(ECONOMIC CRISIS) WARNING: The US Stock Market Has A 70% Chance Of Crashing RIGHT NOW

(ECONOMIC CRISIS) WARNING: The US Stock Market Has A 70% Chance Of Crashing RIGHT NOW

Vanguard’s chief economist Joe Davis said investors need to be prepared for a significant downturn in the stock market, which is now at a 70 percent chance of crashing.  That chance is significantly higher than it has been over the past 60 years.


The economist added, “It’s unreasonable to expect rates of returns, which exceeded our own bullish forecast from 2010, to continue.” In its annual report, the company told investors to expect no better than four to six percent returns from stocks in the next five years.  Vanguard, which manages roughly $5 trillion in assets and is a proponent of long-term investing, isn’t sounding the alarm bells to scare investors out of the market.  They simply want investors to be prepared.
“The risk premium, whether corporate bond spreads or the shape of yield curve or earnings yields for stocks have continued to compress,” said Davis. “We’re starting to see, for the first time… some measures of expected risk premiums compressed below areas where we think it can be associated with fair value.“
According to RT, Davis also said that overreaching is no better a solution for a lower-return environment than getting out of the market entirely. He expressed worries that after hearing of “lower returns,” some investors will view that as a catalyst to become more aggressive to generate the returns they have been used to in recent years.
“You need to stay invested, because of lower expected returns,” Davis said, adding “Don’t become overly aggressive. The next five years will be challenging, and investors need to have their eyes wide open.”
Just ten years after the 2008 financial crisis “very little has been really fixed,” and the next bubble is about to burst, says Bill Blain, a strategist at Mint Partners. According to Blain, this time, it is the bond markets that will trigger the mayhem and collapse. The 2008 crisis, which was about consumer debt, was triggered by mortgages. We still have a consumer debt crisis problem ahead, warns Blain, but the next financial crisis is likely to be in corporate debt.
“I’m convinced bond markets are the REAL bubble we should be watching, and it’s going to start in high yield…” Blain warned.

We Have Tripled The Number Of Store Closings From Last Year, And 20 Major Retailers Have Closed At Least 50 Stores In 2017

(By Michael Snyder) Did you know that the number of retail store closings in 2017 has already tripled the number from all of 2016?  Last year, a total of 2,056 store locations were closed down, but this year more than 6,700 stores have been shut down so far.  That absolutely shatters the all-time record for store closings in a single year, and yet nobody seems that concerned about it.  In 2008, an all-time record 6,163 retail stores were shuttered, and we have already surpassed that mark by a very wide margin.  We are facing an unprecedented retail apocalypse, and as you will see below, the number of retail store closings is actually supposed to be much higher next year.  Whenever the mainstream media reports on the retail apocalypse, they always try to put a positive spin on the story by blaming the growth of Amazon and other online retailers.  And without a doubt that has had an impact, but at this point online shopping still accounts for less than 10 percent of total U.S. retail sales. Look, Amazon didn’t just show up to the party.  They have been around for many, many years and while it is true that they are growing, they still only account for a very small sliver of the overall retail pie. READ MORE

COMMENT BELOW!

SOURCE