USA: Wall Street: Will The U.S. Stock Market Crash Soon?

U.S. stock markets have experienced another brutal week. Inflation fear and soaring bond yields are some of the concerns that are trying to burst the higher stock valuation bubble. The Dow Jones Industrial Average, among two other stock indices—the S&P 500 and the Nasdaq Composite—is the only index holding on to its yearly gains. The fear is that we could see an even more intense sell-off that could crash the stock market.

Read more at: Will The U.S. Stock Market Crash Soon?

USA: Could Wall Street Crash: It's been years since investors have been this fearful of a stock market crash, Nobel-winning economist warns - by Shawn Langlois

Robert Shiller, a Nobel Prize-winning economist and Yale professor, urging a cautious approach to investing in the top-heavy stock market in an op-ed for the New York Times: “The coronavirus crisis and the November election have driven fears of a major market crash to the highest levels in many years,” Shiller wrote. “At the same time, stocks are trading at very high levels. That volatile combination doesn’t mean that a crash will occur, but it suggests that the risk of one is relatively high. This is a time to be careful.”

Read more at: It's been years since investors have been this fearful of a stock market crash, Nobel-winning economist warns - MarketWatch

US Elections: Why stock-market investors are starting to freak out about the 2020 election - by Mark DeCambre

 Less than a month and a half from the 2020 presidential elections and
investors are starting to get panicky about the race for the White House
and what that presidential contest means for already rocky markets in
the coming weeks



Read more: 

Why stock-market investors are starting to freak out about the 2020 election - MarketWatch

European Space Agency warns: China's Tiangong-1 space station 'will crash into Earth over Easter' possibly hitting populated areas- by Harry Pettit

China's out of control space station Tiangong-1 to crash on earth

China's out-of-control space station will crash into Earth this coming Easter weekend, according to the European Space Agency.

The agency's Space Debris Office has said Tiangong-1 will hit somewhere across our planet's northern hemisphere between March 30 and April 2.

Previous estimates suggested the rogue station, China's out of Cwhich is carrying highly toxic chemicals, would enter Earth's orbit on April 3.

According to experts tracking the station, it has the highest chance of crashing along a narrow strip around latitudes of 43 degrees north and south.

The ESA said crash date estimates were 'highly variable' and that its experts would be offering revised forecasts every couple of days.

'At no time will a precise time/location prediction from ESA be possible,' the agency's Space Debris Office, based in Darmstadt, Germany, said in a statement.

The doomed 8.5-tonne craft has been hurtling towards Earth since Chinese scientists lost control of it in 2016.

Experts believe most of Tiangong-1 will burn up upon reentry, but shards as large as 100kg (220lbs) could strike Earth.

Scientist believe that even in 'high risk' areas, the chance of being struck by Tiangong-1 debris is about one million times smaller than the odds of winning the Powerball jack. 

However, there is a chance parts of the station containing hazardous hydrazine could plummet into a highly-populated area.

Following Cities are listed as potential crash sites:

Barcelona	Spain	Milwaukee	USA
Beijing	China	Monaco	Monaco
Bilbao	Spain	Naples	Italy
Boise	USA	New York	USA
Boston	USA	Nice	France
Boulder	USA	Philadelphia	USA
Buffalo	USA	Pittsburgh	USA
Cannes	France	Punta Arenas	Chile
Chicago	USA	Rochester	USA
Christchurch	New Zealand	Rome	Italy
Cleveland	USA	Salt Lake City	Spain
Concord	USA	San Sebastian	Spain
Des Moines	USA	Sapporo	Japan
Detroit	USA	Sioux Falls	USA
Florence	Italy	Sochi	Russia
Istanbul	Turkey	Stanley	Falkland Islands
Kushiro	Japan	Toronto	Canada
Madrid	Spain	Trelew	Argentina
Marseilles	France	Valladolid	Spain

Read more: China's Tiangong-1 space station 'will crash into Earth over Easter' | Daily Mail On

Stock Market Crash ? : Top Economist Says a Drop Is Coming - by Mark Zandi

If you are a stock investor, buckle in.

Investors have enjoyed an amazing run. Stock prices are up by nearly a third over the past 18 months and seem to be hitting new record highs daily. And the run-up has been almost a straight line, with stock price volatility—the ups and downs in prices—the lowest it has ever been.

But if you are an investor, soak all of this in, because it will soon be nothing but a memory. The stock market is due for a significant correction—defined as a greater than 10% decline in stock prices—and stock returns in the next several years will be very pedestrian if they increase at all.

It’s not that the stock market is a bubble ready to burst. Bubbles are created by speculation, when investors buy a stock simply because its price has risen strongly in the recent past, and therefore conclude it will rise strongly in the foreseeable future. This clearly characterized the tech bubble that inflated around Y2K. Investors piled into the stocks of dot-com companies, many without even understanding what the Internet was. Most of the companies weren’t making any money, and few had business models that seemed likely to ever generate profits. That bubble was also fueled by margin debt, as investors borrowed aggressively against their stock holdings to purchase even more stocks.

So why am I pessimistic? The stock market is overvalued. That is, stock prices are much too high despite the good outlook for corporate earnings. The only other time in the past half century that stock prices have been so highly priced was during the tech bubble. Yes, they’re even more overpriced now than prior to the 1987 market crash.

Corporate earnings are good, but they are set to grow more slowly, since businesses will have to give their employees bigger pay increases to hold onto them, let alone hire new workers. 

With unemployment falling toward 4%, wages will slowly, but steadily accelerate. Businesses will respond by raising prices more quickly, but they won’t be able to pass through all of their higher costs to customers. Margins will come under pressure.

Intensifying wage and price pressures means that the Federal Reserve will need to raise short-term interest rates more consistently, and begin to wind down its balance sheet, which will cause long-term rates to rise. It is hard to see investors being as enthusiastic about stocks when interest rates are rising. 

Higher rates will also make it more expensive for businesses to borrow money to buy back their stock, a common practice in the current bull market.

Then there is Washington. So far, the dysfunction there hasn’t been a problem; it has only meant that lawmakers have done nothing. That is fine for a growing economy. But doing nothing won’t be a winning strategy for much longer. 

Lawmakers must soon agree on a budget or risk shutting the government down, and they must raise the Treasury debt limit or risk shutting down the global financial system. Tax reform would be nice, but odds are that if there is reform it will fall short of what investors desire.

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Of course, there is no timing a stock market correction. It could happen tomorrow, next quarter, or next year. But that time is at hand.

The author of this report is Mark Zandi is chief economist at Moody’s Analytics. He has investments of all of the companies mentioned in this article.

Read complete report by clicking here: Stock Market Crash: Top Economist Says a Drop Is Coming | Fortune.com

Global Economy: To Avoid A 2016 Crash, The Major Powers Need To Pull In The Same Direction - by Anton Muscatelli

It looks already as if 2016 will be a pivotal year for the world economy. RBS has advised investors to “sell everything except for high-quality bonds” as turmoil has returned to stock markets. The Dow Jones and S&Pindices have fallen by more than 6% since the start of the year, which is the worst ever yearly start. There is a similar story in other major markets, with the FTSE leading companies losing some £72bn of value in the same period.

 These declines have come on the back of a major shock to the Chinese stock market. China’s stock exchange is very different from that of other major economies, as Chinese companies don’t rely on it to fund themselves to the same extent, using debt instead. All the same, the repeated suspensions of trading as the Chinese circuit-breakers came into operation (as they do when share prices fall too sharply) spooked investors around the world.

 On top of that we are seeing commodity prices continuing to retreat. Oil prices have dropped towards $30 per barrel and don’t look likely to increase soon, with Iranian and Saudi oil production continuing to sustain supply. We are seeing many emerging economies dependent on petroleum revenues suffering (Brazil, Russia), and there is speculation that many oil producers (and perhaps even Saudi Arabia) are having to abandon their currencies’ link with the US dollar.

 It would be good if, in 2016, we began to see greater macroeconomic cooperation between the G20. In an ideal world, the G20 economies would seek to share out the effort of sustaining world demand through targeted public investments designed to restore business and consumer confidence. We saw this very briefly immediately after the financial crisis. Since 2009 there have been no attempts to act collectively on fiscal policy. Those days seem unfortunately very distant now.

Read more: To Avoid A 2016 Crash, The Major Powers Need To Pull In The Same Direction

Is an economic meltdown on the way ? - 80% Stock Market Crash To Strike in 2016, says Economist Davidson Warns

Is a Stock Market Crash Coming?

Several noted economists and distinguished investors are warning of a stock market crash. economic meltdown

Billionaire Carl Icahn, for example, recently raised a red flag on a national broadcast when he declared, “The public is walking into a trap again as they did in 2007.”

And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.”

Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively.

Former US  congressman Ron Paul didn’t mince words either. He warns that the stock market’s “day of reckoning” is fast-approaching. When that day comes, he doesn’t think it’s just going to be a correction; it will be “stock market chaos.”

But there is one distinct warning that should send chills down your spine … that of James Dale Davidson. Davidson is the famed economist who correctly predicted the collapse of 1999 and 2007.

Davidson now warns, “There are three key economic indicators screaming SELL. They don’t imply that a 50% collapse is looming – it’s already at our doorstep.” And if Davidson calls for a 50% market correction, one should pay heed.

Davidson predictions have been so accurate, he’s been invited to shake hands and counsel the likes of former presidents Ronald Reagan and Bill Clinton — and he’s had the good fortune to befriend and convene with George Bush Sr., Steve Forbes, Donald Trump, Margaret Thatcher, Sir Roger Douglas and even Boris Yeltsin.

Note EU-Digest: In his new somewhat controversial advertising video presentation, Davidson promotes a variety of suggestions to help you better understand and decide what to do.

EU-Digest