Jun 23, 2017
Bull markets are driven by new capital: you need more money from more buyers to increase buying pressure so that stock prices rise.
However, … global equity fund inflows slowed dramatically in the last week. …
… The Fed has now announced that rather than continuing reinvest the proceeds from its maturing debt securities, going forward every month it will let $10 billion ($6 billion in Treasuries and $4 billion in mortgage-backed securities) “come due” and NOT reinvest the money (thus) withdrawing $10 billion in liquidity from the financial system every month.
This amount will increase … According to the current plan, the Fed will be:
1) Withdrawing $90 billion in liquidity in 2017 (three months of $10 billion per month and three months of $20 billion per month).
2) Withdrawing $510 billion in liquidity in 2018 (three months of $30 billion per month, three months of $40 billion per month, and six months of $50 billion per month).
This marks the FIRST time in 8 years that the Fed will not be actively providing liquidity to the US markets. …
A Crash is coming… We offer a FREE investment report outlining when the market will collapse as well as what investments will pay out massive returns to investors when this happens. It’s called Stock Market Crash Survival Guide. …
(Phoenix has been saying for years, as have I, that the market is going to tank any day. Of course at this late date, Phoenix is not alone, and among others Jim Rogers has announced a crash for 2017/2018. Personally I don’t see how the bull market run can withstand the above described withdrawal of funds. The world financial system has been on a liquidity opiate drip since 2008. Unless the Fed has some trick up its sleeve we are not being told here, it is about to go into withdrawals. The actual deflation of liquidity will be considerably greater than the numbers above because investors leverage their treasury holdings when investing in the stock markets. There will be margin calls and deleveraging. If you want the free Phoenix Capital Research report …)