Plus, the quality of global debt is "deteriorating rapidly"
Choosing which of the 31 Baskin Robbins ice cream flavors you'll order is a breeze versus picking an investment vehicle.
It doesn't matter whether you're bullish or bearish on a given financial market, the number of choices is overwhelming.
Get this from Money Observer (Jan. 24, 2018):
There are nearly 3.3 million stock market indices around the world, according to new research from the Index Industry Association (IIA).
In 2009, there was only one cryptocoin. Guess how many there are now? Over 1000!
Here's what the April 2018 Elliott Wave Theorist said:
The number of types of vehicles with which to speculate is unprecedented. The number of derivatives is unprecedented, and the aggregate value of those derivatives is unprecedented. The complexity of the investment marketplace is unprecedented. The number of investment manias in the past twenty years--for dot-com stocks, housing, commodities, oil, precious metals and cryptocurrencies--is unprecedented.
What does all this mean?
Well, it strongly suggests an "unprecedented" financial crisis.
You see, financial crises always followed when past similar conditions developed, even though they were smaller in scope.
How close are we to the tipping point?
Let's turn to the January 2019 Elliott Wave Financial Forecast, a monthly publication written by EWI Chief Market Analyst Steve Hochberg and his colleague Pete Kendall.
They show this graph and say:
Total global debt hit a record high of $250 trillion in 2018. We cannot list all the record amounts here, but they exist in stock market margin debt as well as student loans, pension obligations, corporate debt and consumer debt. Moreover, the quality of the debt is deteriorating rapidly despite a strong U.S. economic expansion.... In 2008, the United States had roughly $3 trillion in U.S. corporate bonds outstanding. Today there is a larger amount just in bonds rated BBB or lower. Bonds that are rated BBB are just two grades removed from junk.
Given that deflation is triggered when the amount of debt becomes unsustainable, the current record amount of debt hints that the "tipping point" is not far away.
The January 2019 issue of the Elliott Wave Financial Forecast further discusses the "long road to massive debt deflation."
In EWI's view, these "unprecedented" developments strongly suggest that defensive action is in order.
Take the time to read the free report, "What You Need to Know Now About Protecting Yourself from Deflation." Enter your email below to get immediate access -- it's Free!
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