Global Economic Cracks Widening . . . .

[TechAnalyst]

Economic reality continues to bubble-to-the-surface . . . .

Global economies appear slowing to 2008 levels. U.S. retail sales were a disappointment this morning hinting the consumer is not in a spending mood. Debt is beginning to have some meaning. Consumerism is the key glue for the U.S. economy while manufacturing continues to underperform. Trade war now taking a huge toll on China, the U.S. and global economies.

Japan's economy is on life support with few options.

The EU may not be the EU in five (5) years. Germany now in a deepening recession.

Low interest rate policy and negative rates no longer offer life-support . . . central bankers have simply shot-their-wad with little left in-the-barrel to manipulate markets. And now stir in political leaders with limited economic knowledge . . . .

Equity markets may be at-risk of another late year pullback (IMO). An opinion for what it's worth . . . .

Given how much time and effort goes into building a well balanced portfolio and how difficult it is to abandon it, it's worth pointing out that there is price insurance available for equities as well.

When it appears the risks are serious enough to spend money on protection, put options can be purchased giving you the right to be short stock index futures.

Should there be a significant setback in equities, you would still have your portfolio intact at a lesser value but the loss would be offset by a gain in the put option value.

Something to keep in mind...

[furrowtickler]

The truth of this statement is lost on the masses.

The overwhelming, vast majority of Canadians - likely could include the population of all Western nations - do not have a clue about the U.N. agendas.

Even among Conservatives, most likely believe in the idea of "benevolent government".

The left, however, are just simple fools who think that the progressives are the characterization of caring, when nothing could be further from the truth.

The malevolent goal of the elitist left is to grind down and pulverize western democracy into a malleable pulp, just as Lenin, Stalin and Mao did to their respective peoples.

An independent and free people cannot be subjugated.

Trudeau is the embodiment of evil.

X2 .......

[errolanderson]

Lots of chatter in markets that U.S. rates are now headed to . . . “0”.

This suggests Bank of Canada may head toward negative rates like Japan and Europe within the next 18 months.

[bucket]

Do negative rates force the saver to look for investments that have a return??? Like farmland????

$100000 dollar quarter of land returning the taxes and 3000 plus some potential capital gain looks better than negative rate....right????

So there are some tools left for the global market??????????

[errolanderson]

Do negative rates force the saver to look for investments that have a return??? Like farmland????

$100000 dollar quarter of land returning the taxes and 3000 plus some potential capital gain looks better than negative rate....right????

So there are some tools left for the global market??????????

Low rates have already contributed to asset bubbles over the past five (5) years . . . luxury real estate, art, classic cars . . . but these bubbles are now deflating rapidly.

Manhattan real estate now under heavy selling pressure, due to vanished Chinese buying. Barrett Jackson classic car auction values have had a tune-up. Trade war tariffs creating heavy damage to markets (IMO) . . . especially asset bubbles.

Stock markets continue to simply be a parking lot for money, being supported by corporate buybacks, not earnings. But the Dow now appears stalled out in 2019, treading water right now. There might not be a huge traditional crash in markets . . . rather a very long and prolonged sag in markets heading into 2020 and beyond.

Farmland? Slowing global investment and trade tensions don't favor a near-term recovery (IMO).

'The Great Financial Sag' is now underway . . . .

[quadtrac]

Low rates have already contributed to asset bubbles over the past five (5) years . . . luxury real estate, art, classic cars . . . but these bubbles are now deflating rapidly.

Manhattan real estate now under heavy selling pressure, due to vanished Chinese buying. Barrett Jackson classic car auction values have had a tune-up. Trade war tariffs creating heavy damage to markets (IMO) . . . especially asset bubbles.

Stock markets continue to simply be a parking lot for money, being supported by corporate buybacks, not earnings. But the Dow now appears stalled out in 2019, treading water right now. There might not be a huge traditional crash in markets . . . rather a very long and prolonged sag in markets heading into 2020 and beyond.

Farmland? Slowing global investment and trade tensions don't favor a near-term recovery (IMO).

'The Great Financial Sag' is now underway . . . .

I’m not saying you’re wrong and do appreciate your posts but honestly how long have you been predicting this type of stuff? You’ll be accurate one of these years I’m sure. But meanwhile life will go on either way.

[Taiga]

Regarding real estate, nothing is selling near me. Residential or farm. People have been living on savings for the last few years, depleting them. Maybe things will turn around after this election and once great industries can resume business. Money has fled this country for the US in massive amounts. Texas is absolutely booming.

[malleefarmer]

I’m not saying you’re wrong and do appreciate your posts but honestly how long have you been predicting this type of stuff? You’ll be accurate one of these years I’m sure. But meanwhile life will go on either way.

Actually reckon Errol has been very close to the mark.

Commodities to be subdued.

Whilst we all want better grain prices old be getting toppy especially wheat. Basis narrowing here in oz

[Guest]

can't go any lower here , below the cost of production

[errolanderson]

I’m not saying you’re wrong and do appreciate your posts but honestly how long have you been predicting this type of stuff? You’ll be accurate one of these years I’m sure. But meanwhile life will go on either way.

quadtrac . . . You don’t have to look very far to see bizarre economics of runaway government spending and consumer debt and it’s devastating impact on our business growth and on the next generation. What I have seen is a slow moving freight train that has already crashed into an economic brick wall of debt. Central bankers are now ‘pushing on a string’. They are TRAPPED, and they know it. But you don’t want to spook the investor, heaven for bid.

Negative rates? Where did that come from? But everything is A-OK because the stock market is doing so damn good. But everyone’s net worth is now in-decline. How ‘s that hang together? And how come prices are deflating? That’s not so rosy. And negative rates only means there is a growth less future, particularly for consumers.

Yes, I have been breaching this for years as it could be seen from a long way’s away. What has delayed the impact is pure manipulation, not economic growth. We are drowning in debt, pure ‘n simple. And cheap money no longer works. And this reality has already hit and it is now hitting hard . . . .

The crash of 2008 has never been repaired in-full. Not a chance. The can has just been kicked down the road . . . Now the can has been kicked into the ditch.