For months, we have been asked hundreds of questions.

We’ve endeavored to address every query we receive, but the most crucial and common question we’ve seen over and over again is: WHEN will markets tank?

Well, it’s time we roll up our sleeves and hit this question head on.

So let’s get to it…

The #1 Thing You Must Read Today

As former hedge fund managers, family office CIOs, managing directors, and bankers from the big banks of the U.S. and Europe with over 50 combined years of doing nothing else but investing and trading through three massive market cycles, we are equipped to speak frankly and, well, accurately.

In the video above, we give you our answer to your primary question, and support it with data rather than opinion.

We further support every point made in my video with links below – think of them as “video footnotes.”

For those who prefer visuals to reading glasses, we think this video hits all the critical signals you need as to WHEN markets will tank, WHY we know this, and most importantly, WHAT you can do to prepare.

Thus, rather than repeat every point made in the accompanying video, I’m going to cheat a little bit and simply bullet point the video’s key conclusions with links back to our prior articles which support the assertions we are making.

Normally, we try to minimize such links, but in this particular case, we are adding them now to make this a truly one-stop-shop to put everything into perspective.

Thus, if there was one article that you’d like to save and “click through” to get (and share) the fullest picture of where we are going and when we’ll get there, this is the one. It’s loaded with the information you and your loved ones will need to protect and grow your money while everyone else is hugging their knees once reality replaces central bank “faking it.”

More importantly, this information is free to one and all, and we think it may very well be the best one-stop-article for informing as many folks as we can about what to expect, when to expect it, and what to do about it.

Your Critical Signals to Watch

Recently, the National Association for Business Economics released a poll in which 72% of the economists they surveyed forecasted a recession (and hence market sell-off) by no later than the end of 2021, with 38% of those surveyed calling for a recession by the end of 2020 and another 34% calling for a recession by the end of 2021. Panelists put the odds of a recession for 2019 at only 15%.

As I argue in the video, such bearish forecasts could likely see a recession mjuch sooner than 2021, especially if GDP for Q3 and Q4 of this year see consecutive declines.

In any case, the bottom line is this: A recession is coming NOW, which means you have to prepare NOW.

To support this point, I addressed the following critical signals, each supported by the links below:

  1. The Inverted Yield Curve is screaming “recession ahead” and was a dependable recession indicator in every U.S. recession since the end of the Second World War;
  2. U.S. Industrial Production is in contraction alongside PMI declines at lows not seen since 2009;
  3. We are now seeing a stock market completely overvalued by CAPE signals and a bond market which is essentially nothing more than a junkyard whose deadly fangs will be seen the moment artificially compressed interest rates spring into deadly highs;
  4. An escalating trade war that is wreaking havoc on global markets and remains unresolved;
  5. Returning market volatility in which intraday market moves have reached the highest levels in U.S. history;
  6. Record-high store closings and bankruptcies confirming that the Main Street economy and U.S. middle class (i.e. the real economy) has not at all benefited from the so-called “recovery” which has singularly benefited Wall Street and the top 10% of American households. Such unprecedented wealth disparity is a profoundly dangerous precursor to market and social dangers;
  7. A transportation recession is already in full bloom as confirmed by data from the Cass Freight Index;
  8. A Washington D.C. and Federal Reserve in full desperation mode, as evidenced by a capitalist system which is no longer driven by capitalism, but is in fact totally rigged to fail as made all the more apparent by the recent repo disaster that took place on Monday;
  9. And any number of potential yet unforeseeable “black swan events,” such as a surprise geopolitical and/or military crisis as recently seen in the Saudi Arabian oil fields.

Again, if you click each of these links, we give you the data rather than the drama to confirm the points made in the above video.

If you want a market education all in one place, now you have it. Keep clicking or keep watching.

The Challenges of Timing a Rigged Market

As for more precise market timing of the next mega crash, in the video I address the forces that make such precision challenging yet hardly insurmountable to making informed, data-supported, and wealth-enhancing moves right NOW.

Specifically, I address how cancerous derivative markets (valued at 10X global GDP) have passed the point of managed-complexity that could have once been measured by traditional risk tools. In short, we are now in uncharted (immeasurable) waters of risk, as my prior discussion on complexity theory reminds.

I also address how the U.S. markets will rot last, thus buying us precious time to prepare ourselves for the debt iceberg and market crash just off our bow.

I concede as well that central banks will not let markets tank without a fight, and depending on just how desperate they become, including the very real possibility of further and extreme money printing, any rational timing forecast made here must humble itself to additional monetary experimentation/desperation – again think of the $275+ billion the Fed just printed this week to bail out the repo markets…

In short, the Fed’s days of “supremacy” are indeed numbered, but one would be unwise to underestimate or “fight the Fed” until a clear reversal is signaled.

Also, a sudden resolution of the ongoing trade war, if actually achieved, would buy markets months of additional time as well as new highs, as headlines sadly matter as much as (if not more than) cold facts.

Be Prepared

Finally, I close the video by underscoring the importance of cash as a risk dampener as well as a profit maker when investors do what almost no one ever does: Sell at tops, buy at bottoms, and therefore make a killing by avoiding getting killed. (To this end, I made a separate video to help this point sink in.)

Equally important to this simple yet unsurpassed (and time-tested) strategy is a case for gold, a strategy far more appropriate in these non-traditional (i.e. Fed-driven) markets than the outdated (and dangerous) role of traditional investing practices.

So, if you are new to Critical Signals Report, sit back and start clicking… You are about to become more informed than 90% of the investing world.

And if you are already an informed subscriber, please help us accomplish our sincere goal of getting the truth about these rigged markets and the pending crisis out to as many good folks as possible.

We thank you.

Sincerely,

Matt Piepenburg


Comments

8 responses to “Everything You Want to Know About When Markets Will Crash and What You Can Do to Make a Killing”

  1. Well done. Your reports are the only ones I forward to my son who is a financial adviser. I’m going to cash immmediately

  2. Well I asked and you certainly delivered. Loved the link to the “repo disaster”— things are starting to fall apart. Agree that the only thing delaying the inevitable disaster is just how long the Fed can continue this charade of Wall Street support disquised as a recovery.

  3. Matt:
    Masterfully done. You’ve given us an excellent scenario to plan accordingly. I’ve actually been expecting a crisis like you have outlined for the past 20 years. It seems that ‘the game’ is finally coming to a culmination.
    Thanks for your insights.
    Craig Sallin

  4. Kudos and many thanks. There is a great need for the reliable information you offer the public in these reports. I will only add that the indicator that is the hardest to quantify is the utter “Rot of Public Trust” – but also the one that we should all fear most. Thank you again.

  5. Zero or Negarive Interest rate world is where the US is also heading to join to Europe and Japan to the originator of Arabs world or Isram world society.
    Look at the arab world ! No interest world ! Do they have banks ? Yes, like the Iranian National bank ! Do they have private banks which need interest to exist ? So, no private catital formation which businesses need. With zero interest, who is going to lend money ? People with money like Shakes lend money to foreigners who pays interests. Only Goverment will lend money.

    What is going on in rhe Arab world in the past centuries or 1000’s years ?
    No economic development ! No commercial size money lending ! Only small money lending among close friends and families. That is all they get capitals !
    Small business only develops. No match to the free capitalistic world of today and past. So they are poor ! Sure, since oil discovered in their land, developed by Western capitals, and their land loads (Shakes) only get loyalties. Sure, they are rich, but not average people there. Religious people, what can you do for them. Religion interfere to their economy. Church interferes Science in the West. Put Galileo into the jail. Now,they interfere human sciences ! What can you do ?

    Anyway, America still has a few more point to go to Zero interests. Therefore, European and Japanese money still coming to America. That is is the time when America join the Zero interest world ! Where else is the money to go ?
    China still has a way to go Zero or India, Where else ? Are you going to put your money in China or India ? As long as interest rate go down, older bonds with higher interest rates become more valuable or higher prices. Therefore, buying bonds with even negative yield can make money ! Yields do not matter like dividends for stocks does not matter as long as prices go up. But, when bonds reach Zero interest rates, no more reason to buy bonds.
    Only Goverment is to buy like Europe and Japan ! That ( Recession ) is the time when America reaches Zero interest, the Stock markets worldwide collapse big !

  6. Thanks Matt, your comments and assessment of the current financial situation are incredibly honest, informative, and a timely warning for our future investment strategy
    John Steffensen (Australia)

  7. I see almost nothing written about Preferred Stocks in a market collapse and am not certain what to expect, although Fanny Mae and Freddie Mac Preferred stock have dropped sharply, but perhaps for a different reason, their Federal takeover??? Would you please comment on expected price movement for these stocks in a 50% sell off for Common Stocks.

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