Hello Folks
Clearly things have not started well this new year. I actually want to discuss and post more than I can right now, I will attempt to do that over the weekend. Long story short, increased selling (distribution) is coming into the indexes and markets are (in all of my indicators and analysis) headed further lower. I remain 100% G-Fund. Note: Jan 07 (Thursday) market action is potentially going to be very bloody, as tonight, China markets have suspended trading due to volatility concerns and “Circuit Breakers” being activated in their computerized systems. I have mentioned on this site previously my concerns with Chinese economic data (they self-report, no outside verification) and their Chinese version of the US Housing Bubble. I even labeled China my “big worry” in regards to things affecting the market, in my November 15, 2015 post.
I stated:
“….In addition, me, personally, I have other concerns about the market. One big worry I have is “China”– my opinion is China today, is what USA was in 2007. My opinion is the economic situation in China is very similar to our Sub-Prime mortgage crisis of 2007-2009. In addition to China’s housing situation, their GDP has slowed to 6.9%, which is below the desired 7% rate, the first time it has been below that level since 2009.
Chinese authorities have cut Chinese interest rates numerous times, and this has had little, if any, positive impact on their economy. So we have numerous data sources which reflect that China is slowing down. With that said, like the SARS Virus, a flu in the Chinese markets can (and will) infect the rest of the world.”
In my November 5, 2015 post, I discussed my concerns with the integrity of Chinese data and economic reports:
“…Numerous things continue to challenge the markets, some of which are:
- Difficult to verify economic reports from China, a Communist country, reflecting a slowing Chinese economy. Some believe that if the data could be fully vetted, the data would be much worse….”
Next update, more detailed, in the next couple of days. I remain 100% G-Fund.
Thank You
-Bill Pritchard
