Shah was featured on Varney & Co. yesterday to talk about his August prediction that the markets would fall 20%.
While they’re only halfway to his 20% target, people are starting to notice that Shah has been right about these markets all along. Stocks, which were dragged higher into the end of the year by a few large-cap leaders, are crashing. So is the price of oil and other commodities Shah’s been watching – and warning investors about – for months.
Will the markets fall another 10% to the downside? What’s driving the correction – is it China’s debt bubble? Where do we go from here?
Click here for Shah’s answers…
Starting today, America’s big banks turn in their fourth-quarter 2015 report cards.
A handful of analysts, citing the pounding big banks’ stocks have taken, driving them deeply into "oversold" territory (with a few trading near their 52-week lows), expect positive earnings news to push share prices sharply higher.
I say, good luck with that.
That’s because there probably won’t be any positive surprises – and any unexpected good news will likely get discounted quickly as investors look past short-term revenue bumps or cost-cutting measures and see a tough year ahead.
The KBW Nasdaq bank index shows bank shares down 17% from their July 2015 highs, down 15% since December, and down almost 10% so far in 2016. That much negative momentum is going to be hard to overcome.
And if the big banks don’t turn in good report cards – it could spell trouble for markets that have plenty of bad news to deal with already.
Here’s what to expect…