Market Crash Incoming

[outsider club logo header] Jul 11, 2024 | By Christian DeHaemer Market Crash Incoming You may not have noticed what with the S&P500 hitting new highs every other day, but the economy has been getting a slow drip of bad news over the past few months. Here are a few of the charts that I’ve been collecting that paint an ominous picture. First off, bankruptcy is hitting new highs along with the market. We are hitting a 14-year high in companies going under. Failed companies are the highest since 2010 which was the tail end of a brutal, multiyear, bear market. [Bankruptcy] --------- Sponsored --------- Superbug Crisis: Is This Unknown Company Our Last Hope? Antibiotic-resistant superbugs could claim 10 million lives annually by 2050. A small company's partnership with a renowned university might hold the key to our survival. [Learn about the potentially life-saving technology that could solve the superbug crisis and attract billion-dollar acquisitions]( ---------------------------------- And despite Biden’s big spending bill to encourage manufacturing in the U.S., industrial production is contracting, which is a leading indicator of a recession. [IPC] People are running out of money. Helen of Troy (HELE), the maker of Revlon and other makeup brands, has seen its stock drop 48% YTD because people aren't spending on frivolities. Nor can people use their houses as ATMs like they did in prior recessions. Mortgage payments are at a 40-year high: [Mortgage] And the Refi Index has flatlined. Few people will trade a 3% note for a 7% note. [Refi] And it’s not like stocks are cheap. All the money is in the Magnificant 7 stocks. [Mag 7] However, even the broader market is as expensive as it has ever been. [Wilshire 5000] On top of that, everyone is bullish! The put/call ratio is a contrarian indicator. The last time it was 0.58 was 8/10/15 and SPY dropped 13.42% over the next 10 trading days. [put/call] And finally, when the Fed starts in on its rate hiking cycle it inevitably ends in a recession. Over the past few decades, it's just taken longer to kick in. The Fed started hiking in 2022 and ended in July 2023.  [Months since...] I’m starting to think we could be in for a rough September. You might consider using the rate-cutting hype to increase your cash position. Sitting in a 5% money market fund seems like a good idea. Furthermore, you’ll have some dry power when you need it. All the best, Christian DeHaemer Outsiderclub.com Good articles: [( [( [(    This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Osprey Financial Research LLC, 5004 Honeygo Center Drive Suite 102-202