Economic Analyst: Prepare For “Lehman-like” AFTERSHOCKS & Market Volatility

by | Aug 7, 2019 | Experts, Forecasting, Headline News | 5 comments

Do you LOVE America?


    After trade worries triggered the biggest sell-off of 2019, and economic analyst at Nomura is sounding the alarm bells. The economy’s future is gloomy and the outlook ominous according to Nomura strategist Masanari Takada.

    It finally appears that more are able to see this “booming” economy for what it really is: a massive wealth transfer scam.  Takada has even said that the recent recovery of stocks Tuesday is likely the calm before the storm and he’s warning investors to brace themselves for a possible “Lehman-like” aftershock following Monday’s broad sell-off.

    According to the Financial Times, the market has grown increasingly concerned over the fallout from a more contentious US-China trade row. While some analysts have warned of rising recession risks, others have been less ominous in their forecasts that suggest more volatility in stock markets should be expected, amid an uncertain outcome to trade talks and a more hawkish Federal Reserve than investors had hoped.

    Takada says that the volatility in the stock market will come in two separate waves. Takada cited the sell-offs that historically occur in August and the selling by hedge funds and trend-following algorithmic traders. The latest retreat out of equities signaled that the first wave of volatility has arrived, he said. But making matters worse, the VIX volatility index — known as Wall Street’s “fear gauge” — is now above 20.

    We would add here that the second wave may well hit harder than the first, like an aftershock that eclipses the initial earthquake. At this point, we think it would be a mistake to dismiss the possibility of a Lehman-like shock as a mere tail risk,” he wrote to clients, referring to the collapse of the Lehman Brothers investment bank during the 2008 financial crisis.

    The stock market’s plunge could arrive as soon as late August (mere weeks away). That gives little time to prepare financially for those who have consistently rejected the evidence that this economy is a house of cards built on sand during a hurricane.  “The pattern in US stock market sentiment has come to even more closely resemble the picture of sentiment on the eve of the 2008 Lehman Brothers collapse that marked the onset of the global financial crisis.”

    “We would expect any near-term rally to be no more than a head fake, and think that any such rally would be best treated as an opportunity to sell in preparation for the second wave of volatility that we expect will arrive in late August or early September,” Takada said. “We would add here that the second wave may well hit harder than the first, like an aftershock that eclipses the initial earthquake.”

    Written by Tess Pennington, The Prepper’s Blueprint: The Step-By-Step Guide To Help You Through Any Disaster is an easy to follow “blueprint” for preppers or survivalists.

    Across the ages, in every survival story, a disaster of some sort plays a prominent role. Sometimes the part is played by the government, sometimes it is played by Mother Nature, and other times, the role is taken on by a random mishap. If we have learned one thing studying the history of disasters, it is this: those who are prepared have a better chance at survival than those who are not.


    It Took 22 Years to Get to This Point

    Gold has been the right asset with which to save your funds in this millennium that began 23 years ago.

    Free Exclusive Report
    The inevitable Breakout – The two w’s

      Related Articles


      Join the conversation!

      It’s 100% free and your personal information will never be sold or shared online.


      1. The sky is falling

      2. “second wave of volatility that we expect will arrive in late August or early September,” Takada said.”

        HAH! I called exactly this yesterday. its in the comments

        silver 17.25 and rising btw…

      3. New highs by xmas and these shithole writers on this site will just have to stfu again. And fuck Peeter Shit too. How many times can that asshole be dead wrong and still get his story published on this site.

        • …and your reasons for new highs by xmas?

        • Wow i left this site 5 years ago because they doxxed so many comments and moderated speech. And i read the above……betcha i wont be here a week and leave again….

      Commenting Policy:

      Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

      This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.