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Warning: Financial System Entering “Late 2007” Stage

By Phoenix Capital Research Stock MarketsOct 10, 2018 09:12AM ET
www.investing.com/analysis/warning-we-are-entering-the-late-2007-stage-for-the-financial-system-200347834
Warning: Financial System Entering “Late 2007” Stage
By Phoenix Capital Research   |  Oct 10, 2018 09:12AM ET
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It’s looking more and more like 2007 all over again.

Once again, the economy appears to be roaring as it enters the late stages of a major credit expansion. Once again this late stage credit expansion is entering the inflationary blow off top. And once again, “growth” sectors of the markets are flashing that big trouble is lurking just beneath the surface.

Weekly S&P 500 Vs. Homebuilders
Weekly S&P 500 Vs. Homebuilders

Take a look at homebuilders vs. the S&P 500. Does this scream “explosive growth” to you?

How about copper, the commodity so closely aligned with economic growth than it’s called “Dr. Copper.” Does this chart scream “roaring growth underway”?

Weekly S&P 500 Vs.Copper
Weekly S&P 500 Vs.Copper

And finally, take a look at Lumber vs. the S&P 500. Here again, we see that while stocks continue to hang on to all-time highs… an asset class that is closely aligned with REAL growth has completely imploded.

SPX Weekly Chart Vs. Lumber
SPX Weekly Chart Vs. Lumber

The above charts are telling us we’re now in the “late 2007” stage for the financial system.

We all know what came next…

If you are not already taking steps to prepare for this, we offer a FREE investment report outlining when the bubble will burst as well as what investments will pay out massive returns to investors when this happens. It’s called The Biggest Bubble of All Time (and three investment strategies to profit from it).

Warning: Financial System Entering “Late 2007” Stage
 

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Warning: Financial System Entering “Late 2007” Stage

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