Mortgage Delinquencies About to Skyrocket"Financial Advisors" tend to be clueless about the overall health of the market and the economy.
The "advisor" profession is laced with toxic narratives about "your goals" and "focusing on the long term" and "staying invested". They're clueless as to what is going on.
As the recession sets in and the market collapses, we will see mortgage delinquencies soar.
Remain patient, refrain from buying ANYTHING with a debt component (ie homes / cars). We will soon see a credit freeze, as banks and lenders dump their assets and borrowers fail to meet their loan covenants.
This is the real deal, folks.
Stay low and move fast!
Delinquency
Delinquency Rates on Credit Card Loans Not seen since June 2012Credit Card Defaults Last rose 1994, 2006, slowly in 2016 and now a rapid incline of delinquency rate of 2.77%. I do foresee this trend to continue to the upside. The momentum of higher rates has contributed to the pressures. The rise may not be linear but the upside certainty appears to reach 3.25-3.5%. We'll keep monitoring
PRA Group: Bullish Shark at a Weekly Support Congestion ZonePRA Group is currently trading above a Support/Resistance Congestion Zone visible on the Weekly Timeframe, and at this zone it has formed a decently sized Bullish Shark pattern with a Bullish PPO Arrow as confirmation, and this all happens to align with the all-time 0.786 retrace. If this plays out, I think it could come back up to make around a 0.886 retrace, which would put it at around $60.
For further context, PRA Group is a Debt Buyer/ Collector, which is something that furthers my interests in the stock.
Is the delinquency rate too good to be true?The red indicator shows the level of delinquency for each quarter.
The blue index is the SPX.
We have an inverse correlation.
With the increase in interest rates around the world, the cost of money becomes more expensive.
The payment of loans becomes more expensive, so the percentage of defaulters tends to increase.
To pay off debts, positions in the equity market are liquidated.
I'm waiting for the Q3 result (quarter 3 - July to September).
Any bullish indication above the value of 1.24 (quarter 1) would already be a yellow signal.
A value above 1.43 (Q1 2019) would be a red flag for an earthquake.
That would trigger a further drop in the equity market...