At the end of Shemitah 5775, $11 trillion in global stock market wealth was wiped out. Since then, there have been some signs of a strong recovery.
Are we out of the woods?
Jay Peroni, the chief investment officer at Faith-Based Investor and author of Blood Moons on Wall Street, says the following indicators suggest the answer is no. The recovery is merely the calm before the storm.
- The number of advancing stocks versus declining stocks has dropped.
- The total number of advancing stocks also declined.
- Earning expectations are the worst on record since the Great Recession.
- Obama is expected to sign into law a new budget on Monday that would increase the national debt to $20 trillion by the time he leaves office in 2017—double the amount when he took the oath in 2009.
- U.S. third quarter gross domestic product rose at just 1.5 percent, far below the 3.9 percent growth rate during the second quarter.
- U.S. exports have fallen over 11 percent this year—lining up with prior recessions.
- Manufacturing activity, a good indicator of overall financial health, has steadily declined in the U.S. and China—the largest economies in the world.
- Nations throughout the world are keeping their countries propped up solely through central bank stimulus—keeping interest rates artificially low and printing more money to stimulate economic growth.
- The International Monetary Fund has warned the world economy could crash if central banks do not continue their low interest rate policies.
- Tensions with Russia and Syria could erupt into a much more global war, disrupting world stability.
- The refugee crisis in Europe could make an already fragile economic crisis much worse.
If Peroni is right, the worst is yet to come.