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Finance expert warns 1987-style market crash coming in last half of 2013
(NaturalNews) Not much prone to gimmicky pronouncements or over-hyped predilections, a noted financial expert says hold onto your 401k and investment portfolio, because by the second half of this year, there could be a major financial disaster not unlike the market crash of 1987.
Per CNBC:
The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem? The market ended up tanking in the second half of that year – dropping 36 percent from the Aug. 25 peak to the October low, before closing out 1987 nearly exactly where it began.
And now, the publisher of the Gloom, Boom & Doom Report, Marc Faber, believes the very same cycle will repeat itself later this year.
‘Some of the tailwinds are no longer in place’
“In 1987, we had a very powerful rally, but also earnings were no longer rising substantially, and the market became Read more…
US stocks plunge, Dow falls more than 500 points
The Dow Jones Industrial Average plunged 4.3 percent Thursday, its worst one-day drop in more than two years, as global markets melted down over fears of another world economic downturn.
The Dow was down 512.76 points to 11,383.68; the broader S&P 500 lost 4.8 percent to 1,200.07, while the tech-heavy NASDAQ Composite plunged 5.1 percent to 2,556.39.
More turmoil over sovereign debt problems in Europe and feeble US economic data are stoking “fear that the economy is heading for a double-dip recession,” said Peter Cardillo of Rockwell Global Capital.
“The market is pricing that in,” he said.
Markets worldwide were on edge over fiscal weakness in Italy and Spain and the eurozone’s ability to contain more crisis, as the two countries’ borrowing costs surged in recent days.
Meanwhile the US Labor Department reported that weekly claims for unemployment benefits remained at a high 400,000 last week, as business and government layoffs persisted while new job creation remained sluggish.
All of the Dow’s 30 blue-chip stocks were hit by the sell-off, but losses were most pronounced in the basic materials sectors, energy and financial companies.
United States to hit debt ceiling on Monday
WASHINGTON — The debt-laden US government’s credit card will hit its limit Monday, creating a cash crunch that puts the country’s credit standing at risk as politicians battle over its long-term deficit.
Reaching the $14.29 trillion ceiling set by Congress will not have an immediate impact on government finances, because the Treasury has found about ten weeks of wiggle-room in short-term adjustments and an unexpected April jump in tax revenues.
But with Republicans refusing to increase the ceiling without massive future spending cuts, the longer the fight over bridging the country’s deficit goes on, the higher the stakes will get.
If nothing is done by about August 2, there is a chance the United States, which has always merited a top-grade credit rating, could do the unthinkable — default on its debt payments.
Few think it will get that far, as the White House leads behind-the-scenes talks on a grand strategy on the deficit — with Republicans insisting on spending cuts and Democrats demanding tax increases as well.
Still, some liken the fight to a game of chicken being played with the country’s credit standing at Read more…
Wealth Cycle Investments
Wealth cycles are nothing new, however, the potential of this upcoming cycle will be the largest in the history of mankind impacting that of global proportions. When the financial currencies of the world collapse, the transfer of wealth will happen literally overnight. Those who are invested in gold/silver certificates, bank accounts, stock market, checks, bonds, IRA’s, currency (ie Federal Reserve Note, Euro) are prone to loose everything they have worked so hard for. You must recognize what cycle we are in to avoid the pitfalls. It’s the same as common knowledge, if you were watching the weather channel and the meteorologist says that there will be a record blizzard in 24 hours what would you do? The first thing I would do is to make sure that my house has ample food, warm clothing and lots of firewood. If you don’t take these certain precautions surely you will suffer the consequences of hypothermia, starvation or even death. 
Wealth cycles have a long history originating in ancient Greece and Rome. Every time in history upon the birth of a fiat system when a government intervened in free markets, the markets would eventually undergo a correction. You can see that every time a government began devaluing its currency by creating more and more of it, certain events, like inflation or hyperinflation, would follow, every time. In the case of America the same thing is beginning to snowball.
This current cycle that we are in heavily favors gold and silver. You see it on the news everyday and you read it in the newspaper. Question is, have you ever thought about selling your scrap precious metal to one of those gold buyers you just saw on TV a few minutes ago? If you were to sell your precious scrap metal or coins for the inflated quote of dollars they will give you then the following week the monetary system collapses what would you have gained?
Countries such as China have recognized this cycle. It recently was announced that China imported 209.7 metric tons of gold during the first ten months of 2010. That was five times more gold than China imported during the first ten months of 2009. China is even encouraging its citizens to purchase gold and silver! Other nations such as India, Russia, Brazil, even Sri Lanka have been making news by announcing that they all want to build more gold reserves. When you see large international moves like this, you have to know something is up.
Mike Maloney says “I’m not a gold bug or a silver bug. I’m really a cycles guy. Silver, I believe, is the best way to get a whole bunch of cash flow, real estate, high-dividend-yield stocks, or something that is creating income every single month. What you eventually want is cash flow.”
http://blogs.wsj.com/marketbeat/2010/12/03/gold-demand-huge-buying-from-china/
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