Is The Stock Market Really About To Face an "Epic" Downturn? By Gregory Mannarino

in #money8 years ago

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If you have been following the mainstream financial channels, it seems that more and more Pundits are warning of some upcoming event which will affect the stock market and subsequent investors and a very negative way.
The newest heavy hitter to jump on this bandwagon is Ray Dalio, Who is the founder of the worlds largest hedge fund with over 100 billion under management.

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Billionaire Hedge Fund Manager Ray Dalio.

It is certainly no secret that I myself have been warning that somewhere down the line we are going to face A moment of truth in not just the stock market, but across the spectrum of every single asset class. Is also very evident to me, and I am sure to you as well if you have even the most basic understanding as to how financial markets work, that we are living in and environment of distortions unlike anything we've ever seen in the history of the financial markets.

Here's the kicker.
Personally the more I hear from the mainstream financial Pundits talking negatively about the stock market, the more I believe we need to take the opposite side of the trade. Do not get me wrong, people like Ray Dalio need to be listened to, and in no way am I saying he is wrong.

If you know my work at all, I have been saying for years that the current financial fantasyland environment that we are living in will correct the fair value, this is a mathematical certainty however, the timing of this event will continue to remain elusive.

Gregory Mannarinome steem.png

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Five companies in the SP are keeping it in the green. There's already an invisible crash, invisible to those following indices

We have become indices and chart watchers. Thanks for the heads up.

The downturn coming is very easy to predict. If the top holds here we are up for some slide back to before the Trump Rally.

https://invst.ly/3y92mds

Please visit my page and blog for more investing advice i will be posting new content on a regular basis on my blog.

Always trying to keep us informed and ahead of the game. I have been following you for over a year now and not one bad video or article. Have a great weekend. I remember you saying that you where going to take the weekend off!

Nice article. Thank you for suggesting Steemit. I am a member now and have listened to you on Youtube for about a year now. Thanks for keeping us informed.

Hey Greg Sorry to bother but I have been on Steemit for a week. but want to know how I may contact Steemit by phone or email? Do you have them? i have seemed to acquire more steem in points but it is not reflecting in my account dollar value? Wonder if my acct got messed with.

There is not really a central account to contact. Don't worry about the account value stuff. Steem is a volatile commodity at the moment. If you are gaining more Steem Power and Steem Dollar tokens, you're fine. It takes more than a week to get a feel for the ecosystem, so don't sweat it.

Great post Greg like always, I agree with your thesis that usually the opposite of what the mainstream says happens.

Excellent interview with Dave at X22. Is he hear on steemit? Thanks.

Last Thursday and Friday (5/11 and 5/12) may have been the beginning of the correction. Corporate insiders have been selling for a while. Who's going to buy? The Federal (not really federal) Reserve? The Swiss National Bank?

Could it be that the corporate insiders have now got out and ready for the correction. As usual everyday Joe will get creamed and the insiders will get to ride the market back up again.

I like your new avatar pic, Greg!

Thank you. Someone here on Steemit drew that!

You just need a big fat Cuban cigar in that drawing.

Hi Gregory,

Don't you see a sort of rotation? Small stocks up, divest from some big one (but just partially), money moving from Europe despite "Macron joy", money fleeing from Japan/Asia to US... and so on. So while there is a net influx in USD and in any type of American investments there is also a reallocation between DJ and Nasdaq, between big and mid or small caps... do you see this or my guess is wrong?

Hello Everyone.

I recently joined steemed by encouragement of the great Gregory.

I will be posting (at bare minimum) weekly positions of commodities (mostly silver and gold). Please follow and upvote guys, lets take down the banks globalists together.

I will of course follow back.

Cheers guys and thank you for showing me steemit.

Link to my first ever post!

https://steemit.com/trading/@flemming/silver-and-gold-weekly-outlook

Since I met you I have tried to keep up, before i had no clue. :)

Yayy Gregarino you made it over to Steemit! Whoop whoop! That's my boyy! Love you G-man! Xxx

Love you back! Thank you.

as always thank you for the great info Greg! Enjoy your weekend.

Thank you! You as well.

This brings to mind George Soros' theory that markets are reflexive, further that it is best to take the opposite side of a trade than everyone. Is this what you are explaining or am I way off Greg?

Whatever the mainstream tells you, do the opposite! I don't think you can go terribly wrong with that strategy. Just be careful and hedge. And protect yourself with physical Gold and Silver!

I have just started to follow you on Youtube , your site and now Steemit after listening to your video's. You seem sincere. At my old age learning is fun since being retired.

Greg Thank you for keep on giving uss a proper inf. I'm a newbie .However I'm deeply committed in the precious metals for a long time now.Just started with steemit !!!!

Master Gregory,
I really appreciate you and your perspective. My perspective is: Age and circumstance tell me not to play in a game which I believe will hurt if I fail to see the exit sign. I do not mind if you feel differently, rather I wish you good fortune!

Dear Greg, first I want to thank you for everything you are doing to explain to us what is really going on in the financial world.
I think Mr. Dalio is one of the smartest people in the financial area.
I just love one of his quotes that is very important to understand at this very sensitive time "There's no sensible reason not to have Gold, other than you don't know history and you don't know the economics of it."
Have a great weekend

I think the stock market is one of the potential bubbles to burst and start the next round of recession following the federal reserve's unceasing inflationary "stimulus" efforts. I agree that we don't know when it will happen, or what the next trigger will be. Student loan defaults are another possibility as the economy continues to stagnate.

Great video - but what about falling PMI for USA and China, and stagnant tendency in PMI for a lot of develompent markets (like Germany and Japan)? Morover, margin debt and Warren Buffet reperesent extreme high level.
https://www.advisorperspectives.com/dshort/updates/2017/05/02/a-look-at-nyse-margin-debt-and-the-market
Next issue, it seems that from December investos prefer bonds than Russell2000
http://stockcharts.com/c-sc/sc?s=%24RUJ%3A%24UST&p=D&yr=0&mn=6&dy=0&i=t32816740387&r=1494704757493
Although, Nasdaq is all time high, but is overbought and its volume is falling - I think that if Nasdaq go down and break level 5610 - 5620, it will be better be out and buy bonds.
http://stockcharts.com/c-sc/sc?s=%24NDX%3A%24UST&p=D&b=5&g=0&i=t69483183756&r=1494704860029

When the fed drops the hammer it will correct

I personnaly don't think an epic downturn in the stock market is going to happen yet. there will be some kind of government action that will prop up the market as there always is.

Great to see you join here too :)

Ok. Found you. Had to use search.

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When markets correct to fair value, it will be sudden, swift and ferocious, the likes of which has never been seen before. There'l be little, if any warning of it's arrival.

The great George Carlin used to say “It’s a big club and you ain’t in it”.

They only say or do things to benefit themselves and does not have our best interest at heart. Only those in the “club” know when the next big event is going to happen. I will be listening to Greg for his take on things and not to the noise coming out of the market.

I have been waiting for a downturn to get back in this market but it just never happens. How much longer can this market continue to rise until there is some sort of major correction??

I agree on not attempting to time the eventual crisis because, as Jim Rickards often says, there is really no point in trying to identify the 1 snowflake which will cause the avalanche. The truth is the avalanche is coming bc the system is unstable.
Everything has been deformed since Greenspan put interest rates to 1% following the tech bubble. All price discovery mechanisms are gone. There is no market that is at fair value.
By any metric: interest rates, stock EPS, PE ratios. The CAPE/Schiller PE, real unemployment, labor participation etc. we can see that this economy is not in a recovery but as I have said before, we are in a cyclical recession inside a secular depression.

Gregory, you're definitely right in saying that doing the opposite of what the mainstream says to do is a much better option than being one of the sheep! Almost everything mainstream is an inversion of the truth.

Gregory Mannarino, Ive read that there are now more ETFs than there are stocks. It seems like this would potentially be like a time bomb if the market turns soft in a hard way. As people exit an ETF they will be exiting many stocks ar the same time taking down what miggt be good stocks caught up in the storm. Some of the ETFa are 2x or 3x leveraged which may cause margin calls even faster. I feel like there is potential for a crash that goes well below fair value as positions unwind, then possible a spike back up above fair value before returning to fair market value. Could be big money made when this finally falls apart.