Wednesday, August 23, 2017

BANG Wall Street Banks Warn Downturn Is Coming

HSBC Holdings Plc, Citigroup Inc. and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle, reports Bloomberg.

These banks have things about half right. I wrote this in the EPJ Daily Alert four weeks ago:

Given the dip in money supply growth that occurred last week, (SEE: ALERT: Signifcant Drop in Money Supply Growth), the possibility that we will get hit  pretty hard later this summer/early Fall with a significant downswing in the US stock markets has increased.

Thus, I am advising that profits be taken in 3 positions. 2 in the EPJ Model Portfolio and one in the Risk Tolerant Aggressive Recommendations.

And I do mean profits, since all three positions are at all-time record highs.

But I also wrote this in that same ALERT:
At this time, I do not expect a downturn in the stock market to develop into a full-blown recession. Thus, when panic is at its peak, I am likely to be advising to spend some of the portfolio cash hoard to add to positions.
To get my full analysis of what is developing there are four ways to subscribe to the EPJ Daily Alert, CLICK HERE for details.

Note: Past spectacular forecasts do not mean future spectacular forecasts.

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