10 Clues the Stock Market is About to Crash Again
The Dow Jones Industrial Average is currently off 7% from its April high and has broken decisively down through its 50 Day Moving Average — the Federal Reserve and economist have also described this current down trend as a “Soft Patch” but the markets are not so sure.
There are a confluence of factors suggesting the “Dow Jones Industrial Average” and many other global stock markets are about to collapse and 2011 is dangerously shaping up to look like 2008.
Here are the 10 clues that “Wall Street” is about to crash again …
1. Major banks are planning lay-offs.
2. Bad news reported day in and day out, lowering consumer confidence.
3. OPEC announces oil production level will not be raised, which also means oil prices are likely to go up this week.
4. Pimco’s co-chief investment officer, Bill Gross, is telling investors that for the Fed it will “be difficult to initiate a QE3,” but without artificial stimulation the U.S. economy may start really struggling again.
5. Moody’s warns it may downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.
6. Standard & Poor’s changes its outlook on US.government debt from stable to negative and warns U.S. could lose its AAA rating — and China has been dumping short-term U.S. Government debt.
7. US consumer confidence is lower than it was back in September 2008 when Lehman Brothers collapsed.
8. Mike Riddell, of M&G Investments in London, tells CNBC, “It seems that almost every bit of data about the health of the US economy has disappointed expectations recently.”
9. Nouriel Roubini warns about the next financial crisis.
10. 48% of Americans believe that it is either very likely or somewhat likely that the United States will experience a depression within the next 12 months.
If you think we’re in store for another financial crisis, tell us what you think.
Tags: 2008, 2011, 50 Day Moving Average, AAA Credit Rating, Bank of America, China, Citigroup, CNBC, Crash, Depression, Dow Jones Industrial Average, Federal Reserve, Financial Crisis, Lay-Offs, Lehman Brothers, Moodys, Oil Prices, OPEC, Soft Patch, Stock Market, Wall Street, Wells Fargo