Baltic Dry, Copper, Oil, Tech And China Continue To Call For Market Crash Soon...

In this update, we are going to review a small but important range of commodities/lead indicators which strongly suggest that the seemingly endless bull market in US equities is living on borrowed time and will end sooner rather than later, and given how long it has lasted and how extremely overvalued it has become, the downturn will likely start with a crash phase.

Regardless of what the eventual impact of the Coronavirus epidemic is, US stock markets, in particular, seem to be in a state of denial about the actual real-world consequences of the Chinese shutdown and impact on the global supply chain and corporate profitability everywhere, and some elements even seem to be gloating about China’s misfortune and predicament, completely oblivious to the fact that this is going to have a negative impact on almost everyone.

The following points were made by a reader and while I don’t necessarily concur with all he has written, I am open to the possibility that all or much of this may be correct, and if it is, we are looking at serious problems emerging before much longer…

I am getting reports from friends in SE Asia of the precipitous collapse of global freight as the full impact of China's colossal shutdown impacts across its economy and now, unsurprisingly, the global economy. Port ship handling in Malaysia, Singapore and Japan is down 50% already; i.e. shipping freight.

Supply chains across all sorts of industries are collapsing as all components made in China dry up for all sorts of products from cars to i-phones and computers. There has never been a Global economic disruption on this scale in history as nCoV's contagion rate is 4 x as fast as SAR's and 5 to 8 x as virulent. The Chinese have been economical with the truth concerning deaths, infection rates and the numbers of those now under full quarantine. The real numbers have been variably estimated at being 5 to 10 times the official figures. All attempts at real reporting on the scale of this pandemic are being heavily censored but what I have seen emerging on youtube is very scary/harrowing.

International air and sea travel is in virtual freefall as people are now reluctant to travel or simply can't travel on so many air and sea routes due to these now being closed down by States protecting their populations from infection. Holidays to SE Asia are in a state of collapse in Australia and Europe.

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