2017: A Pivotal Peak Year

It has already begun – how long will it take for the market to realize it? 2017: A Pivotal Peak Year [Dennis Slothower Photo] By [Dennis Slothower]( Written Tuesday, June 27, 2017 Over the last several months, a recurring theme we've discussed has been the uniqueness of 2017 with regard to years of central bank liquidity intervention. As other central banks follow the lead of a tightening Federal Reserve, quantitative easing will come to an end in 2017 and 2018 is now projected to record a drop in central bank liquidity of nearly $4 trillion over the next 12 months. A downward gap in liquidity of this magnitude will wreak havoc on the financial markets, despite current index prices near record highs right now, as traders and large-volume managers nervously wait to see who will be first to capture their gains and move to the sidelines. There are other indicators that 2017 is a peak year, not only for equity prices and liquidity from the banking cartel but also for growth opportunities. Today, I want to review the dramatic multi-decade peak in population growth occurring right now in 2017 and the projected decades of shrinking growth in the coming years. A significant portion of the world population that has been responsible for years of impressive consumption has likely peaked and the world will now begin a serious decline in economic growth for decades going forward. As far back as 1960 the core population of 25-54 year olds in the OECD nations of the world (U.S., Canada, Mexico, Chile, most the EU, UK, Turkey, Israel, Japan, S. Korea, Australia, and NZ) were very near the combined core populations of the CRB (China, Russia, and Brazil). Since that time, both OECD and CRB core populations have grown dramatically, fueling economic opportunities for many nations and global businesses for decades. But a change is on the horizon. Advertisement The Greatest Commodity Shortage in History It's no secret the world faces shortages in many commodities. The world's diminishing supply of everything from cocoa to coffee... lithium to lumber... phosphate to plutonium... silver to sugar... is of great concern. But there's an even bigger and more imminent commodity shortage at hand that no one is talking about. [Details here...]( Over the last few years that core population growth has completely flattened out and is suddenly projected to decline for the next several decades: [70626-DecliningPopulationGrowth]( Notice the monumental nature of 2017 here. These core populations are responsible for consuming over 70% of the earth’s crude oil and nearly 80% of all global exports. What will happen in 2018 when the combined core population of major consumption begins to outright shrink in 2018 and every year thereafter? Do you understand a little better why we say a coming recession is unavoidable? With central bank liquidity reversing and even tightening through shrinking balance sheets and a population growth that will also shrink consumption of raw and finished materials, the bottom-line economics of corporations and countries are destined to be trimmed dramatically. The following chart shows the magnitude of the shrinking consumption that has already started here in 2017 and helps explain why so many signs of recession are popping up: [70626-ShrinkingConsumption]( Advertisement [Streaming Your Way to 4,265% Pot Profits]( Royal Gold was one of the first companies to use the “streaming model.” It would lend producers money in exchange for gold. Now the first company to do this in the cannabis space has just IPO'd. We think similar 4,265% profits could be in store for investors who act now. [Full details here.]( It simply doesn’t matter how much debt countries are willing to take on — with this much decline in core consuming populations there will just be too much decline in demand. Even the promise of interest rate cuts back to zero will become ineffective. Our generation has never seen such an event. We have been fed propaganda of population explosion for so long, it will take years before the public even begins to believe that the economic world is undergoing a depopulation, the first ever in our generation — and already in progress right now. The fact that the population growth is now shifting to the 65+ year olds will present many perplexing issues — but economic growth will not be one of them. Preservation of assets and health care will become preeminent. Think what this transition will do to housing prices, as housing inventory explodes beyond demand. We will see another massive drop in real estate values. It will be much the same for car manufacturers and public transit (think trains, planes, buses, etc.). In other words, durable goods orders will drop month after month after month. Interestingly, today’s durable goods orders showed a much greater falloff than economists were expecting, tumbling by 1.1% in May after slumping 0.9% in April. And in true fashion to this population analysis, it was a steep drop in transportation equipment that surprised today, plunging 3.4% for May after sliding 1.8% in April. The bigger question is what will this population / economic shrinkage do to equity prices? Will companies pull back proportionately? Will many fall prey to bankruptcy and financial failure? We have seen equity prices rise in tandem with core population growth. Will we now see equity prices fall in tandem with a shrinking core population? It has already begun — how long will it take for the market to realize it? Technical Divergence Appears Despite the efforts of the banking cartel to inject liquidity and keep equity prices up for the benefit of their overstuffed portfolios, we are seeing technical divergence appearing that suggests a continued narrowing of breadth. When too few stocks are doing the heavy lifting while their less glamorous siblings are in decline, a sudden correction is often in the wings. The S&P 500 has shown a steady price advance since the November elections. But during that same time, breadth has continued to weaken and we now see some strong divergence signals: [70626-SP500-Divergence]( Advertisement [A Reclusive Financial Forecaster Is Out With A Shocking Discovery]( He’s authorized me — and only me — to share five charts with the public that show Wall Street is about to crash 73%. This man has made more correct forecasts than anyone in the business — starting all the way back in the 1960s. Today’s “gurus” look to him for guidance. He’s called everything from the stagflation in the 1970s... to the rise of Islamic terrorism... to the real estate and market implosion of 2007. But he’s calling this “the most disturbing market forecast I’ve made in 50 years.” [You’ll meet him right here.]( This chart shows that the MACD technical indicator has been steadily in decline since peaking in mid-November, 2016. In addition, the relative strength indicator has also shown a steady downward divergence since peaking in late February / early March of this year. Another popular technical indicator has just signaled weakness — the Hindenburg Omen. Over the last several weeks multiple confirmations of a Hindenburg Omen have been observed. When multiple occurrences of this signal are created in a short time period it is said that the Hindenburg Omen has been “confirmed”, suggesting that breadth is breaking down and sectors are too divergent, even as prices are advancing for the major indexes. There has never been a significant market correction or crash without the accompaniment of a Hindenburg Omen. That doesn’t mean a crash is imminent, it just means that market conditions are unusual right now and out of balance for a bullish outlook. It simply means that real risk remains elevated — as though you might not have realized that after all our harping. To your wealth, [Dennis Slothower Signature] Dennis Slothower Editor, [Wall Street Underground Profits]( Dennis Slothower has been leading a small but profitable group of investors to some extraordinary profits in both good markets and bad over the course of a 38+ year investment career, starting as a stock broker in 1979. In 2011 Dennis was named the top performer by Hulbert Financial Digest for avoiding the Crash of 2008. Now, he is bringing his extensive experience to the public through [Outsider Club]( and [Wall Street Underground Profits](. For more about Dennis, check out his [editor page](. *Follow Outsider Club on [Facebook]( and [Twitter](. [Sprott_Symposium_2017_550x68]( Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [Bitcoin and Ethereum: Be Careful What You Wish For]( [The Fed Speaks Out of Both Sides of Its Mouth]( [Donald Trump Will Drop The Bomb – 3 Reasons Why]( [Atlantic Gold Interview Part II: Time is Money]( [Atlantic Gold: The Next (overlooked) Gold Mine]( Related Articles [Cannabis and Bitcoin: A Perfect Match?]( [The Fed Speaks Out of Both Sides of Its Mouth]( [Bitcoin and Ethereum: Be Careful What You Wish For]( --------------------------------------------------------------- This email was sent to {EMAIL} . It is not our intention to send email to anyone who doesn't want it. 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