Friday , 22 September 2017


Goldman Sachs' Leading Indicators Signal Steep Market Crash Ahead

Goldman Sachs reports their Global Economic Indicators (GLI) show the world has re-entered a contraction and…is predicting a market crash worse than that of the early 90′s recession and one slightly less than the sell-off at the turn of the millennium. [Below are graphs to support their contentions.] Words: 250

So says Alexander Higgins in excerpts from his original article* at http://blog.alexanderhiggins.com.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This, and the preceding paragraph, must be included in any article re-posting to avoid copyright infringement.

Notably, [as can be seen in the graph below] the GLI turned negative ahead of the Internet bubble bursting at the turn of the millennium and far in advance of the Financial Meltdown of 2008.

The angle at which we entered this Contraction phase is worse than the angle preceding last year’s crash ahead of the Debt Ceiling crisis crash [see graph below] and almost on par with the angle at the bursting of the Internet bubble in 2000.

 

If there is any consolation, the angle is notable less than the recession’s of Bush senior and the Financial Crisis of 2008. However, Goldman’s research is predicting a market crash worse than that of the early 90′s recession and one slightly less than that of the turn of the millennium sell-off.

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The business cycle shifted into the Contraction phase of Goldman’s ‘Swirlogram’ framework [see below] in the past month…

which has negative implications for forward 12-month S&P 500 returns [as revealed in the graph below].

As Goldman notes: “We think that the macro data are providing a clear signal and, hence, we think a negative bias remains warranted”. Source: Goldman Sachs from Zero Hedge

*http://blog.alexanderhiggins.com/2012/06/07/goldman-sachs-leading-indicators-signal-steep-market-crash-142421/ (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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