Sunday 15 December 2013

Emphasis on Russell2k

I'm posting 3 charts on Russell2k which is showing some clear signs of weakness but that weakness needs to be confirmed next week with a strong breakdown. 
The next chart shows how ridiculous the economy is run at the moment. Corporates have become parasites living off the economy and the people but as all non-treated parasite invasion they will soon kill the host. You can't think about corporates without consumers that buy their goods and at the moment there is no buying power left in them. The divergence between the two has never been larger in history. This can't end well. 
The second striking chart today is the corporate profit projections in the next 4 years. If you read mainstream media analysts almost all of them agree that the current profit levels will stay constant for a long time and there cannot be any significant correction. Well this chart begs to differ; The profit rate growth will hit negative levels in the next 2 years and stay negative even further. I don't know how anyone can dispute this chart. (Source here)

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