November 13, 2018

Warning: It's "Late 2007" For Stocks... We All Remember What Comes Next

The markets are about to enter liquidation mode.

The Fed has made it clear that the only market event that would force it to stop hiking rates would be a collapse so massive that it impacts consumer spending. This means a 2008-type event.

By the look of things, we’re on our way towards that. The single largest financial transaction for most Americans is the purchase of a home. With that in mind, consider what the homebuilder industry is telling us about consumer appetite.

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If you're looking for a sign of what's to come for the overall market. This is it. The stage is not set for a bloodbath as stocks meltdown to 2,100.

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If you want a template for where we are right now, it's "late 2007"... which means 2019 will be when the next crisis hits.

Best Regards.

Deo Talaverano.

Chief Market Strategist DHF.

George Town. Cayman Islands.