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2019 MARKET MELTDOWN: What The New Year Brings
2019-market-meltdown-social.jpg

If history is our guide, we are on track for a severe market meltdown in 2019. While the U.S. broader indexes remained in record territory for most of 2018, December turned out to be a complete disaster for stocks. So, even though the markets have reversed higher from their Christmas Eve lows, this is nothing more than a bear market rally.

It’s really that simple. Thus, all the hype about “Fed Market Rigging” to push the markets up a record 1,000 points following the Christmas Eve massacre, becomes white noise as markets always correct higher after a massive selloff, with or without the Plunge Protection Team (PPT). Furthermore, the notion put forth by members of the Alt-Media suggesting that the Fed rate hikes will cause another market crash, and wealth transfer makes no sense in an EROI Collapse (Energy Returned On Investment).

As the EROI of the oil industry falls even lower with the addition of oil sands and shale oil, there will come a time when the economy and market will disintegrate due to a lack of profitable net energy. In this future net-energy-starved economy, most ASSETS will become LIABILITIES. So, the lousy conspiracy that the Fed is using their “rate hike policy” for the “grand elite wealth transfer,” needs to be thrown in the waste-bin for good.

Folks, it’s time to stop focusing on lousy conspiracies and figure out what you are going to do when energy becomes a real problem.

Unfortunately, hype and conspiracies sell a lot of books and subscriptions because they are more exciting than facts, data, and information. It seems to me that a large number of the Alt-Media followers are being misled just as much as their Mainstream media counterparts. However, they don’t realize it… LOL.

Okay, let’s get back to the 2019 Market Meltdown.

2019 MARKET MELTDOWN: Bigger & Better Than Ever

The main reason the broader markets are likely to crash in 2019 has to do with the simple fact that the BOOM CYCLE is OVER. We can spot this quite clearly in the unemployment chart below:

U.S. Unemployment Rate (2002 - 2018)

Anytime the U.S. unemployment figure is at a low, the cycle rolls over, and the fun begins. Yes, I realize the U.S. unemployment figures are manipulated. I have read the data from John Williams Shadowstats.com. However, if we go by the manipulated data, it still provides us with a reliable indicator… and that is, low unemployment is not a positive indicator for the economy.

 

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