed<\/a><\/p>\n

The post <\/a>The Market’s Scariest Warning Sign<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Brian Maher This post The Market’s Scariest Warning Sign appeared first on Daily Reckoning. A strange moon rises over Wall Street\u2026 The Fed’s about to raise interest rates \u2014 for only the third time in 10 years. More seem likely\u2026 A potentially crushing debt ceiling crisis is days away. The president’s a human volcano. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/452754"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=452754"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/452754\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=452754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=452754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=452754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}