The Big one: showing serious potential trouble ahead.
I do not trade this index. In this screencast I show how there was a major struggle in the world economies between February 2018 and today 28th October 2018. I explore potentials for Bitcoin and Gold .
A major corrective move south n the MSCI-ACWI has happened. This index is an aggregate of world indices.
What we see on this chart is:
1. Price struggling to stay afloat between February 2018 and October 2018.
2. Price has suddenly collapsed without sign of a significant rebellion (so far).
What’s all this about? It’s about joining some important dots (not all):
1. The world is in a deepening financial crisis.
2. The IMF warned in early October quoting from reputable sources, that risks to the global economy are rising unsupported by increasingly unsustainable policies. They warned that, “The extended period of ultra-low interest rates in advanced economies has contributed to the build-up of financial vulnerabilities”
3. Global debt has reached unprecedented levels.
4. The American economy which tends to influence the world, is living on borrowed time.
5. The European Union is in a state of financial crisis: Italy more recently. Some have forgotten about Portugal, Greece and Spain (part of what is commonly known as the P.I.G.S – nothing derogatory implied]
6. The ECB will stop quantitative easing in December 2018 (it says).
7. Uncertainties about Brexit still loom and probabilities point to greater chance of a hard-Brexit.
8. Trad tensions are high with China and Russia.
9. Emerging market around the world are being hammered. The US stock market is the last in line for a potential beating.
10. Low interest rates over the last 10-15 years in many western countries have created a setup for boom bust cycles. In recent times global interest rates have been creeping up (on average), at among least major economies.
Will reality win over hope and greed? We shall see.
.