- Signs - Five Man Electrical Band
Sign, sign, everywhere a sign
Blockin' out the scenery, breakin' my mind
Do this, don't do that, can't you read the sign?
Fundamentalists want data. Techs need their candlesticks and charts. We, at Evolution use a hybrid of the two. The stronger forces within the market favor a recovery even in the face of negative news. They prefer the rumor hopes. They are winning. They attack every short which bursts the market even higher. The one big flaw in this reality is the market settles at the new price whether individually on in the indexes. These new price levels are your first warning. The evaluations are not justified. The overlooking of the debt influence in the earnings report is another time bomb. Lawyers and accountants have changed thinking on assets and liabilities. They made debt a positive. They can do this in their earnings report. It is not a positive! The bomb faltered because the Federal Reserve made interest rates devalue old debt. Now, they have no more ammo. This is another warning sign. And we have this case to show our point...
We read this in the news: A company that made over $21 billion in 90 days with $13.7 billion in profits is entering the debt market. Why? To pop up their stock price with the positive aspect that debt is now an asset. Can you name this firm? Apple.
Back in the day when there was an actual unemployment office, people didn't need the media to tell them that things were rough. They could see the crowded offices and long lines around the block. The internet eliminated all that visual. Today, there are even longer lines, but cutbacks to unemployment agencies have stifled wage benefit claims. The media was quick to say that last weeks unemployment claims fell below one million for the first time since February. Our Economic Evangelist says, "Unemployment is averaging over five million for every month since February." That is a very scary warning.
It gets worse...
There is another office where the phone is ringing off the hook. Where appointments are backed up into 2021 and there is not enough people and space to conclude this necessary business. Can you guess where it is? The Bankruptcy Court.
Keep in mind when you view the list to which grows every day and week that these firms represent thousands of employees. When their case is heard and with the way lawyers made this court, the rubber stamp of the law will send thousand if not millions more people to attempt to file a unemployment claim, but no one will see this visual. It is another negative of the internet. The internet is treated like globalization. The media reveals all good news and hides the bad. There is no balance. This is another warning sign.
Before I provide this list there is another list that is growing even bigger. It will effect many millions of people and our economy. It is the restaurant industry. This effects not only workers, but local farmers. There are stats which show that one-third of all new restaurants will fail within two years. This year, due to the virus, the failure rate could rise to 67%. This is not just a warning, but a catastrophe. Our malls are hemorrhaging. Society is getting scared and they will fear more when the visual of boarded up restaurants become a everyday occurrence. When the market becomes aware, a crash will happen. We all know the month of October is the poster month for these epic down days. There is a day of reckoning coming. This is our warning to you.
There are already 82 defaults on credit this year. The S&P has downgraded the credit of more than 1970 companies. It is more than any year ever! They forecast that the default rate could rise to 12.5% by next March. Globally, credit downgrades have surpassed 600 firms which is double the recession of 2008.
Here is a sampling of the firms in bankruptcy:
Diamond Offshore Drilling, Black Ridge Technology, Real Good Solar, Valeritas Holding Inc, Pier 1 Imports, McDermott International, Globe Photos, Yuma Energy, Frontier Communications, Carbo Ceramics, Quorum Health, Stein Mart, LSC Communication, United Cannabis, Whitney Petroleum, Helios and Matheron Analytics, Eco-Stim Energy Solation, Foresight Energy, McClatchy, Omagine, Stealth Technologies, Generation Zero, Broad Vision, Neiman Marcus, Pioneer Energy Services, and on and on....
Sadly, one more piece of news. The space station took a picture of the Three Gorges Dam in China. This is the world's largest dam and provider of clean hydro-electric energy. The picture shows the dam is bending from excessive flooding within the nation. We need to say a prayer for the atheists. This dam is a great engineering feat and millions of lives could be lost if it breaches. The forecast does not look good as two typhoons could happen. This is also a warning that is so dangerous that it relates. We pray that nothing bad happens. Peace.
