Friday, September 17, 2010

Market Crash Imminent

The S&P is now 300 points or 27% above where social mood would place it, and in the mean time, mood continues to deteriorate. This will not continue to go unresolved for long. While some of the economic numbers are showing modest improvement, foreclosure rates are increasing, the poverty rate is increasing, more people are permanently leaving the workforce, and there are no signs that this will be changing any time soon. Whether a new series of market crashes starts next week or next month, it is not far away. Such a downturn in the market could escalate the job problem and further add to social mood deterioration. Not a pretty picture.


This chart shows social mood trend modeled from published Moodcompass issues vs. actual S&P prices.


1 comment:

  1. Dr Carl, It doesn't take a genius or even a Bernacke to see, the Street is "cooked!". Who do they think they are kidding?

    ReplyDelete