Pop quiz, name the top performing asset class of thus far this year?
If you guessed US stocks or bonds, you’re wrong. The top performing asset class hands down is Emerging Market stocks, followed by Gold, THEN the S&P 500, following by Treasuries and finally, Oil.
By the way, if you think the $USD is a big winner, think again, it's down 2% YTD.
Using this as a framework, let’s ask ourselves, “what macro environment would cause these respective performances? What would induce a sharp rally in Emerging Market Stocks and Gold… with US stocks trailing, the $USD down and Oil down sharply?”
Oil is telling us that growth is actually very weak, while Gold and Emerging markets and bonds are telling us inflation is picking up (a weak $USD sends Gold and Ems higher while it would depress bonds).
Weak growth and higher inflation… that’s called STAG-flation.
Meanwhile, the financial media is proclaiming that 2017 will be the year of major $USD strength and a roaring US economy.
Well, the markets argue otherwise. Who do you think knows more…some “guru” on CNBC or the collective intelligence of hundreds of millions of investors?
Indeed, by the look of things, stocks could be heading for a crash in the next few weeks. Remember, stocks LOVE inflation at the beginning (think the last 12 months), but eventually it erodes profit margins and forces them down.
On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
We are giving away just 99 copies of this report for FREE to the public.
To pick up yours, swing by:
https://www.phoenixcapitalmarketing.com/stockmarketcrash.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research