Bank of America: Markets Are in a ‘Twilight Zone’ and It’s Time to Hold More Cash and Gold
In a note sent out this morning, Bank of America Merrill Lynch has a warning for investors:
Investors remain trapped in “The Twilight Zone”, the transition period between the end of QE and the first rate hike by the Fed, the start of policy normalization…until (a) the US economy is unambiguously robust enough to allow the Fed to hike and (b) the Fed’s exit from zero rates is seen not to cause either a market or macro shock (as it infamously did in 1936-7), the investment backdrop will likely continue to be cursed by mediocre returns, volatile trading rotation, correlation breakdowns and flash crashes. For this reason we continue to advocate higher than normal levels of cash, adding gold and owning volatility in mid 2015. Given extremities of liquidity, profits, technological disruption, regulation, income inequality…potential for a cleansing drop in asset prices cannot be dismissed. Most likely catalysts: Consumer, Rates, A-shares, Speculation, High Yield.
The note also highlights two interesting disconnects in the markets:
- Investors say they are optimistic, but there is a high level of cash on the sidelines
- U.S. stock prices are at record highs, but equity funds are seeing outflows
Bank Of America Warning
Posted 01 Jun 2015
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Soros Predicts World War With China!
Posted 31 May 2015
Apparently the False Flag Ops is a GO!
Perhaps they are ready to pull the strings politically, Economically and militarily…
How many more “citizens” will wake up to the deceptive institutional Matrix…
When will the Tipping Point be reached – where the institutions have lost the minimum amount of support to keep them operating…
I find it interesting that the crime lords are sounding warnings more frequently and publicly; from Europe to the Americas. Perhaps they are aware that the social media has been sounding the alarms non-stop since 2008 in direct contradiction to the corporate controlled mainstream media, government, and bank officials.
See:
http://www.telegraph.co.uk/finance/economics/11625406/The-world-is-drowning-in-debt-warns-Goldman-Sachs.html
http://money.cnn.com/2015/04/02/news/economy/us-economy-growth-zero-growth-first-quarter/
“Greece to miss IMF payments amid fears of ‘catastrophic’ eurozone rupture – Telegraph”
I guess that’s all just bankster speak for the US economy being official in deflation with the economy contracting by 0.7 percent for the first quarter of 2015. Once deflation starts, it becomes a downward spiral as consumers sit at home waiting for prices to drop further.
Sounds to me the bankers are setting up their P.R. campaigns: See we warned you…”
As they set in place their grand solutions to be announced after international summits or from federal “State of Emergency” announcements.