{"id":11295,"date":"2015-08-21T07:25:58","date_gmt":"2015-08-21T12:25:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11295"},"modified":"2015-08-21T07:25:58","modified_gmt":"2015-08-21T12:25:58","slug":"its-not-just-china-you-should-be-worried-about","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11295","title":{"rendered":"It\u2019s Not Just China You Should Be Worried About"},"content":{"rendered":"<h3 class=\"art-postheader\"><a title=\"Permanent Link to It\u2019s Not Just China You Should Be Worried About\" href=\"http:\/\/www.acting-man.com\/?p=39415\" rel=\"bookmark\">It\u2019s Not Just China You Should Be Worried About<\/a><\/h3>\n<h3><strong>Junk Rolling Over<\/strong><\/h3>\n<p>TIVOLI, New York \u2013 Chinese stocks fell hard on Tuesday. The Shanghai Composite plunged more than 6% \u2013 the biggest fall in three weeks. Our research team in Beijing is downcast.<\/p>\n<p>\u201cNobody here wants to hear about stocks,\u201d they tell us.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-39421 size-full\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/08\/roulettewheel.jpg\" alt=\"roulettewheel\" width=\"620\" height=\"465\" \/>Image credit: AP<\/p>\n<p>And the junkiest \u2013 and riskiest \u2013 part of the U.S. bond market has taken a dive too. Here\u2019s that chart of the big U.S. junk bond ETF that Chris highlighted in yesterday\u2019s Market Insight. It has completely rolled over this year\u2026<\/p>\n<p><a href=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/08\/1-HYG.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-39416\" src=\"http:\/\/www.acting-man.com\/blog\/media\/2015\/08\/1-HYG.png\" alt=\"1-HYG\" width=\"600\" height=\"358\" \/><\/a>iShares iBoxx High Yield Corporate Bond ETF (HYG), daily. HYG is down 6% from its high for the year (this chart shows solely the price of HYG, it is not a total return chart including coupon payments) \u2013 click to enlarge.<\/p>\n<p>Meanwhile, U.S. corporate earnings have plateaued. And according to Deutsche Bank\u2019s David Bianco, earnings are actually<em>\u00a0falling\u00a0<\/em>when you exclude companies\u2019 slick accounting adjustments to \u201csmooth\u201d their numbers.<\/p>\n<p>The only thing left propping up Wall Street stocks,\u00a0as\u00a0<a href=\"http:\/\/www.acting-man.com\/?p=39395\">we explained yesterday<\/a>, is insider trading.<\/p>\n<p><strong>Retail Rot<\/strong><\/p>\n<p>Recent sales figures from America\u2019s retailers show how deep the rot has become.<\/p>\n<p>Sales have been rising at an alarmingly slow rate \u2013 just 0.5% since 2007. Between 2000 and 2007, they went up four times as fast. In the 1990s recovery, they went up six times as fast.<\/p>\n<p>Especially rotten are sales at America\u2019s four largest mall retailers \u2013 Macy\u2019s, Kohl\u2019s, Sears, and JC Penney. Together, their sales are falling at a 10% rate per year\u2026 or four times faster than the fall in department store sales generally. What is interesting about these four companies is that they have been among the most aggressive of the stock market manipulators.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s Not Just China You Should Be Worried About Junk Rolling Over TIVOLI, New York \u2013 Chinese stocks fell hard on Tuesday. The Shanghai Composite plunged more than 6% \u2013 the biggest fall in three weeks. Our research team in Beijing is downcast. \u201cNobody here wants to hear about stocks,\u201d they tell us. Image credit: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6275,2045,6190,130,1297,501,3571,6537,8326],"class_list":["post-11295","post","type-post","status-publish","format-standard","hentry","category-economics","tag-actingman","tag-beijing","tag-bill-bonner","tag-china","tag-junk-bonds","tag-market-crash","tag-retail-sales","tag-shanghai-composite","tag-us-bond-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11295"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11295\/revisions"}],"predecessor-version":[{"id":11296,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11295\/revisions\/11296"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}