FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 27 December 2015

A Painful Epiphany Looms In 2016

by Rick Ackerman, Rick's Picks

Pat as this may sound, I expect stocks to continue their boring waft higher in the final days of 2015. I am not predicting any particular strength, only more of the same - i.e., a rally that will deftly exploit seasonality, but without achieving new record highs. Look for short-covering to carry the load, since bears left themselves badly on the ropes when last week ended.


Ordinarily, I'd expect them to get squeezed to the point of bloody capitulation, for two reasons: 1) we have yet to see the parabolic blow-off that would put bears out of their misery; and, 2) the calendar will be working strongly against them. However, a year-ending blow-off is by no means a given, simply because last week's running start, which exceeded no important prior peaks, was not powerful enough to put the fear of the Lord in bears.

Click for large image at Rick's Picks.


If I am wrong and the broad averages rocket to new all time highs, we should be prepared to short into the rally in the final day(s) of the year. Although the economic recovery 'story,' buttressed by the Fed's foolish eagerness to tighten, may have been strong enough to attract some go-along buyers in December, the story itself, as most of us have long understood, is a fraud that flouts common sense. As a result, rather than getting legs that extend the bull market into its eighth year, the 'story' is fated to succumb to grim reality in 2016.

The whys and wherefores should be obvious to anyone who shopped in the malls over the last month or so: they are busy but - and this is ominous - noticeably uncrowded. In my neighborhood, a Best Buy store that seemed to be doing everything right closed before Christmas. This shopping season will go down as the coup de grace for big-box stores in particular and for brick-and-mortar retailers in general. For an economy that generates more than two-thirds of its GDP from consumption, this is creative destruction on a colossal scale. Soon it will lay bare the lies that have sustained the Fed's crackpot monetary policies.

A painful epiphany awaits investors in 2016, and we should take diligent steps to prepare for it as the year winds to a close.

Click here for a free trial subscription that will allow you to access the chat room, Rick's daily touts and intraday alerts, and 'impromptu' analysis sessions online for two weeks.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Investing Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Investing


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
From Money Controlling People to People Controlling Money
Rising Tide Does Not Lift All Ships
News Blog
How The Space Station Avoids Junk In Space
Infographic Of The Day: The Most Popular Jobs In A Decade
Early And Late Cycle Verdicts Are Baseless
The Surprising Divergence Of Employment And Capacity Utilization
The Slump In Undocumented Immigration To The United States
U.S. Productivity Growth Flowing Downstream
Your Light Bulbs Could Be Playing Havoc With Your Health - Here's Why
Mentions Of Trump And Clinton In Hip Hop Lyrics
Salary Is The Most Important Job Criterion
Can Switch Replicate Nintendos Past Success
The Numbers Behind The Zumwalt
Docking A Huge Cruise Ship Is More Complicated Than You Think
New Seasonal Outlook Updates from NOAA and JAMSTEC - Let's Compare Them.
Investing Blog
FinTech Is Taking A Bite Out Of Banks
Options Early Assignment - Should You Worry?
Opinion Blog
The Beer Goggles Stock Market
US 2016 Election: Will US-China Relations Change
Precious Metals Blog
Preparing For Post-Election Social Unrest
Live Markets
21Oct2016 Market Close: Major US Indexes Close Flat On Low Volume, Crude Prices Resume Climb, US Dollar Stabilizes In Mid 98 Handle, Yes, Most Investors Are Worried Which Way This Market Will Go
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved