VIX Predicts Pits While Pundits Have Fits

VIX, measuring stock market volatility, last spiked this much in 2007.

vix_predicts_pits_while_pundits_have_fits

Coincidence?  This spike in VIX is predicting a recession (aka the pits) much like it did in 2007.

The result is recession-deniers aka pundits are having fits.  They are saying, “This can’t be happening.”

Meanwhile, believers in the predictability of VIX are saying “It is deja vu all over again. (Thanks to Yogi Berra)

Here are some other signs of a possible recession.

https://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/

/https://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/

https://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/

http://www.zerohedge.com/news/2015-07-27/when-will-we-ever-learn/

Here is how to prepare yourself.

https://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/

Good luck!

Mergers and Acquisitions Set Scary Record For May

Please read the quote from MarketWatch.com below and guess why this is bad.

fish_eat_fish

“U.S. mergers & acquisitions activity is on track for a record month in May, with $241.6 billion of deals already announced, topping the previous record of $225.8 billion announced in May 2007, according to Dealogic data.”

ANSWER: The previous record was just before the Great Recession.

Specifically, eighteen months later the Dow Jones Industrial Average (DJIA) was worth almost half of what it was in May 2007.

Here is a summary of why a recession is coming in plain English.

https://michaelekelley.com/2015/03/02/why-another-recession-is-coming/

Thanks to Team-Studer.net for the photo.