Thursday, October 20, 2022

"The Countdown For An Imminent 80 Percent Stock Market Crash Has Begun"

Full screen recommended.
"The Countdown For An Imminent 80 Percent 
Stock Market Crash Has Begun"
by Epic Economist

"The collapse of the greatest stock market superbubble continues to unfold, with losses spreading from sector to sector, and a wave of panic and pessimism starting to take over Wall Street. New research tracking real-time data exposed that the number of stocks that crashed over 80% is no longer in the hundreds, but in the thousands. However, experts say and indicators show that despite the catastrophic drops seen so far, the market has a lot further to fall in the coming weeks, and things are going to get even more turbulent as liquidity gets tighter and corporate earnings miss investors’ expectations. A day of reckoning has arrived, and from now on, we will watch the implosion of the biggest speculative bubble in history as the wild bull market switches into a hibernating bear.

After the September CPI report was released, it became clear that the most aggressive monetary tightening cycle is nowhere near its end, and that means more downside for stocks both in the short and long term. That’s really bad news for investors, especially considering that nearly one in six stocks have already crashed by 80% or more, according to a new study tracking real-time data published by The analysis showed that as of October 15, 2022, 1001 of the 6281 stocks traded on US financial markets have “imploded,” meaning that they’ve dropped 80% or more from their highs.

It is estimated that over 50% of the market is still overvalued, which is to say that many more zombie stocks are set to collapse as the Federal Reserve raises interest rates even more. And despite all that tightening, inflation isn’t coming down and economic imbalances aren’t fading away. Instead, slower consumer spending is silently driving a myriad of companies an edge closer to bankruptcy. At this point, it’s getting harder and harder to deny reality. Global stocks and bonds have already lost a record $46.1 trillion in value over the past nine months, as a wild selloff steamrolled numerous assets across the risk spectrum.

For indexes that started the year with valuations at multi-year or even record highs, the liquidity pullback has been pretty much like pressing a reset button. From a math standpoint, the situation is so bad, liquidity is so tight, that’s only a matter of time until the whole house of cards comes down, and when it does, millions will be left empty-handed, according to precious metals expert and financial writer Bill Holter.

“The action you are seeing now is exactly what you saw in 1987, and this is what you saw in August and September of 1929. This is what happens prior to crashes. It’s massive volatility both ways... people are losing both ways. The longs get stopped out on the downside, and the shorts get stopped out on the upside. Then, the whole floor gives way, and that’s where we are. We are right on the doorstep of a crash that will make 1987 and 1929 blush... Many people are going to lose everything overnight,” Holter alerted.

When the market falls as dramatically as it has since the beginning of this year, suddenly all of these semi-believable stories about making easy money will stop making sense. Investors will be forced to confront cold, hard reality and look for cold, hard cash. There’s no way to avoid a disaster that is already underway. So be ready for the most devastating asset bubble collapse of this entire generation!"

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