All Signs Point to Market Meltdown

By Wayne Mulligan, on Thursday, August 15, 2019

I hate to say “I told you so,” especially in a situation like this…

But as I explained last week, one of our key market indicators recently flashed red.

Then, yesterday, the Dow crashed 800 points. It was its worst day of the year.

And the scary part is, this could just be the tip of the iceberg.

So today, I’ll show you three different indicators we’re tracking…

Then I’ll explain why they’re all pointing to a potential market meltdown!

Indicator #1 — This Signal Is Flashing Red

As I showed you last week, one of the most accurate ways to gauge the market’s health is to use an indicator called Earnings Yield.

Basically, this metric reveals how much the market is “yielding” in terms of profits.

When the yield is high, the stock market is attractive for investors.

But when the yield is low, stocks are unattractive — and more likely to crash.

And when the earnings yield drops below a certain level, it can indicate that we’re about to experience a major market correction.

Unfortunately, it recently hit that level…

Which is why it’s no surprise that the market tumbled.

Indicator #2 — More Pre-Crash Indicators

But the earnings yield isn’t the only indicator we’re looking at right now…

Recently, a number of other signals have also started pointing to a meltdown.

For instance, over the past decade, the number of personal bankruptcy filings has steadily declined. But recently, there’s been a major a shift in this trend…

This year, we’re on track to hit 796,000 bankruptcy filings — that’s tens of thousands more than last year.

And as it turns out, there’s a good reason for this increase…

Indicator #3 — Consumer Debt is Out of Control

Americans are currently sitting on $14 trillion in household debt.

That’s $1 trillion more than during The Great Recession a decade ago.

For many families, paying down that debt on top of their ordinary household bills is simply too much to handle.

But individual American citizens aren’t the only ones in trouble here…

U.S. businesses are facing a mountain of debt, too — and to get things under control, they’re being forced to make some tough decisions.

For example, according to a new report, roughly 43,000 jobs have been lost in 2019 due to corporate bankruptcies — that’s 20% higher than last year!

History Repeating Itself?

We’re in a bad place right now:

Earnings yields are indicating rough times ahead for the stock market…

And consumer debt levels and bankruptcy filings are indicating nasty economic trouble.

Very few bright spots exist in the market or the economy today.

Which is why we believe a long and drawn out correction could take hold at any time.

And that’s why we believe investors like you need to get prepared

Prepare Yourself!

To help you get ready, we’re planning to host an exclusive event next week…

If you’re a Crowdability reader, it’s 100% free to attend.

So, if you’re worried about the direction of the market and the economy…

And you’d like to learn how to protect yourself, your portfolio and your family…

Then simply click here now »

Best Regards,
Wayne Mulligan
Wayne Mulligan

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Tags: Stock Market Recession