“The Worst Is Yet To Come Next Year”

When talking heads on mainstream news networks are using phrases such as “the worst is yet to come next year”, that is a clear indication that a new financial crisis has arrived.  And that is an extremely bold statement to make considering that this is already the worst quarter for the stock market in 10 years, this is the worst December for stock prices since 1931, and we just experienced the worst Christmas Eve that Wall Street has ever seen.  So when Mark Jolley made the following statement during a recent guest appearance on CNBC, it definitely raised some eyebrows…

“I would love to be more optimistic but i just don’t see too many positives out there. I think the worst is yet to come next year, we’re still in the first half of a global equity bear market with more to come next year,” Mark Jolley, global strategist at CCB International Securities, told CNBC’s “Squawk Box.”

At this point last year, nobody on Wall Street was talking like this.

In fact, nobody was talking like this even four or five months ago.

But after three extremely painful months the outlook has completely changed, and a lot of market participants are really starting to freak out.

And this is not just happening in the United States.  The truth is that most most markets around the world started to fall well before U.S. markets did, and at this point almost all of the big global indexes are in a bear market

Bear markets — typically defined as 20 percent or more off a recent peak — are threatening investors worldwide. In the U.S., the Nasdaq Composite closed in a bear market on Friday and the S&P 500 entered one on Monday. Globally, Germany’s DAX, China’s Shanghai Composite and Japan’s Nikkei have also entered bear market levels.

This is the first global bear market that we have seen in a decade, and if central banks are going to try to stop the bleeding they will need to move very quickly.

But the Federal Reserve has already indicated that they do not plan to intervene.  In fact, they just told everyone that they plan to keep raising interest rates.

That is completely insane, but since they aren’t accountable to us they can literally do whatever they want.

So if the central banks don’t step in, who is going to come riding to the rescue?

Individual national governments could try to stimulate economic activity by spending more money, but most of them are already drowning in debt.

Just look at the mess that the U.S. government has created.  Since the beginning of the last financial crisis, we have been adding more than a trillion dollars a year to the national debt.  And over the last 12 months our debt problems have actually accelerated.  Between December 25th, 2017 and December 25th, 2018 we added almost 1.4 trillion dollars to the national debt.  The following comes from CNS News

The federal government has added another $1,370,760,684,441.54 to the debt since last December 25, according to numbers published by the U.S. Treasury.

On Dec. 25, 2017, the federal debt was 20,492,874,492,282.58, according to the Treasury.

According to the latest numbers published by the Treasury, which show where the debt stood on Dec. 20, 2018, the federal debt was $21,863,635,176,724.12.

So the reality of the matter is that there is simply no room for more “stimulus spending”, because we have already been spending money like drunken sailors that think that they are likely to die tomorrow.

Right now the government is shut down as President Trump and Chuck Schumer square off over 5 billion dollars in border wall funding.  But nobody on Capitol Hill is even talking much about the 1.37 trillion dollars that we just added to the national debt, and that is really what everybody should be focusing on.

We are literally committing national suicide.  No matter what happens with border wall funding, the U.S. will continue to steamroll toward financial oblivion unless something is done about this horrific debt that we are accumulating.

As I wrap up this article, I would like to share something that Austin Murphy wrote that really struck a chord with me.  Over the course of a 33 year career in journalism, Murphy interviewed five presidents and wrote thousands of articles for Sports Illustrated.  But now he is delivering packages for Amazon

Let’s face it, when you’re a college-educated 57-year-old slinging parcels for a living, something in your life has not gone according to plan. That said, my moments of chagrin are far outnumbered by the upsides of the job, which include windfall connections with grateful strangers. There’s a certain novelty, after decades at a legacy media company—Time Inc.—in playing for the team that’s winning big, that’s not considered a dinosaur, even if that team is paying me $17 an hour (plus OT!). It’s been healthy for me, a fair-haired Anglo-Saxon with a Roman numeral in my name (John Austin Murphy III), to be a minority in my workplace, and in some of the neighborhoods where I deliver. As Amazon reaches maximum ubiquity in our lives (“Alexa, play Led Zeppelin”), as online shopping turns malls into mausoleums, it’s been illuminating to see exactly how a package makes the final leg of its journey.

Like Murphy, America’s future is going to be far less bright than its past if we don’t get things turned around, and right now there is absolutely no indication that this is going to happen.

Our national problems are multiplying, the conditions for a perfect storm are rapidly coming together, and pessimism is quickly growing all across America.

Mark Jolley believes that “the worst is yet to come next year”, and in the end he may turn out to be exactly correct.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

 

The Worst Christmas Eve For The Stock Market EVER – The Dow Has Now Fallen More Than 5000 Points From The Peak

This is definitely not the gift that investors wanted for Christmas.  On Monday, the Dow Jones Industrial Average plunged 653 points as panic swept through Wall Street like wildfire.  That represented a 2.9 percent daily decline, and that made it the worst Christmas Eve for the Dow ever recorded.  Incredibly, the previous record had lasted for exactly 100 years.  Normally the day before Christmas is a very, very quiet day on Wall Street, but right now there are no “normal” days for the financial markets.  If you go back to early October, the Dow Jones Industrial Average hit an all-time record high of 26,951.81, and on Monday the Dow closed at just 21,792.20.  That means that the Dow has now plummeted more than 5,000 points in less than three months, and that is a major milestone.

The S&P 500 also crossed a major milestone on Monday when it entered bear market territory

The term on Wall Street is synonymous with serious, long-lasting declines in stock markets. In numeric terms, a bear market is a 20 percent or more drop from a recent peak.

The S&P 500 hit that milestone on Monday, dropping 20 percent from its 52-week high. Markets have stumbled through what is usually one of their best months of the year, with indexes on track for their worst December performances since the Great Depression in 1931.

What this means is that the longest bull market in all of U.S. history is officially dead.

And there is still about a week left in the month.  If things continue to unravel, this could ultimately turn out to be the worst December that the stock market has ever experienced.

Now that a bear market has begun, it is likely to stick around for a while.  Just consider these numbers

Since World War II, bear markets on average have fallen 30.4 percent and have lasted 13 months, according to analysis at Goldman Sachs and CNBC. When that milestone has been hit, it took stocks an average of 21.9 months to recover.

Of course all of the “experts” consulted by the mainstream media are going to assume that there will eventually be a recovery.

But could it be possible that this is the beginning of the “big crash” from which we will never recover?

Without a doubt, the elements for a perfect storm have been coming together for a long time.  We are witnessing great political shaking, our relationships with both Russia and China are rapidly deteriorating, a trade war has begun, social decay is spreading through our society like cancer, and the crust of our planet is becoming increasingly unstable.  Now we can add economic and financial instability to the mix, and a scenario is emerging that is eerily similar to what I have been warning about for a very long time.

Even before the markets crashed on Monday, U.S. Treasury Secretary Steven Mnuchin had scheduled an emergency call with the “Plunge Protection Team”.  The following comes from Reuters

The Treasury said Mnuchin will convene a call on Monday with the president’s Working Group on Financial Markets, which includes Washington’s main stewards of the U.S. financial system and is sometimes referred to as the “Plunge Protection Team.”

The group, which was also convened in 2009 during the latter stage of the financial crisis, includes officials from the Federal Reserve as well as the Securities and Exchange Commission.

But instead of calming the markets, many were concerned that this would actually accelerate the panic on Wall Street

“Panic feeds panic, and this looks like panic in the administration,” said Diane Swonk, chief economist at Grant Thornton. “Suggesting you might know something that no one else is worried about creates more unease.”

And without a doubt, what we witnessed on Monday was sheer panic.

Consumer lending has already been tightening up over the past couple of months, and the chaos on Wall Street is almost certainly going to cause financial institutions to become even tighter with their money.

As credit conditions tighten, economic activity will slow down, and that will make the coming recession even more inevitable.

There is one more key data point that I would like to share with you all today.  Since 1960, there have only been 13 years when the stock market has declined for the year.  As Joe Zidle has noted, most of the time those declines occur “before or during a recession”…

“I think there’s a massive gap between sentiment and fundamentals” for the market, Blackstone investment strategist Joe Zidle said on CNBC’s “Squawk Box.”

“If the market closes down for the year, which looks likely … it will only be the 13th time that we’ve seen a full year decline since 1960,” Zidle said. Of those 13 full year declines in the past 58 years, seven occurred before or during a recession.

Now that the Dow Jones Industrial Average has fallen more than 5000 points, I think that we can safely say that this is a stock market crash.

But how bad will this stock market crash ultimately turn out to be?

If the Federal Reserve had rushed in with emergency measures at the first signs of trouble, they probably could have stabilized things.  But the longer they wait, the harder it is going to be to stop the process that has been set in motion.

The Bubble of All Bubbles is starting to burst, and unless we see dramatic central bank intervention soon it is likely that an unprecedented financial nightmare is ahead.

I hope that you are able to rest and relax with family and friends this time of the year, because it looks like what is ahead in 2019 is going to be extremely painful.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

This Was The Worst Week For The Stock Market Since The Financial Crisis Of 2008

Just when you thought that things couldn’t get any worse, they did.  During normal times, a Friday before Christmas is an extremely boring trading session, but these are not normal times.  On Friday, the Dow Jones Industrial Average was down another 414 points, and that brought the total drop for the week to 1,655 points.  The marketplace has been completely gripped by panic, and CNN’s Fear & Greed index has just registered the highest “fear rating” that we have ever seen.  I keep saying that we have not witnessed anything like this since the last financial crisis, and the numbers clearly back that assessment up.  In fact, this was the largest weekly percentage drop for the Dow since October 2008

The Dow just suffered its deepest weekly plunge since 2008 and the Nasdaq is officially in a bear market.

The miserable performance reflects deepening fears on Wall Street of an economic slowdown and overly-aggressive Federal Reserve.

Apprehension about a looming government shutdown and anxiety over higher interest rates were two of the major factors that pushed stocks down on Friday.

Normally trading volume is very, very light in the days leading up to Christmas, so what we just witnessed was extremely unusual.  Trading volume on Friday was “really heavy” with “more than 12 billion shares” changing hands…

In a bad sign on Friday, volume was really heavy. More than 12 billion shares changed hands on U.S. exchanges on Friday, the biggest volume in at least two years.

When I have warned about a “rush for the exits” in the past, this is the kind of thing that I am talking about.

Many investors were panic-selling on Friday because they wanted to be out of the market before things closed down for the holidays, and stock prices just kept getting hammered lower and lower.

For the week, the carnage was absolutely colossal.  The following is how CNBC summarized what happened…

  • The Dow lost 6.8 percent and 1,655 points on the week. It was its worst percentage drop since October 2008.
  • The Nasdaq lost 8.3 percent on the week and is now 22 percent below its record reached in August, a bear market.
  • The S&P 500 lost 7 percent for the week and is now down 17.8 percent from its record.
  • The Dow and S&P 500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 12 percent each this month.
  • Both the Dow and the S&P 500 are now in the red for 2018 by at least 9 percent.

It should also be noted that the number of stocks hitting 52-week lows right now is at historically high levels.  The following comes from Zero Hedge

Since 1984, there were only eight days when a bigger proportion of shares did so, according to Sundial Capital Research. Two of them were in 1987 — during the famous Black Monday crash, when the Dow Jones Industrial Average lost 23 percent in one day, and then again during the following session. The rest were in the aftermath of the collapse of Lehman Brothers in October and November 2008.

And it isn’t just stocks that are getting hammered.  In fact, at this point 93 percent of all asset classes are down for the year.

As so many have already said, 2018 is a year when literally nothing is working.

A similar thing is happening over in Europe, where stocks are on pace for their worst year since 2008.  We are watching a truly global meltdown take place, and trillions upon trillions of dollars of paper wealth is being washed away.

Of course not everybody has lost money.  Those that sold before this stock market crash started made out like bandits, and it is very interesting to note that over the past couple of months “the smart money” has been getting out of stocks at a pace that we have never seen before.

So what happens next?

For now, there will be a pause.  The stock market will be closed for the weekend, then it will open for half a day on Monday, and then it will be closed for Christmas on Tuesday.

Hopefully this “cooling off period” will help things to be much calmer by the time the markets open on Wednesday.

But even if things do calm down during the holidays, the truth is that this crisis is far from over.

The largest financial bubble in U.S. history is starting to burst, and a great deal of pain is ahead.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Worst Market Crash In A Decade: The Dow Has Fallen More Than 4000 Points As Stocks Rapidly Approach “The Capitulation Phase”

We have not seen anything like this since the financial crisis of 2008.  On Thursday the Dow Jones Industrial Average lost another 464 points, and over the last five trading sessions it has lost a total of more than 1,700 points.  CNN’s Fear & Greed index has swung all the way over to “extreme fear”, and there has only been one December in all of U.S. history that was worse for the stock market than this one.  But back at the very beginning of October, most of the experts never would have imagined that the year would end this way.  According to CNBC, the Dow Jones Industrial Average hit an all-time record high of 26,951.81 in early October, and investors were feeling really good about things at that point.  But on Thursday the index closed at just 22,859.60, and that means that the Dow has lost more than 4,000 points in less than three months.

All of the major trend lines have been shattered and all of the key support levels have been breached.  When analysts look at stock charts these days, all they are seeing is sell signal after sell signal.  One investment strategist told CNN that stocks are “quickly approaching the capitulation phase”

“Equity markets are quickly approaching the capitulation phase after having broken below critical support,” Sam Stovall, chief investment strategist at CFRA Research, told CNN Business.

According to Google, “capitulation” means “the action of surrendering or ceasing to resist an opponent or demand.”  In this case, the bulls are on the verge of surrendering to the bears, and if that happens we could see a tremendous amount of chaos break loose on Wall Street.

And the damage that has already been done has been extraordinary.  At this point firms listed on the S&P 500 have seen 2.39 trillion dollars in market cap wiped out, and a grand total of 16.7 trillion dollars in stock market wealth has been wiped out globally.

Many are pointing the blame for what is happening at the Federal Reserve.  Here is just one example

“We, too, were very vocal in recommending heavily that the Fed not hike yesterday,” said Julian Emanuel, chief equity strategist at BTIG.

“This is all about the speed of things,” Emanuel added. “The problem with ignoring the consequences of the balance sheet reduction really tells you that the Fed is not paying attention to that fact that financial markets correct much more rapidly on the downside than they do in bull markets to the upside.”

Even though the U.S. economy is slowing down substantially, and even though financial markets have already been crumbling, the Federal Reserve raised interest rates anyway.

And they knew that the financial markets would respond very negatively, so nothing that has happened the last couple of days is any sort of a surprise.

Of course it isn’t just stocks that are plunging.  Junk bonds just had their worst day since the Brexit vote, and that is an extremely ominous sign.  The following comes from Zero Hedge

High yield bond prices are collapsing, but it is clear that liquidity has evaporated as traders have sent high yield bond ETFs (more liquid) dramatically below its fair-value as they seek hedges ahead of their liquidation needs.

Today is HYG’s worst day since Brexit, with price crashing to lowest since April 2016…

As I have discussed before, the collapse of junk bonds was an early sign that stocks were going to totally crash in 2008, and now we see a very similar pattern playing out in 2018.

One of the signature moments from the crisis of 2008 was Jim Cramer’s famous rant about the Federal Reserve on CNBC, and he referenced that rant during remarks that he made on Thursday

For CNBC’s Jim Cramer , the worst part about the Federal Reserve’s latest interest rate hike is that the central bank’s chief, Jerome Powell, seemed to ignore what Cramer regards as “serious” weakness in the U.S. economy.

“I have a better read on the economy than the Fed and I know they’re not going to listen to me,” the “Mad Money” host said Thursday as the Dow Jones Industrial Average fell to a 14-month low . “I feel powerless, just like 2007 , when I ranted that the Fed needed to start easing aggressively in order to stave off a financial catastrophe.”

Does Jim Cramer really believe that he has a better grasp on how the U.S. economy is performing than the Federal Reserve does?

That is quite a bold statement, but based on what the Fed has been doing lately it is tempting to think that they are utterly clueless at this point.

But of course they aren’t clueless.  They know exactly what they are doing, and it isn’t about helping the American people.

Meanwhile, just like we saw in 2008, the mainstream media is trying to assure everybody that they should keep their money in the stock market.  In fact, CNN posted an article earlier today that encouraged people to put more money in because this latest downturn is a “buying opportunity”

“The market’s behaving like a two-year-old,” said David Kelly, chief global strategist at JPMorgan Funds. “The Federal Reserve is doing its job — and it’s doing it patiently and cautiously.”

Kelly said the recent market slide could present an entry point, especially for investors who previously felt stocks were too expensive.

You can believe that if you want, but there is a reason why corporate insiders were selling stocks at the fastest pace in 10 years just before the market started to crash.

This ridiculously absurd stock market bubble was not going to last forever, and now it is imploding at a speed that is absolutely breathtaking.

Hopefully things will stabilize a bit as we roll through the holidays, but there is no guarantee that will happen.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Stocks Are On Pace For Their Worst December Since The Great Depression – The Dow Is Now Down Over 3,300 Points From The Peak

U.S. stocks have not fallen this dramatically during the month of December since the Great Depression of the 1930s.  On Monday, the Dow Jones Industrial Average lost another 507 points, and it is now down more than 1,000 points from Thursday’s close.  This fresh downturn has pushed the Dow and the S&P 500 very firmly into correction territory, and the Russell 2000 is now officially in bear market territory.  The ferocity of this stock market crash is stunning many of the experts, and many investors are beginning to panic.  Back in early October, the Dow hit an all-time high of 26,951.81, but on Monday it closed at just 23,592.98.  That means that the Dow has now plunged more than 3,300 points from the peak of the market, and many believe that this stock crash is just getting started.

When it was first being reported that the stock market was on pace for the worst December since the Great Depression, I have to admit that I was skeptical.

But CNBC has the numbers to back up that claim…

Two benchmark U.S. stock indexes are careening toward a historically bad December.

Both the Dow Jones Industrial Average and the S&P 500 are on pace for their worst December performance since 1931, when stocks were battered during the Great Depression. The Dow and S&P 500 are down 7.8 percent and 7.6 percent this month, respectively.

And we still have two weeks remaining in December.  If things continue to unravel, we could potentially be talking about a truly historic month for Wall Street.

But we certainly don’t need things to get any worse, because the damage that has already been done has been immense.  The following numbers come from Zero Hedge

  • Dow -12.7% from highs (correction)
  • S&P -13.7% from highs (correction)
  • Nasdaq Composite -17.3% from highs (correction)
  • Dow Transports -19.4% from highs (correction)
  • Russell 2000 -20.6% from highs (bear market)

The Russell 2000 is often an early indicator of where the rest of the market is going, and if that turns out to be the case this time around then we should expect the Dow and the S&P 500 to fall a lot farther.

When asked about this market downturn by CNBC, one equity strategist actually used the “R” word

“The sell-off comes from the risk-off sentiment. Small caps are riskier than large caps, and there are some concerns about the end of a cycle in the U.S. and that we are entering a recession,” said Tobias Levkovich, chief U.S. equity strategist at Citi.

We haven’t even had any sort of a major “trigger event”, and yet stock prices have been steadily falling for weeks.

How bad could things ultimately get if there is some sort of “Lehman Brothers moment” that sets off a full-blown state of panic?

Already, many are using the term “bear market” to describe what is happening.  For instance, Jeffrey Gundlach attracted a huge amount of attention when he made the following statement on Monday…

DoubleLine Capital CEO Jeffrey Gundlach said Monday that he “absolutely” believes the S&P 500 will go below the lows that the index hit early in 2018.

“I’m pretty sure this is a bear market,” Gundlach told Scott Wapner on CNBC’s Halftime Report. The major averages fell to session lows following his comments.

And some high profile stocks are already well beyond bear market territory.  Goldman Sachs is now down 40 percent from the 52-week high, and the banking sector as a whole is just getting crushed.

Trillions upon trillions of dollars of paper wealth has disappeared, and needless to say, hedge funds are starting to go down like dominoes.  Earlier today, a New York Post article used phrases such as “losing their shirts” and “financial wipeout”…

The stars of the biggest hedge funds are losing their shirts as analysts fear a major financial wipeout is imminent.

From Ken Griffin’s Citadel, to Israel Englander’s Millennium Management, one big name after another is racking up negative returns lately, amid bad bets in a saturated market.

On Monday, we witnessed more forced hedge fund liquidations, and that was one of the major factors that pushed prices down

As we noted previously, you are witnessing a massive culling of the hedge fund industry as hundreds of funds are liquidated and thousands more get sizable redemptions. Many of these funds own the same companies—the outcasts from the indexed world, the cheap, the unloved; the same stocks that many other hedge fund managers own. With the hedge fund industry going in reverse, there is suddenly no natural buyer for what must be sold. As a result, you are seeing waves of forced sell orders and few buyers (which for those so inclined, is creating good bargains all around).

Those of you that have been waiting for the stock market to implode can finally stop waiting.

It is here, and it is really, really bad.

Meanwhile, a new survey contains more evidence that average Americans are becoming increasingly pessimistic about the U.S. economy.  In fact, the numbers in the survey were “essentially reversed” from earlier this year…

Overall, 28 percent of Americans said the economy will get better in the next year, while 33 percent predict it will get worse, according to the survey, which was released Sunday. Those numbers were essentially reversed from January, when 35 percent said the economy would get better and 20 percent said it would get worse.

The psychological shift that I wrote about a few weeks ago appears to be accelerating.  It is starting to become exceedingly clear that a major crisis has begun, and now the big question is this – how bad will things get in 2019?

Well, Ron Paul told CNBC that “it could be worse than 1929″…

Paul said Thursday on CNBC‘sFutures Now that “Once this volatility shows that we’re not going to resume the bull market, then people are going to rush for the exits.”  Paul added that “it could be worse than 1929.”  He was referencing the fateful day in October of 1929 when the stock market crashed, and the United States was flung into the Great Depression that lasted ten years. During that year, a worldwide depression was ignited because of the U.S.’s market crash.  The stock market began hemorrhaging and after falling almost 90 percent, sent the U.S. economy crashing a burning.

Will it ultimately be that bad?

Only time will tell, but right now things certainly do not look good, and I have a feeling that they are about to get a whole lot worse.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

 

“Something Is Wrong Here”: U.S. Stocks Plunge Again And Are Having Their Worst Quarter In 7 Years

The Dow Jones Industrial Average plummeted another 496 points on Friday as panicked investors continue to pull billions of dollars out of the stock market.  With less than two weeks to go until Christmas, the markets are not supposed to be experiencing this kind of turmoil, but it is happening and there is no end in sight.  During the fourth quarter of 2018, we have already seen the S&P 500 fall 11 percent.  Even if it doesn’t go down any further, that will be the worst quarter in 7 years.  And of course the S&P 500 is not alone – at this point all of the major indexes are officially in correction territory.  Things are certainly getting quite frightening on Wall Street, and many believe that the worst is yet to come.

Despite widespread assurances from the mainstream media that the wise thing to do is to keep your money in the market, investors are pulling money out of equities at a near record pace

Jittery investors yanked a record $39 billion from global equities in the latest week, according to a Bank of America Merrill Lynch report released Friday. That included $28 billion that exited US stocks, the second-highest on record. And a record $8.4 billion was pulled from investment grade bonds.

The “race for the exits” that we have been witnessing really is turning into a bit of a stampede, and once panic starts to spread it can be very difficult to stop it.

So why is all of this happening?

Well, one market strategist told CNN that “something is wrong here” and that his firm cannot deny that we are in a “global slowdown”…

Markets were dinged by a batch of negative corporate and economic developments, especially weak growth numbers out of China and Europe.

“Something is wrong here. There is this global slowdown. We can’t deny it,” said Michael Block, market strategist at Third Seven Advisors, a private wealth management firm.

We most certainly are in a global economic slowdown, and this is something that I have been telling my readers for months.

On Friday, we got more troubling numbers out of China.  The following comes from CNBC

China reported industrial output and retail sales growth numbers for November that missed expectations. This is the latest sign shown by China that its economy may be slowing down. The data also underscored the rising risks to China’s economy as Beijing works to resolve an ongoing trade war with the U.S.

“The economic data continues to bear out growth is slowing,” said Tom Martin, senior portfolio manager at Globalt. “There is still a lot of positive positioning out there. As the data continues to slow, people are feeling less comfortable with that and start to sell.”

Markets tend to go down a whole lot faster than they go up, and the losses are really starting to pile up.

Here is how Zero Hedge summarized the carnage that we have witnessed over the last several months…

  • Dow -10.5% from highs
  • S&P -11.3% from highs – lowest weekly close since March 2018
  • Nasdaq Comp -14.6% from highs
  • Trannies -17.8% from highs – Nov 2017 lows, worst 2-week drop since Aug 2011
  • Russell 2000 -18.5% from highs – lowest since Sept 2017

Financial stocks have been getting hit particularly hard.

S&P financials have now declined 20.3 percent from the 52-week high, and that officially puts them in bear market territory.

The S&P bank index has fallen even farther.  It is now down 24 percent from the 52-week high, and global banking stocks overall have been absolutely crashing.

Banking stocks led the way down in 2008, and now it is happening again.

This is very quickly becoming an extremely serious situation.  Trillions upon trillions of dollars worth of “paper wealth” is evaporating all over the globe, and we are witnessing disappointing economic numbers just about everywhere.

We will see what happens on Wall Street next week.  The second half of December is normally a very sleepy time for the markets, but that may not happen this year.  Volatility has returned with a vengeance, and we have already set an all-time record in 2018 for big moves of the VIX

The S&P 500 has averaged a daily range of 2 percent for the month, while the Dow Jones Industrial Average has closed with triple-digit moves in all but three sessions.

Big moves have pushed the VIX to a record 13 one-day moves of more than 20 percent this year.

Over the past few years, a lot of Americans have become deeply complacent, and that is a huge mistake.  Just because our long-term financial problems were delayed does not mean that they were canceled.

The truth is that nothing has changed as far as the long-term outlook is concerned.  Without a doubt we will pay a very great price for our mistakes, and a day of reckoning is inevitably coming.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time to do so.

Sabotage: The Deep State Has Destroyed Trump’s Chances Of A Trade Deal With China, And The Stock Market Is Tanking As A Result

Somebody out there apparently does not want President Trump to make a trade deal with China.  Just after U.S. and Chinese officials agreed to suspend the implementation of new tariffs for 90 days, one of China’s most important tech executives was literally kidnapped as she was changing planes in Canada.  Huawei CFO Meng Wanzhou was simply on her way to Mexico, but at the urging of U.S. authorities the Canadians grabbed her and are refusing to let her go.  Reportedly, the plan is to extradite her to the United States where she will apparently face charges relating to Huawei’s evasion of U.S. sanctions against Iran.  When Trump was negotiating face to face with the Chinese, he was not aware that this was taking place.  So now all of Trump’s hard work is out the window, and our relations with the Chinese are probably the worst that they have been since the Korean War.

If U.S. authorities wanted to punish Huawei, they should have just slapped a big fine on them and have been done with it.

The Chinese would have been annoyed, but not that much damage would have been done.

But kidnapping a high profile member of Chinese tech loyalty and throwing her in prison is something that the Chinese will not forgive.

The Chinese are a deeply nationalistic people, and the kidnapping of Meng Wanzhou is being treated as a grave national insult in China.  If the goal of the Deep State was to really upset the Chinese, they picked a perfect target.  The following comes from Robert Wenzel

“This is a really big deal. Ms. Meng is by birth and position a member of China’s corporate royalty,” David Mulroney, a former Canadian ambassador to China, is quoted by TGM as having said.

According to TGM, Meng, 46, who also goes by the name Sabrina, was appointed CFO of Huawei in 2011 and is also one of four deputy chairs. She appears to be being groomed for the top job at Shenzhen-based Huawei, which is now the world’s second-largest maker of telecommunications equipment.

Just imagine how Americans would feel if China kidnapped a high profile member of our tech royalty and multiply that outrage by about 10.

Until Meng Wanzhou is let go, there is not going to be any deal with China.  Many Americans are not familiar with Huawei, but they are essentially China’s version of Apple or Microsoft.  The following originally comes from CNN

Huawei is one of the world’s biggest makers of smartphones and networking equipment. It is at the heart of China’s ambitions to reduce its reliance on foreign technology and become an innovation powerhouse in its own right.

The country is pumping hundreds of billions into its “Made in China 2025” plan, which aims to make China a global leader in industries such as robotics, electric cars and computer chips. The introduction of 5G wireless technology, which hinges on Huawei, is a top priority.

Meng Wanzhou is not just the CFO of the company.  She is also the daughter of the founder of the company and she is considered to be a hero by millions of Chinese.

So what in the world is the Deep State thinking?  Are we going to start regularly kidnapping individuals that work for foreign corporations that have somehow violated U.S. laws?

And should Americans expect the same treatment?  How would you like it if your mother or daughter was kidnapped while changing planes in a foreign country because the company that she works for had committed some sort of violation?

I don’t want to make it sound like Huawei is perfectly innocent, because they aren’t.  But this is a move that is not just going to ensure a nightmarish trade war with China.  Ultimately, things could get a whole lot worse than that.

At this point, the Chinese have summoned the U.S. ambassador and have formally demanded Meng Wanzhou’s release

The Chinese foreign ministry on Sunday summoned U.S. Ambassador to China Terry Branstad to protest the detention of a senior tech executive by the Canadian authorities “at the unreasonable behest of the United States.”

Vice Foreign Minister Le Yucheng demanded the release of Meng Wanzhou, chief financial officer of Huawei Technologies, who is accused by U.S. officials of attempting to circumvent U.S. sanctions on Iran.

It would be wonderful if Meng Wanzhou was released, but it doesn’t look like that is going to happen.

So now our relationship with China is officially in the toilet, and this is one of the factors that could push stock prices much lower once again this week.  In fact, as I write this article Dow futures are way down

U.S. stock futures fell on Sunday night as traders feared an intensifying trade war between the United States and China.

Dow Jones Industrial Average futures dropped 197 points, implying a decline of 173.95 points at Monday’s open. S&P 500 and Nasdaq 100 futures also declined. The losses would add to a steep decline from last week.

This current “correction” was supposed to be over by the time December rolled around, but instead stock prices accelerated their decline last week.

And many of those that work in financial circles are starting to use language that is much more pessimistic than we have become accustomed to seeing.  Here is just one example

“We’re very mindful once again where we’re at in the cycle,” Gregory Carmichael, chief executive of the Cincinnati-based lender Fifth Third, said at a conference last week. “We’re well positioned to deal with the downturn in the economy, and we’ll be very cautious.”

I don’t know what “well positioned to deal with the downturn in the economy” means exactly, but it sounds nice.

It frustrates me that so few people seem to understand the gravity of the situation that we are facing.  Our stores are filled with cheap products that come from China and they own more than a trillion dollars of our national debt.  The two largest economies in the entire world are decoupling from one another, and if the Chinese conclude that they are not able to salvage the relationship then they will rapidly become an exceedingly dangerous enemy.

This is a major turning point, and the kidnapping of Meng Wanzhou has put us on a road that doesn’t lead anywhere good.  Hopefully things can rapidly be fixed, because if not, events are likely to start escalating quite dramatically.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.