COLLAPSE IMMINENT: RBS Tells stock Clients “SELL EVERYTHING…” and JP Morgan say “Use any bounce as selling opportunity”
Signalling the collapse of stock markets is IMMINENT, the Royal Bank of Scotland (RBS) has told clients today that 2016 will be “cataclysmic” and they should SELL EVERYTHING except high quality bonds”
Even worse, JP Morgan told clients today “Use any bounce as a selling opportunity.”
This could be “it.”
RBS cries ‘sell everything’ as deflationary crisis nears
Clients told to seek safety of Bunds and Treasuries. ‘This is about return of capital, not return on capital. In a crowded hall, exit doors are small’
J.P. Morgan Chase has turned its back on the stock market: For the first time in seven years, the investment bank is urging investors to sell stocks on any bounce.
“Our view is that the risk-reward for equities has worsened materially. In contrast to the past seven years, when we advocated using the dips as buying opportunities, we believe the regime has transitioned to one of selling any rally,” Mislav Matejka, an equity strategist at J.P. Morgan, said in a report.
Aside from technical indicators, expectations of anemic corporate earningscombined with the downward trajectory in U.S. manufacturing activity and a continued weakness in commodities are raising red flags.
“We fear that the incoming fourth-quarter reporting season won’t be able to provide much reassurance for stocks,” he said.
http://www.marketwatch.com/story/bearish-jp-morgan-says-sell-stocks-on-any-bounce-2016-01-11
BoA: Rail traffic an indication of economic slowdown
Railroad cargo in the U.S. dropped the most in six years in 2015, and things aren’t looking good for the new year.
“We believe rail data may be signaling a warning for the broader economy,” the recent note from Bank of America says. “Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are generally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009.”
http://www.bloomberg.com/news/articles/2016-01-11/bank-of-america-rail-traffic-is-saying-something-worrying-about-the-u-s-economy
Amid Stock Market Panic, Dozens Of Chinese Billionaires Are Mysteriously Disappearing
http://www.activistpost.com/2016/01/amid-stock-market-panic-dozens-of-chinese-billionaires-are-mysteriously-disappearing.html
Maritime Shipping Stops
“Nothing Is Moving,” Baltic Dry Crashes As Insiders Warn “Commerce Has Come To A Halt”
The continued collapse of The Baltic Dry Index. Today down to 415
Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world. He told me they had no ships at sea right now, because operating them meant running at a loss.
This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty.
Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.
This has never happened before. It is a horrific economic sign; commerce is literally stopped.
From VesselFinder.com and MarineTraffic.com
The pundits can disingenuously blame the crashing Baltric Dry Index on container ship overcapacity and find some dopes to believe that fairy tale, but there’s only one explanation for collapsing rail freight shipment volume in the United States: the consumer has finally suffocated from too much debt and declining real income.
We believe rail data may be signaling a warning for the broader economy,” the recent note from Bank of America says. “Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are ge
nerally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009. – Bank of America brain trust
Eric Dubin of The News Doctors brought this article to my attention: Rail Traffic Is Saying Something Worrying About the U.S. Economy
I’d like to point out that the price of oil is collapsing. It will soon be in the $20’s. Several Wall Street fraud shops have decided that oil is headed to $20. I made that call 6 months ago. Oil is the economy’s canary in the coal mine that the Fed can not remove before it dies. Rail freight traffic is the canary’s twin brother.
I hope everyone is braced for impact because the system is in for a much bigger shock than occurred in 2008/2009…and the Fed is out of bullets – just ask former Fed President Richard Fisher…
http://investmentresearchdynamics.com/rail-freight-shipments-are-collaps...
Economic Collapse Happening Now -Rob Kirby & Greg Hunter Video
acroeconomic analyst Rob Kirby’s predictions of a downward spiraling economy are coming true. Kirby contends, “I think the last time we spoke, it was in early December. I suggested that a window was opening where we were very likely to see some systemic breakdowns in our financial universe to likely start occurring.
Other headlines:
AC
http://investmentwatchblog.com/collapse-imminent-rbs-tells-stock-clients-sell-everything-and-jp-morgan-say-use-any-bounce-as-selling-opportunity/
Even worse, JP Morgan told clients today “Use any bounce as a selling opportunity.”
When financial heavyweights like RBS and JPM publicly say such things, the end is nigh; it means it is already too late.
I fear financial DOOM tomorrow as investors digest this advice overnight.This could be “it.”
RBS cries ‘sell everything’ as deflationary crisis nears
Clients told to seek safety of Bunds and Treasuries. ‘This is about return of capital, not return on capital. In a crowded hall, exit doors are small’
RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.
The bank’s credit team said markets are flashing stress alerts akin to the turbulent months before the Lehman crisis in 2008. “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,” it said in a client note.
Andrew Roberts, the bank’s credit chief, said that global trade and loans are contracting, a nasty cocktail for corporate balance sheets and equity earnings. This is particularly ominous given that global debt ratios have reached record highs.
“China has set off a major correction and it is going to snowball. Equities and credit have become very dangerous, and we have hardly even begun to retrace the ‘Goldlocks love-in’ of the last two years,” he said.
Mr Roberts expects Wall Street and European stocks to fall by 10pc to 20pc, with even an deeper slide for the FTSE 100 given its high weighting of energy and commodities companies. “London is vulnerable to a negative shock. All these people who are ‘long’ oil and mining companies thinking that the dividends are safe are going to discover that they’re not at all safe,” he said.
Bearish J.P Morgan says sell stocks on any rally
For first time in seven years, advice moves away from buy the dipsJ.P. Morgan Chase has turned its back on the stock market: For the first time in seven years, the investment bank is urging investors to sell stocks on any bounce.
“Our view is that the risk-reward for equities has worsened materially. In contrast to the past seven years, when we advocated using the dips as buying opportunities, we believe the regime has transitioned to one of selling any rally,” Mislav Matejka, an equity strategist at J.P. Morgan, said in a report.
Aside from technical indicators, expectations of anemic corporate earningscombined with the downward trajectory in U.S. manufacturing activity and a continued weakness in commodities are raising red flags.
“We fear that the incoming fourth-quarter reporting season won’t be able to provide much reassurance for stocks,” he said.
http://www.marketwatch.com/story/bearish-jp-morgan-says-sell-stocks-on-any-bounce-2016-01-11
BoA: Rail traffic an indication of economic slowdown
Railroad cargo in the U.S. dropped the most in six years in 2015, and things aren’t looking good for the new year.
“We believe rail data may be signaling a warning for the broader economy,” the recent note from Bank of America says. “Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are generally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009.”
http://www.bloomberg.com/news/articles/2016-01-11/bank-of-america-rail-traffic-is-saying-something-worrying-about-the-u-s-economy
Amid Stock Market Panic, Dozens Of Chinese Billionaires Are Mysteriously Disappearing
http://www.activistpost.com/2016/01/amid-stock-market-panic-dozens-of-chinese-billionaires-are-mysteriously-disappearing.html
Maritime Shipping Stops
“Nothing Is Moving,” Baltic Dry Crashes As Insiders Warn “Commerce Has Come To A Halt”
The continued collapse of The Baltic Dry Index. Today down to 415
Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world. He told me they had no ships at sea right now, because operating them meant running at a loss.
This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty.
Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.
This has never happened before. It is a horrific economic sign; commerce is literally stopped.
From VesselFinder.com and MarineTraffic.com
The pundits can disingenuously blame the crashing Baltric Dry Index on container ship overcapacity and find some dopes to believe that fairy tale, but there’s only one explanation for collapsing rail freight shipment volume in the United States: the consumer has finally suffocated from too much debt and declining real income.
We believe rail data may be signaling a warning for the broader economy,” the recent note from Bank of America says. “Carloads have declined more than 5 percent in each of the past 11 weeks on a year-over-year basis. While one-off volume declines occur occasionally, they are ge
nerally followed by a recovery shortly thereafter. The current period of substantial and sustained weakness, including last week’s -10.1 percent decline, has not occurred since 2009. – Bank of America brain trustEric Dubin of The News Doctors brought this article to my attention: Rail Traffic Is Saying Something Worrying About the U.S. Economy
I’d like to point out that the price of oil is collapsing. It will soon be in the $20’s. Several Wall Street fraud shops have decided that oil is headed to $20. I made that call 6 months ago. Oil is the economy’s canary in the coal mine that the Fed can not remove before it dies. Rail freight traffic is the canary’s twin brother.
I hope everyone is braced for impact because the system is in for a much bigger shock than occurred in 2008/2009…and the Fed is out of bullets – just ask former Fed President Richard Fisher…
http://investmentresearchdynamics.com/rail-freight-shipments-are-collaps...
Economic Collapse Happening Now -Rob Kirby & Greg Hunter Video
acroeconomic analyst Rob Kirby’s predictions of a downward spiraling economy are coming true. Kirby contends, “I think the last time we spoke, it was in early December. I suggested that a window was opening where we were very likely to see some systemic breakdowns in our financial universe to likely start occurring.
Other headlines:
Fed Sent Record $97.7 Billion in Profits to US Treasury in 2015
Wall Street Journal–45 minutes ago
The Fed said Monday that the $97.7 billion figure for 2015 is preliminary and may be adjusted when the central bank’saudited financial statements are …
Arch Coal Files for Bankruptcy, Reaches $4.5 Billion Debt Deal
Bloomberg–5 hours ago
While there’s no denying that China’s selling may dent demand for Treasuries in the near term, the fact the nation is raising hundreds of billions of dollars to …
Glencore Debt Swaps Jump to Six-Year High as Copper Price Slides
swissinfo.ch–42 minutes ago
(Bloomberg) — The cost of insuring Glencore Plc’s debt against default rose to a more than six-year high as the price of raw materials such as copper continued …
Rand Has Flash Crash as China’s Woes Trigger Drop of Up to 9%
Bloomberg–4 hours ago
South Africa sold 37 percent of its exports to China in 2014. “The risk …. Treasuries 10-year note yields rose from the lowest level in more than two months.
Rand Meltdown Brings South African Recession, Junk Rating Closer
Bloomberg–3 hours ago
Rising inflation risks stemming from the rand may force the central bank to take more aggressive action in tightening policy at a time when the economy is barely …
Zuma Premium Haunts South Africa as Default Risk Rises: Chart
Bloomberg–5 hours ago
Following Nene’s replacement by a little-known lawmaker, the cost of insuring the nation’s debt against default for five years climbed to the highest since April …
China opens new front in war on speculators
Financial Times – ?2 hours ago?
The elevated overnight CNH Hong Kong Interbank Offer Rate (Hibor) shows how volatility in China’s currency — once a highly domestic sideshow for global investors — is fanning out across the globe through renminbi internationalisation. Hong Kong, the …
China’s central bank fends off attack on yuan in Hong Kong
South China Morning Post (subscription) – ?15 hours ago?
The People’s Bank of China (PBOC) on Monday fought off an attack on the yuan by currency speculators, in the process driving up the cost of borrowing for offshore yuan to its highest ever. CNH Hibor, or the interbank rate for offshore yuan in Hong Kong …
London Hedge Fund Omni Sees 15% Yuan Drop, and More in a Crisis
Bloomberg – ?13 hours ago?
The declining currency, a debt pile estimated at 280 percent of gross domestic product and a volatile equity market are complicating Premier Li Keqiang’s efforts to boost an economy estimated to grow at the slowest pace in 25 years. While intervention …
Offshore Yuan Liquidity Dies, Sending Interbank Rate Soaring
Wall Street Journal – ?11 hours ago?
It comes after Chinese banks, proxy for China’s central bank, intervened in the market and bought up the yuan last week. “As these banks are … This effectively increased the cost for speculators to borrow and short the yuan, traders say. The spot CNH …
Shenzhen closes down 6.6% as China market rout continues
Financial Times–10 hours ago
China equities plunged further on Monday after one of the most horrid weeks on record, as investors failed to take heart from efforts by the central bank to …
Crude Oil Tumbles to 12-Year Low as Hedge Funds Head for Exit
Bloomberg – ?1 hour ago?
… adding to last week’s 10 percent decrease. Speculators‘ net-long position in West Texas Intermediate declined 24 percent in the week to Jan. 5, U.S. Commodity Futures Trading Commission data show. Producer prices in China fell for a record 46th …
Nigeria: Central Bank Cuts Dollar Supplies As Currency Crisis Worsens
Forbes – ?14 minutes ago?
Nigeria’s central bank has announced that it will halt all US dollar sales to bureau de change operators, as the country struggles to cope with a crippling shortage of hard currency. Under the new measures, Nigerian banks will also be able to accept …
Copper Falls to New Six-Year Low on Concerns Over China
Wall Street Journal–5 hours ago
The industrial-metals complex has been under pressure after China’s central bank engineered a weakening of the yuan. According to analysts the price of …
wave of sovereign debt crises can come sweeping
When it comes to sovereign debt, the term “default” is often misunderstood. It almost never entails the complete and permanent repudiation of the entire stock of …
Holiday Hangovers: Tackling Credit Card Debt in the New Year
Bloomberg – ?1 hour ago?
The full year-data isn’t yet in, but the Federal Reserve’s most recent measure of all consumer or household debt, released Friday, clocked in at a whopping $3.5 trillion at the end of November. This measure, which includes credit card debt as well as …
Why the Student Loan Crisis Is Even Worse Than People Think
TIME–7 hours ago
When discussing the student debt crisis, most people focus on the rapid growth … of college, even though they are four times more likely to default on their loans.
The Watchdogs: Chicago paid record borrowing-related fees in 2015
Chicago Sun-Times–17 hours ago
… that say we are in default or had to pay higher [interest] rates because we are below …. Bond proceeds also were used to pay $35 million in debt from Daley’s …
One in Six Occupational Pension Schemes could fail (UK)
Lexology (registration)–6 hours ago
… but will not survive if the pension deficit remains on the corporate balance sheet. The remaining 600 will never ever pay full benefits and the question becomes …
More than 60 DPS schools closed due to teacher sickout
The Detroit News–4 hours ago
… 2009, has $515 million in past debts and unpaid vendor and pension bills. … and no budget deficit when teachers took a nine-day strike to start the 1999-2000 …
Illinois’ lengthy budget delay to dominate 2016 legislative session
STLtoday.com – ?9 hours ago?
Also hovering over lawmakers is the state’s $111 billion pension debt. The state Supreme Court threw out the … Democrats want a combination of cuts and a tax increase to settle the dispute and plug a multibillion deficit. Rauner is open to increasing …
States Try To Hide the Burden of Debt by Fudging Numbers
Daily News–3 hours ago
The worst case scenario is seen in Illinois where the “unfunded liability” for … as much money as they promised intopension plans, causes many states to be in …
CalPERS’ new risk mitigation plan won’t fix what ails it
Pensions & Investments–8 hours ago
The reduced assumption about investment return will require higher contributions by employers, because future pension costs will be discounted by the lower …
The State of Chris Christie’s New Jersey, in Six Charts
Bloomberg–6 hours ago
The state’s borrowing costs compared with top-rated 10-year municipal bonds swelled as its credit rating fell nine times under Christie thanks to the pension …
U.S. coal production falls to lowest level in nearly 30 years
Southeast Missourian–12 hours ago
The slump has led to bankruptcies and layoffs at mining companies, and the effects have rippled outward, stressing state budgets and forcing layoffs in other …
Alarm bells sound in manufacturing over global economy
Telegraph.co.uk–18 hours ago
Alarm bells are ringing for Britain’s manufacturing companies as increased global volatility and growing pressures at home batter confidence within the sector.
AC
http://investmentwatchblog.com/collapse-imminent-rbs-tells-stock-clients-sell-everything-and-jp-morgan-say-use-any-bounce-as-selling-opportunity/
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