After the Shemitah: Are we out of the woods yet?

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?

Shemitah economic collapse banner

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.

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1 Comment

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One response to “After the Shemitah: Are we out of the woods yet?

  1. Increasingly I believe we need a strong “money man” as President to lead us away from this international cliff. We’ve borrowed far too much for far too long.

    And we were so close. Love him or hate him, but we can all agree Romney was NOT a career politician. Through his work at Bain Capital, as well as great leadership at the Salt Lake City Olympics, he was perfectly positioned to address our generational fiscal malfeasance. Alas, we Americans decided to go another way … it’s hard to beat the FSA.

    Now we have another candidate, even less a career politician and more a businessman than Romney, who may be able to address our wanton monetary ways. At the very least Trump knows his way around a dollar.

    Who could have predicted a cartoon might be our Moses?