BlackRock cautioning against USA stocks; European finance ministers meeting

The world’s largest investment company, BlackRock, Inc., has concerns about the future of stock values in the USA in 2014:

World’s biggest investor BlackRock says US rally nearing exhaustion

BlackRock has advised clients to be ready to pull out of global stock markets at any sign of serious trouble http://www.telegraph.co.uk/finance/economics/10507003/Worlds-biggest-investor-BlackRock-says-US-rally-nearing-exhaustion.html

BlackRock: The Most Likely Taper Timing

December 10, 2013

Thanks to a slowly improving labor market, anemic wage growth and a still reluctant consumer, economic growth is likely to remain modest and inflation low. As such, while it’s still possible that the Fed will announce tapering of its bond purchases this month, early 2014 seems the more likely timeframe. Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock http://www.etftrends.com/2013/12/blackrock-the-most-likely-taper-timing/

BlackRock Inc.’s President Robert Kapito said investors should buy assets such as real estate and infrastructure funds as U.S. stocks have hit record levels.

Investors can’t get sufficient diversification from stocks and bonds because the two asset classes are moving increasingly in tandem, Kapito said in a Bloomberg Television interview…with Erik Schatzker….

BlackRock’s Chief Investment Strategist Russ Koesterich said stocks in Europe offer better value for investors than equities in the U.S. Parts of the U.S. market are “frothy,” while companies in Europe are still reasonably priced, Koesterich said at an investment conference in New York hosted by the world’s largest money manager.

BlackRock forecast in its outlook that the Federal Reserve will decrease its stimulus-oriented bond purchases “lightly” while keeping interest rates low.

“Tapering aside, 2014 will still be the second-most accommodative year in U.S. monetary history, after 2013,” BlackRock said in the report.

The ability of central banks to stimulate further growth through loose monetary policies has waned, the company said. http://www.bloomberg.com/news/2013-12-09/blackrock-s-kapito-recommends-real-assets-over-stocks.html

BlackRock, Inc. is a U.S. based multinational investment management corporation based in New York City. As the world’s largest asset manager, BlackRock is a leading provider of investment, advisory and risk management solutions. The company acquired Barclays Global Investors in December 2009, solidifying its position as the largest investment manager in the world. As of September 30, 2013, BlackRock had $4.096 trillion in assets under management. (Wikipedia, viewed 12/10/13)

So, the world’s largest asset manager seems to feel that the stock market of the USA is peaking and that investors should cash out as it peaks and switch to other types of assets. And BlackRock partially seems to feel this way because it believes that the US Federal Reserve will decrease its creation of money–which is essentially a counterfeiting scheme that the USA has gotten away with for a time.

Basically some at BlackRock seem to understand that at some point investors will realize that the values in the stock market have been propped up by “loose monetary policies.” Furthermore, they are recommending European stocks as they believe that they are not as overvalued as US ones, and presumably also because the Europeans have not relied as much on loose monetary policies as the USA has.

Speaking of European monetary policies, meetings are taking place for the hope of a banking union there:

10 December 2013

AFP – EU finance ministers will try Tuesday to take the next step toward “Banking Union,” the new common rules meant to ensure banks help the economy, not destroy it through reckless risk-taking.

The aim appears simple but putting the system in place is politically fraught given the huge additional powers Brussels could acquire.

“We have worked hard to get a political agreement to get banking supervision, including the restructuring mechanism, off the ground this year,” German Finance Minister Wolfgang Schaeuble said Monday.

“It is still possible to do this,” Schaeuble added, but he could not rule out another ministerial meeting before EU leaders gather December 19-20. http://www.france24.com/en/20131210-eu-finance-ministers-seek-progress-banking-union

As far as financial investments go, I will recommend that all who believe in the God of the Bible should tithe and give offerings as their best investment (see also Tithing Questions and Some Answers).

As far as the USA vs. Europe goes, there are some points I want to make. First some points about the USA:

The Bible is clear that the nation with the highest amount of debt will fall and be taken over (Habakkuk 2:6-8).
The USA is the most indebted nation in the history of humanity.
The incoming head of the US Federal Reserve has stated that she wants to continue to debase the value of the currency of the USA, which is a form of increased indebtedness. When or how this may be ‘tapered’ will be seen.
The Bible is clear that a time of Jacob’s trouble is coming (Jeremiah 30:7).
The USA will eventually lose its economic (cf. Revelation 13) and military (Daniel 11:39) dominance.
But eventually does not mean 2014, though stock prices will fluctuate in 2014.
The economy of the USA will fluctuate until it totally collapses.

As far as Europe goes, there are several points to consider:

The European Union is the biggest exporter in the world (see Germany: Merkel’s new coalition wants Germany to increase influence and set European standards–EU exports already number 1 in the world).
Europe is prophesied to have economic and military dominance (cf. Revelation 13), and takeover the USA and its close Anglo-Saxon allies (Daniel 11:39).
Yet, the Bible warns that it will have problems (Daniel 2:41-43).
Europe may have violent civil unrest, which would negatively affect many stock values there.
The Bible teaches that Europe will reorganize at least two more times (Revelation 17:12 & 17:13).
The Bible teaches that eventually the financial system in Europe will collapse (Revelation 18).
Europe’s financial collapse will happen years after that of the USA.

Both the economy of the USA and that of the rising European power will eventually collapse.

Outside of the Bible, history, and news reports, part of why Europe will rise perhaps can be partially illustrated by story.

There once was a movie that had two men camping outdoors. Suddenly, one man yells, “Run, a bear!” The other man yells back, “You can’t outrun a bear.” The first man responded with, “True, but all I have to do is to outrun you.”

The implication is that the first man only needed to be better in the site of the bear than the second one, which presumably the bear would consider to be weaker, and then catch and destroy.

From an economic perspective, the story basically is that the economy of Europe does not need to be perfect, only perceived to better than that of the USA to someday surpass it. BlackRock is suggesting that will be the case sometime in 2014.

And maybe it will and maybe it will not be. Various ones believe that gold and other assets which lost monetary value in 2013 will gain it in 2014 and/or later years. What will actually happen in 2014 is not clear yet, although I will state that the Great Tribulation cannot begin in 2014 and Jesus will not be returning then (despite what some ‘blood moon’ proponents claim; see also Blood Moons and Prophecy).

Ultimately, all need to realize that the US dollar will have no monetary value (it may have some minor value as a fuel source, novelty, or something else). Although some realize that the USA is a superpower in decline, most do not really understand how bad it will get. The USA is building up towards a massive financial disaster that pales anything before in its history.

The Bible shows that a European power will rise up and dominate the world economically and militarily (Revelation 13). But it also shows that the European Babylonian power will also fall, and the fall will be a great fall (Revelation 18).

Without national repentance the USA is doomed and later, so will be Europe. Since the USA seems to be going more into sin nationally, that type of national repentance seems unlikely. Yet, personal repentance is still possible.

Yet, after the economy of the world is in shambles, Jesus will return and establish the millennial kingdom. A kingdom built upon truth and sound economic principles. Would you like to be a part of it?

Some items of possibly related interest may include:

Will the Anglo-Saxon Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-SaxonSouthern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Did The Early Church Teach Millenarianism? Was the millennium (sometimes called chiliasm) taught by early Christians? Who condemned it? Will Jesus literally reign for 1000 years on the earth? Is this time near? A related sermon video would be The Millennium.
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2021 or 20xx? There is also a video titled The 6000 Year Plan: Is the end of humanity’s reign almost up?
What is the Gospel? True religion should be based upon the true gospel. What are some of the different gospels and where did they come from? Do you believe the true or a false gospel? Here is a version in Korean 복음이란 무엇인가?
The Gospel of the Kingdom of God was the Emphasis of Jesus and the Early Church Did you know that? Do you even know what the gospel of the kingdom is all about? You can also see a YouTube video sermon The Gospel of the Kingdom.
Just What Do You Mean the Kingdom of God? A booklet that was written by Herbert Armstrong answers questions about the Kingdom.
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
Tithing Questions and Some Answers Addresses some non-biblical arguments against tithing. Should people tithe?
Ending Your FINANCIAL WORRIES How can people help themselves and others financially? Herbert W. Armstrong wrote this as a booklet on this important subject.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
When Will the Great Tribulation Begin? 2014, 2015, or 2016? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede comenzar la Gran Tribulación en 2013 o 2014? ¿Es el Tiempo de los Gentiles? You can also see the English language video The Great Tribulation Will Not Begin Before 2017.
Blood Moons and Prophecy There are four ‘blood moons’ expected in 2014 and 2015. Do they signal the Day of the Lord or the return of Jesus Christ? A related YouTube video is also available: Blood Moons, Prophecy, 2014, and 2015.
Wormwood and Planet Nibiru Is Comet ISON really Planet X? Will the Earth be devastated by this in 2014? Here is a related YouTube video Could Comet ISON be Wormwood of Bible Prophecy?
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? Here is a link to a video titled: The Future King of the North.
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.