Stock Market Crash 2018
 
The real truth about economic cycle reality, 
why markets always crash every 8-10 years
A closer look at history explains why a sharp
market drop in near...
 
It's in your power to prepare for 
the next market crash.
Protect yourself and your family.
Make money and prosper.
 
The next market crash is coming....
 How can you profit from the 
inevitable Market Crash?
 
STOCK MARKET CRASH 2018:
9 BEAR SIGNS YOU CAN'T AFFORD TO IGNORE 
 
1. HIGHEST LEVEL OF MARGIN DEBT IN THE HISTORY
 
Do you know why the market crashed in 1929?
 
For being the biggest crash in the United States History, surprisingly, not many people remember why it happened.

The main reason: High Level of Margin Debt.

Banks were lending like crazy and people were borrowing like crazy!

The economy of the "roaring 20's" was doing great and the stock market just kept rising.

Buying stocks and collecting quick profits became a "sure thing" in the eyes of many. Everyone was convinced: Stocks could go nowhere but up!

So people went out and bought stocks with margin debt (borrowed money)!

When the fresh earnings reports came out on "Black Thursday" they were nowhere as good as everyone expected. The selling frenzy began, people were screaming, crying and weeping as the most devastating crash in the history of the market was taking place as thousands of people gathered outside of the stock exchange.

People lost their fortunes when they least expected it.

Take a wild guess as to where the level of margin debt is now?
 
Market Crash 2018 Highest Margin Debt Level Since 1929 Crash
Level of Margin Debt is the highest in the entire history of the United States. Almost twice higher then it was 
before the market crash in 2007, 2008 and almost 3 times higher then in the market crash of 2000.
 
Watch the quick video below...

The Market Crash is Coming. Are you Prepared?
How will rising interest rates affect margin borrowing 
and what is about to happen?
 
Market Correction Soon. Are you Prepared to Profit?
2. GOOD BYE STOCK BUY BACKS. 
 
Artificially elevated and artificially supported stock prices are about to experience a real drop.
 
It's like a plastic surgery-only makes things uglier in the long run.
 
Stock buy back is a huge problem. It was actually illigal until 1982.

The prices of stocks has been artificially supported by the very companies themselves because of cheap money for last 8 -9 years.

The main issue here is the access to inexpensive capital by the companies has been used to buy back their shares opposed to growing the company itself, spending on human resources and technological breakthroughs.

"It boosts prices in the short run, but the real way to boost the value of a corporation is to invest in the future, and they are not doing that.”

This is how ridiculous it has gotten. The price of Chipotle, shares of the upscale fast food chain have skyrocketed from $60 to $800.

So what did the company do? Bought back shares at $500, $600, $800.

Now it’s buying shares back at $280!!!

What a waist!!!

And this is just one example of the many!

They should have shorted their own shares instead as a hedge against something bad happening.

Millions of dollars waisted that could have gone to expansion, product development, advertising, hiring, investments in technology and so on.

But what is the result? The company is miserably failing. 

There is no way to get millions of waisted capital back.

As interest rates rise they will no longer waist the capital to buy shares back.

What do you think will happen?

Shares will fall even lower.

Which means the shares they bought back at $800 would be worth 80-90% less then what the company paid for it.

With that money they could have started awhile new company or invested in something meaningful.

But guess what? One of the senior management guys was too busy snorting cocaine.

When the money is easily obtainable it is waisted. Especially in the hands of the wrong people.

When money is not produced but simply printed and put in circulation by the fed it simply produces a temporary injection of fake and wasteful demand in the economy. 

When the printer stops- fake consumption stops.. But by that time the people are so used to the easy way of making money and easy way of doing business. When they are actually faced with a situation where they have to work hard to earn it thats when things start getting really bad. The disaster happens-nobody wants to work hard anymore.

Why do you think after 3.9 trillion injection in the US economy by the Fed GDP barely moved?

The money was not used on production. The money was waisted.

Why work? When you can just buy bitcoin.

Cheap money created dangerous mentality.

Similar mentality was observed in 1920's when production in agricultural sector suffered as a result of everyone just wanted to get in the stock market and get rich by watching stock prices skyrocket.

The price of such mentality was a decade of great depression that followed the market crash of 1929.

For most of the 20th century, stock buybacks were deemed illegal because they were thought to be a form of stock market manipulation. 

But since 1982, when they were essentially legalized by the SEC, buybacks have become perhaps the most popular financial engineering tool in the C-Suite tool shed. 

And it’s obvious why Wall Street loves them: Buying back company stock can inflate a company’s share price and boost its earnings per share — metrics that often guide lucrative executive bonuses.


 
Market Crash Artificial Buybacks
The only other time the buybacks were at such a high level was 
right before the market crash in 2008.
 
Watch this 
Position yourself to profit from the next market crash.
3. Huge internet monopolies like Amazon, Google and Facebook are the death of small and medium size brick and mortar companies.
 
When you are a giant company you dominate economically through the economies of scale, meaning you can produces goods and services and offer them for less to the public because of the huge scale of your operations.

They buy for less. For example, they are able to buy raw materials, machinery, ingredients, negotiate contracts for better price with suppliers for less because of the large quantities of their orders. They can afford to sell for less and still make profit, because their costs are less.

They pay less for fixed business expenses. For example they are able negotiate better prices for real estate purchases and leases-therefore keeping their overhead expenses lower.

They pay less for credit and operating expenses. They are able to negotiate better terms on loans to expand faster-keeping their costs lower again.

And now they pay less in taxes! Just like all of those competitive advantages were not enough-Trump just gave them a tax gift amounting to billions of dollars.

All of the above factors allow them to offer goods and services for less then smaller size businesses.

This makes it almost impossible for an average business to compete.

Here's the list of businesses who closed their stores in 2017. The trend is to continue in 2018!
 
What do you think is going to happen to more and more businesses in the US as they are no longer able to compete with the giants? 

Many will file for bankruptcy.

Because, as their sales decline they won't be able to pay their creditors.
 
Watch this amazing documentary to find more details about 
why the market crashed in 1929...
Would you like to make money in the next market crash?
3.  Careless lending practices are back in style.
 
HIGHEST LEVEL OF STUDENT LOAN DEBT IN HISTORY.
 
1.5 trillion in student loan debt! Don't worry! We'll pretend like it's not there if you want a house loan!
 
Can't afford to pay your student loans
-no problem get a house loan!
 
Do you remember the Dodd-Frank Act? 

It was created in the aftermath of the 2008 Market Crash to regulate lending practices and make Wall Street investment products more trasperent to investors.

Trump administration modified the original Dodd-Frank act in 2017 to loosen lending regulations once again!

The after effects already can be seen in home lending practices where student debt is simply overlooked when making a loan decision.

So hold on.

They barely got a job out of college which pays the same as it did 15 years ago. Now they have student loans they have to pay, car payments, credit card payments, and now a mortgage?!

How are they going to make these payments?

They won't!

If you had to make a choice to pay your house monthly payment or student loan monthly payment what would you pay first?!


It's the the 1.5 trillion is student loans that they won't pay.

Apparantly not paying student loans back is becoming "the norm".
 
Trillion Dollar Student Loan Debt – The Next Financial Bubble?
50% student loan delinquencies?!
 
Find out now... 
 
Don't believe senior economists on student bubble? Listen to the younger generation explaining the issue in detail:
 
TAKE ADVANTAGE OF THE MARKET CRASH BEFORE 
IT TAKES ADVANTAGE OF YOU!
 
4. CARMAGEDDON.
 
American people have enjoyed the lowest monthly payments on their car loans for years!

As interest rates start to climb so will the monthly payments on getting a new vehicle.

There's one big problem with that.

As the cost of insurance, student tuition and other things have climbed 300-500% the wages and salaries have been stagnant. 

When people are going to try to trade in their vehicles this time they simply won't be able to for 2 main reasons:

1. Their new payment will be much higher
2. Their trade in value will be much lower

Since majority of the people put literalily no money down when they purchased their last vehicle they owe an insane amount of money in relation to it's current value.

What makes the situation even worse. There has been an influx of preowned vehicle that are coming off lease into the market. Huge supply with diminishing demand has been driving the resale prices on preowened vehicles lower.

So as the cost of credit goes up and the value of your trade-in goes down that means 2 things:

1. Your monthly payment is definitely going higher.
2. You will be required to put more money down to purchase a new vehicle.

For the last 10 years people have been buying because their payment was going down and they were able to do it with no money out of pocket.

What do you think will happen when this trend completely reverses?

Auto sales will plummet across the board.

Manufacture incentives are already at all time high in 2017.

Manufactures will have to slow down the production.

Detroit layoffs, dealer closures and auto repossession rates to hit all time highs in the next 2 years.
 
Don't be a victim of the next crash. Learn how to profit and prosper.
5. HIGHEST LEVEL OF CREDIT CARD DEBT IN HISTORY
 
1.1 TRILLION! 
 
Credit cards carry an adjustable interest rate.

Which means as rates rise, the rate of your credit card automatically rises.

Just look at the fine print of your credit card agreement, terms of use and conditions.

The Fed raised rates 3 times in 2017.

It also announced in December of 2017 that it intends to raise interest rates 3 times more in 2018.

Important thing to notice here that as interest rates continue to rise credit card debt will not be easy to refinace as mortgage debt when interest rates were falling.

The history shows that unemployment level of 4.1% is always followed by higher unemployment.

So what we have here is an environment where consumer bills and liabilities continue to rise while they are faced with layoffs in certain industries and higher unemployment rates.

Default on credit card debt in definitely on the horizon.

Outstanding revolving credit, which includes credit-card debt, rose to $1.02 trillion in June, according to a monthly report from the Federal Reserve released Monday.

But defaults are rising again for credit cards and auto loans. The New York Federal Reserve observed a 7.5% rise in the share of credit-card balances that were seriously delinquent, or at least 90 days past due, in the first quarter.

"We simply can't keep taking on credit card debt forever without it causing major problems," said Matt Schulz, the senior analyst at CreditCards.com. "This record probably won't be a major tipping point, but it likely isn't too far off."
 
Watch this quick video,
Visionary American Hedge Fund Manager and philanthropist, Stanley Druckenmiller on Bitcoin Future and Stock Market...
Don't miss the next bitcoin movement! Cash in on the crash!
6.  LOWERING COPORATE TAX RATE WILL HURT THE ECONOMY AND IT'S CITIZENS LONG TERM
 
Lowering taxes will not produce the desired outcome.

Simply giving billions in tax savings to biggest corporations in America will not save the economy.

Unfortunately this influx of “free” money does not increase the production level of the corporations.

Trump gave the money to those who appreciate it the least.

Just look at what they are already waisting the money on.

1. Higher CEO salaries and bonuses is not going to help the economy. 

What is the merit here? 

Did The CEO do something meaningful to increase the company’s production or value?

NO. The CEO is going to do the same thing as he did last year. 

But he will get paid twice more now.

2. Increasing minimum wages to employees will hurt workers, production and sustainability of businesses.

Again we have the same problem.

The extra pay is not tied to production here either.

You were doing an average job before. You are not doing anything different from what you did before. But now at BBT, for example, all of a sudden you are worth $4 dollar more per hour. Because BBT decided to raise minimum wages at their company from $11 to $15 hour.

This is actually dangerous for 2 reasons.

a. The company just voluntarily increased their costs of doing business permanently. Which is exactly the opposite of what a business should do to ensure it’s profitability, longevity and stability. It created nothing in the process of doing that. 

When the economy slows down and it always does periodically, the company will have to layoff more people. Where will these workers end up-you guessed it-the unemployment line. To make matters worse, now the company will have to produce same results with less workers. But why should the remaining workers work effectively now? 

Last time the company gave them a raise-they rewarded the behavior of doing the same, not more. So why should they expect less workers to produce more now? In other words it’s counterproductive and will hurt the company in the long run.

b. Everything that is simply given to someone is simply not appreciated. It’s like winning a lottery. You know what happens to the winners in a short amount of time after they win. They go broke. They frivolously spend the money. Because the money was easy. They did not have to work for it, gain new skills, produce at a higher level or create anything. They simply got lucky. So a pay increase may produce a short 

This actually gives the worker the wrong idea. Most people on hourly wage work 9-5. They take an hour lunch break, plus gossip in the office, plus coffee in the morning, etc. So technically they work less then that. Most of them certainly don’t strain and overwork themselves. But now they get to continue doing the same thing for a 35% pay increase. You mean I can just continue doing what I am doing and get pay more?! Awesome! Lets do it every year! 

Since they really did not do anything differently to actually earn it they will go and freely spend this money. They will feel 35% richer and will go shopping. They will get more credit cards, because now they feel they can afford it, a new car with higher payment, etc. In other words they will build a new more expensive lifestyle around that $15 hour pay. 

So temporary this will be good for the economy. But long term it is a disaster waiting to happen. Because we literally gave an $11 an hour person a lottery ticket to build a lifestyle of $15 hour person. 

When the economy slows down and it definitely will in the next 2 years this person very likely to lose their job. And now you will have a person with $11 hour skills apply for $15 hour jobs. The only problem is they don’t have a $15 hour skill.

Two things will happen:

They will be fortunate to find an $11 job, but unfortunately they will fall behind their bills of $15 hour lifestyle they have created.
They will refuse to accept anything less then $15 hour and no one will hire them. They will end up filing for unemployment and now the government will have to give them free money once again. Oh, wait, but now the government collects less taxes. The employment line could get very long very fast at the same time as the social security line (because of the aging population). Will the government have to chose between the two lines? Will their be enough money? Or will it be the great depression?

They tried to raise the miniumum wage in Canada and this is what it lead to:

A Curious Thing Happened When Ontario Hiked Minimum Wages By Over 20% by Tyler Durden
Mon, 01/08/2018 - 17:35

"Minimum wage hikes, and the inevitable job losses that result from them, are a consistent topic of conversation for us...here are just a couple of recent examples:

Seattle Min Wage Hikes Crushing The Poor: 6,700 Jobs Lost, Annual Wages Down $1,500 - UofW StudyStudy Finds Higher Min. Wages Bring Crushing Job Losses For Female And Minority Workers Harvard 'Shock' Study: Each $1 Minimum Wage Hike Causes 4-10% Increase In Restaurant Failures
Of course, no amount of empirical evidence (or common sense for that matter) will ever be sufficient to convince left-leaning politicians that basic economic concepts governing the relationship between supply and demand also apply to the market for labor. No, in the mind of politicians, every business ever created is an evil corporation owned exclusively by "millionaire, billionaire, private jet owners" who earn infinite profits and will casually accept whatever minimum wage hikes or tax increases are thrown at them...

That said, here in the real world, competition prevents corporations from earning excess profits (at least for an extended period of time anyway) and businesses respond to higher labor costs through capital investments designed to reduce labor (think ordering kiosks at McDonald's) and/or other cost cutting initiatives.

In fact, for the latest example of the unintended consequences of higher minimum wages, one has to look no further than a pair of Tim Horton's franchises in Ontario, Canada. Faced with a 21% hike in minimum wages starting January 1st, with hourly rates going to $14 from $11.60, owners of the two restaurants said they had no choice but to cut employee benefits and eliminate paid breaks to offset their higher costs. Per the Financial Post:

Employees at the Tim Hortons locations owned by the children of the co-founders of the franchise say they have reduced employee benefits and cut back paid breaks to help offset Ontario’s $2.40 jump in hourly minimum wage.

Jeri Horton-Joyce and Ron Joyce Jr. wrote a letter to employees at their two Tim Hortons restaurants in Cobourg, Ont., that those who want to continue receiving dental and health benefits will have to pay a portion of the plan’s costs themselves. Those working at the restaurant for more than five years will have to pay half, while those working from more than six months to five years will pay 75 per cent.

Employee breaks will also no longer be compensated, the letter dated December 2017 read. For example, those working nine-hour shifts will be paid for eight hours and 20 minutes, while those on three-hour blocks will be paid for two hours and 45 minutes.

“We apologize for these changes,” the letter, widely circulated on social media, read. “Once the costs of the future are better known we may bring back some or all of the benefits we have had to remove.”

Tim Horton

The alternative would be for the franchises to simply raise prices to offset their higher cost structure, which they did not, demonstrating how little confidence in pricing power businesses have despite the constant media cheerleading about the "coordinated global recovery."

Discussions about economic stability aside, such efforts only seem to further undermine the relative profitability of small businesses versus larger national chains and drive lower volumes as fewer people can afford to eat out."



The way we observe the "free tax money" is disbursed by the corporations will hurt the economy long term.

Unfortunately, our society and our citizens are used to “now” mentality.

“Let’’s have it all, lets have it now”.

Who can we blame? Our government has been a great role model.

First it was: “Let’s print money”, then it was “let’s print more money”.

Now at 20 trillion in debt, still printing.

Oh by the way, let’s just go totally crazy and give free money away.

This will definitely increase the deficit for the years to come!

If we are going to do it: Lets go all out! All the way!

Oh yeah, and let’s increase the rates! 
This way for sure we will never be able to pay the debt down.

What do you think is going to happen to the debt of this nation? 

There is no stopping to printing money a this point. 20 trillion dollar debt will look small 3 years from now when it will be at 50 trillion by 2021.

Free money will not grow the economy.

We have seen that from 2008 until the end of 2017, as I am writing this on December 29, 2017. The Fed injected 3.9 trillion in the economy and business are closing down throughout the country.

Increasing rates will make it impossible to ever pay the debt down.

As ridiculous as this may seem but in the next 5 years you will open the newspaper and you will read on the front page:
AMERICAN GOVERNMENT IS BANKRUPT.

As much as I do not want for this to happen, I think things have just gone too far. 
 
PETER SCHIFF, THE MAN HIMSELF
 who predicted the financial crisis of 2008 is here to tell you exactly what 2018 will look like:
 
Are you looking for ways to make money when markets go down?!
7. BITCOIN CRASH MAY TRIGGER THE MARKET CRASH IN 2018
 
More and more people are buying bitcoin and other crypto currencies by maxing out their credit cards.

It is very similar to how people were buying stocks on margin in 1929.

It is very similar to how people were getting multiple loans on multiple real estate properties in early 2000, which ultimately led to real estate buble and crisis of 2007 and 2008.

When the underlying value of the collateral decreases in value (which was stocks in 1929 and real estate in 2007-2008) the bubble bursts.

There are just too many reasons why bitcoin bubble will burst.

The fact that everyone is maxing out their credit cards (which by the way credit card debt is already at it's all time high at 1.1 trillion) could lead to a complete disaster.

You could visit the part of our site listing those reasons by clicking here..

The bigger question is could bitcoin crash trigger a stock market crash?


 
What this quick video...
 
When it was under a dollar, nobody believed it would hit $19,000 
now no one believes it will crash! Be ahead of the crowd!
 
8. BOND MARKET COLLAPSE MAY TRIGGER MARKET CRASH IN 2018

 
A major sign you can't afford to ignore: Morgan Stanley Sells All Bond Holdings, Warns Of Recession Risk
 
Tyler Durden of Zero Hedge writes "According to Morgan Stanley Wealth Management, it is too late to buy junk bonds in this market cycle, which is why one of the otherwise most bullish banks is cutting its high-yield bond holdings to zero, Mike Wilson, the CIO of Morgan Stanley Wealth writes in his 2018 outlook.

While tax cuts are expected to inject fresh momentum into high-flying stocks, the boost may be short-lived and mask balance-sheet weaknesses, Wilson wrote in his Wednesday note as discussed by Bloomberg. Wilson also believes - as do we - that all the Trump tax reform will do is accelerate the next downturn by "bringing forth the excesses we typically see before a recession."

“While the tax cuts just enacted in the U.S. may lead to better growth in the short term, they may also bring forth the excesses we typically see before a recession — which is something credit markets figure out before equities." As a result “we recently took our remaining high yield positions to zero as we prepare for deterioration in lower-quality earnings in the U.S. led by lower operating margins.”

With Wilson expecting operating margins to peak due to lower tax rates, rather than from rising sales and profitability, he now recommends selling yield and buying short-term fixed income.

And while the Morgan Stanley CIO does not except a recession in 2018 despite a mature market where making money becomes more difficult, as the cyclical peak approaches he warns that "investors should prepare for at least one correction in global stocks this year."

“We think it will be much tougher to make money in 2018 and 2019 than in 2016 and 2017 as the risk of a recession and outright bear market comes closer,” Wilson wrote. “Late-cycle dynamics have become even more evident.”

Furthermore, between tightening monetary policy and fewer positive surprises in earnings and economic data, any remaining upside is likely to be speculative, Morgan Stanley concludes."
 
Top Performing Hedge Fund Manager David Tepper on January 4th, 2018:
 
What?! Even Warren Buffet thinks bonds in a bubble?
 
watch this video...
 
Financial markets fall much faster then they go up. 
Don't miss your chance to profit!
ACT NOW!
 
9. US DOLLAR COLLAPSE MAY TRIGGER MARKET CRASH IN 2018

 
"De-dollarization" trend is in full mode.
 
The possibility of significant dollar devaluation is near.
 
Mark Keiser explains the inevitable dollar collapse:
 
watch this video...
 
Financial markets fall much faster then they go up. 
Don't miss your chance to profit!
ACT NOW!