Stathis Warned about the Collapse in Emerging Markets in June 2013

Recently the financial media has been issuing all kinds of statements about the emerging markets in order to create drama and panic. 

Does this behavior seem familiar?

The financial media is always trying to create some kind of smoke and mirrors drama to get suckers hooked into their programming content so they can sell ads.

[There is also another layer of fraud built into this game and it spans the full gamut, from front-running through insider trading. But these issues are for another time.]

This time the clowns in the financial media claim that the recent sell off in the US stock market has been due to worries of a spillover from the emerging market “mess.” These claims are simply not true.

In order to convince you of their narrative, they have interviewed brain dead floor traders live for you to see for yourself.

Aside from the fact that the majority of these guys are high on cocaine or amphetamines, the problem is these guys are just as clueless as the bimbos who interview them.   

 

 

And if you really think you can trust the credibility of the Wall Street chief economists and strategists that make rare appearences on this criminal network, keep in mind that Larry Kudlow was fired from Bear Stearns as its chief economist due to his out of control cocaine abuse which caused him to miss key client presentations.

How do we know this? Because Mike Stathis worked at Bear Stearns. Just ask any Bear Stearns employee who worked there in the 1990s and they will confirm this, that is if they are being honest.

The fact is that once someone working in the investment world fails, he or she goes into the financial media. This was the case with Larry Kudlow, Kim Cramer, Joe Kernen, Pete and Jon Najarian, and the rest of the clowns on these financial networks who previously worked in the investment world. 

Meanwhile, these financial networks have borrowed big pharma's hiring manual for female drug reps. They look for attractive young, thin females, preferably with big breasts.

You see, the idea is to sell sex and impulsiveness. This causes the audience to make foolish decisions. For more on this, see here.

Clearly, the financial media is nothing more than a dog-and-pony show designed to screw its audience while raking in loads of cash from advertisers.

In most cases there is no single reason for a market selloff. However, in a large number of cases, the single most responsible reason is due to valuation. Everything else provides an excuse or opportunity to sell the market.

The bozos, bimbos and con men in the financial media who are claiming that the current sell off is due to the “emerging market crisis,” are 100% wrong.

 

 

We are not saying that there are no problems in the emerging markets or that the problems in these nations aren’t going to get worse. In fact, the problems are likely to get worse.  

And we are not saying that the markets won’t sell off in the future due to problems in the emerging markets.

What we are saying is that the current sell off in the US market has almost nothing to do with what is going on in the emerging markets.

If anyone is able to read the minds of all investors in order to determine their reason for selling I’d like to know about it because they aren’t human. I would imagine God would know why the market is selling off.

Mike Stathis certainly is not God but his guess is that the selloff is due to valuation concerns. The current problems in the emerging markets merely offers an excuse or mild catalyst for a selloff.

But of course this is just a guess. No one knows for certain. Only God knows for sure.

The fact is that the emerging markets have been in trouble for quite some time now, as we have documented.

Furthermore, it is rare that a sell off is due to only one reason because investors have different strategies, positions, objectives and ideas so they do not react the same or for the same reason. 

As we have discussed on numerous occasions, the financial media always tries to conjure up some kind of story to explain a market sell off because it creates drama and enables them to manufacture daily story lines. This keeps the naïve sheep ready to tune in to the daily soap opera.

This kind of soap opera treatment is dangerous for investors to be sucked into.

The objective of these fictional creations packaged as “news” and “analysis” is to lure the largest audience so these media networks can make the most money from advertisers.

The media is well aware of what it is doing. It is lying to its audience in order to generate ad revenues. This is pure fraud. Yet, the US court system protects the media from any damages as a result of these lies. This is an advantage given to no individual in the USA.

The media crime bosses and minions serving as producers and mouth pieces know they are scamming naïve suckers, but they could give a damn. They could care less that they have caused millions of sheep to lose their retirement savings. All they care about is putting money in their pockets.

There is no code of ethics in the media just like one does not exist in the financial industry. The fact is that these two industries are a magnet for scumbags because the business model of each industry is based on deceit, lies, and fraud. There is no value being created in either of these industries. They parasitic industries.

The financial media pulls the same stunts used by Hollywood producers when they create “reality TV” shows and claim these useless shows are real, unrehearsed footage. After all, the same people who run Hollywood also run the media networks.

 

The fact is that if you are paying attention to the media, you are naïve and you are going to get blasted. Smart people tune the media out. Suckers tune in.

We have made this point on numerous occasions. See here.

Consider for example the horrendous predictions and advice given by some of the biggest financial media mouthpieces – Peter Schiff and Jim Cramer.

Anyone who has conducted an extensive examination of their recommendations and forecasts understands what a disaster the media is.

Yet, many people actually swear by Cramer and Schiff because these individuals aren’t too bright and they have not bothered to fully investigate their track records.

Just a few weeks ago Goldman Sachs came out with a panic report of its own. This was followed by similar conclusions from other Wall Street firms. See here.   

This report warned investors that the emerging markets would be very messy in 2014.

Mind you, Goldman has been more ahead of the curve than other Wall Street firms when it comes to downward revisions of economic growth estimates for the US and emerging markets through at least 2012-2013. But still Goldman has been behind the curve.

[As a caveat, we find it more than hilarious that at least one Wall Street firm, Morgan Stanley was very bearish on the US stock market all throughout 2013, but has recently reversed course prior to the current selloff and is now bullish for 2014. Could Morgan Stanley usurp Peter Schiff in 2014 as the best contrarian indicator? I doubt it.]

As the media has magnified the issues in the emerging markets Goldman has continued to add fuel to the fire.

See here. 

But where were these warnings from Goldman before? 

Do you really think the problems in the emerging markets just popped up out of nowhere? 

Throughout most of 2013 Goldman was bullish on emerging markets and only lowered its growth estimates for China in the fall when others had already issued warnings of a lower rate of growth in China.

Do you really think things have been all rosy for the emerging markets up until a few weeks ago?

Well let’s take a look at some emerging market ETFs which mimic the major market indices.

The following charts show the major market ETFs for China, India and Brazil from September 2010 to January 27, 2014.

 

 

As you can see, a clear downward trend has formed over that period.

Of course, hindsight is 20/20, right?

Mike Stathis began issuing warnings about the emerging markets by late-2010.

And he followed up his analysis each month in our research publications.

By June 2012, we released a massive 300-page global economic analysis discussing the longer-term issues faced by China, India and Brazil, as well as an over analysis and forecast for the global economy going forward (this report is now free for all current newsletter subscribers and Members). See here. 

And we followed this up with a 4-part video presentation the following year (this presentation is also provided at no charge to current newsletter subscribers and members). See here. 

In November 2013, Stathis even devoted a 3-video presentation to Brazil for subscribers of the Intelligent Investor to show just how bad things had become (this presentation has also been provided to new members or renewals as of January 7, 2013). See here.

But rather than run away and hide, Stathis provided accurate trading guidance for each of these ETFs every month. He even provided some hints in the public domain regarding the dangers in Brazil. See here and here. 

Stathis has been warning about the weakness in China, India and Brazil for more than three years. Most of the warnings have been focused on India and Brazil up until 2013, when Stathis began warnings of some very real problems in China.

Although the issues faced by the emerging markets really became worrisome in early 2013, Stathis has been providing remarkably accurate trading guidance for investors in emerging market ETFs even during this two-year period that he identified as bearish.

The following video (below) is just one example illustrating the following:

1. Mike Stathis was warning about the risks and weaknesses in the emerging markets several months before Wall Street had a clue.

2. Mike Stathis provided accurate trading guidance for emerging market ETFs despite his bearish sentiment. In essence, he provided accurate trading guidance enabling investors to make trading profits while these ETFs trended downward (i.e. trading the securities down).

 

In the near future, we are going to post some of these previous forecasts in the emerging market ETFs in order to further demonstrate that Mike Stathis does hold the leading track record in the pre- and post-crisis period and remains as one of the top investment minds in the world.

For now, see here and here for his track record.

The fact is that everyone has been behind the curve; everyone except Mike Stathis.

By now you probably realize that Mike Stathis is the world’s best US stock market forecaster. See here.

Below you will find several articles that document Mike's market forecasting accuracy and insights.

Market Guidance: Past, Present And Future 

The Case For Market Timing

A Lesson In Market Forecasting

Where Is The Stock Market Headed?

We Pin-Pointed The Past Two Market Tops And Bottoms

We Predicted The Market Correction AGAIN

Mike Stathis' Near-Perfect Market Forecasting Record 

Since The Market Lows, Only One Man Continues To Shine

AVAIA Market Forecast And Recommendations SPOT ON, AGAIN

We Predicted The Market Selloff Yet Again

 

But he is also one of the best at distressed securities analysis, technical analysis and relative valuation analysis. It is precisely for this reason that Stathis is able to forecast so many things so accurately.