Asset protection

The Most Broadly Overvalued Moment in Market History

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Posted by John P. Hussman, Ph.D.

on Wednesday, 08 March 2017 06:28


On Wednesday, the consensus of the most reliable equity market valuation measures we identify (those most tightly correlated with  actual subsequent S&P 500 total returns in market cycles across history) advanced within 5% of the extreme registered in March 2000. Recall that following that peak, the S&P 500 did indeed lose half of its value, the Nasdaq Composite lost 80% of its value, and the tech-heavy Nasdaq 100 Index lost an oddly precise 83% of its value. With historically reliable valuation measures beyond those of 1929 and lesser peaks, capitalization-weighted measures are essentially tied with the most offensive levels in history. Meanwhile, the valuation of the median component of the S&P 500 is already  far beyond the median valuations observed at the peaks of 2000, 2007 and prior market cycles, while our estimate for 10-12 year returns on a conventional 60/30/10 mix of stocks, bonds, and T-bills fell to a record low last week, making this the most broadly overvalued moment in market history.

....read entire article HERE

Asset protection

This Bubble Will Not Prick Itself

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Posted by Bill Bonner - Diary of a Rogue Economist

on Tuesday, 07 March 2017 09:53

Stock-market-bubble-350x300Donald Trump’s election and subsequent comportment stirred emotions and provided entertainment. 

But the critical question was always simple: does this administration represent a break with the pattern of the last 40 years… or a continuation of it? 

All Too Human

Reagan, Bush, Clinton, Bush II, Obama – all of them have taken our political economy in essentially the same direction. More debt. More Deep State control. More consolidation of power in the executive branch (including the military). 

A new president always has some influence. Typically, he can rearrange the furniture and hand out some choice sinecures. 

But not since John F. Kennedy has any president dared to change the direction the government is going or challenge the real power of those who run it.

And today, it would take an almost superhuman leader to do so.

Mr. Trump sounded, at times, as if he posed a threat to the elite. Liberals acted as though he were a devilish scourge sent by evil gods. 

Conservatives allowed themselves to believe he was the long-awaited messiah.

And now we see that “The Donald” – for all his late-night tweets and bull-in-a-china-shop bluster – is all too human, prone to sin and error… just like the rest of us. 

Most likely, the important trends of the last four decades will intensify as the insiders use the chaos and distraction of the Trump team as cover to take even more power and wealth from the American people. 

In short, our guess is that there will be plenty of little surprises coming from this administration, but no big ones. 

President Trump has already proposed to shuffle more cash to the generals and to the jailers. Soon, we will see more money grabs… from the insiders in finance.

No Correction

Among the coming non-surprises will be the feds’ reaction to a crash on Wall Street… or a recession on Main Street. 

Here’s a shorthand for how it will probably go down: crash and/or recession = QE4, direct asset purchasing by Fed, and helicopter money = more wealth for the cronies. 


Asset protection

The Mother Of All Financial Bubbles

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Posted by Chrs Martenson - Peak Prosperity

on Friday, 03 March 2017 08:26

20131207 LDC882 0"We are now living through the mother of all financial bubbles. We've been living with it so long now that we have to take three giant steps backwards to even detect its broad outlines.

As a reminder, a bubble exists when asset prices rise beyond what incomes can sustain. Florida swampland in the 1920’s, tech stocks in the late 1990s, or Toronto real estate today -- all are fine examples of this.

The US government and the private banking cartel known as the Federal Reserve, in cahoots with a very compliant and complicit mainstream media, are doing everything in their vast and considerable power to convince us that we are living in an golden era of risk-free prosperity. And that tomorrow will be even better.

Now, regular readers of PeakProsperity.com's reports will know there's a mountain of evidence contracting this. But it's critical to understand that this is the same public perception management style as we've recently seen at Oroville: Deny, deny, deny... and then finally admit the obvious.

So let’s take those three giant steps backwards and see if we can spot the flaw in the ‘everything is awesome!’ meme that the Fed et al are trying to paint for everyone by flooding the “markets” with so much thin-air liquidity (between $150-$200 billion a month) that nobody has any clue what anything is truly worth anymore:"

....continue reading the whole article HERE

Asset protection

Marc Faber Warns: Beware a Stock Market ‘Avalanche’

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Posted by Marc Faber via CNBC

on Tuesday, 28 February 2017 16:30

If the U.S. stock market begins to move lower, it could trigger an ‘avalanche’ type move, according to The Gloom, Boom & Doom Report’s Marc Faber. 

Marc Faber, the editor of "The Gloom, Boom & Doom Report," predicted the rally's disruption won't be caused by any single catalyst. His argument: Stocks are very overbought and sentiment is way too bullish for the so-called Trump rally to continue. "Very simply, the market starts to go down. As it goes down, it will start triggering selling, and then it will be like an avalanche," said Faber recently on "Futures Now." "I would underweight U.S. stocks."

Screen Shot 2017-02-28 at 3.07.31 PM



MAJOR WARNING: Public Now Gambling “All In” On Stocks! Last Time This Happened Stocks Collapsed 23% In Just 4 Trading Days!

Asset protection

MAJOR WARNING: Public Now Gambling “All In” On Stocks! Last Time This Happened Stocks Collapsed 23% In Just 4 Trading Days!

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Posted by King World News

on Friday, 24 February 2017 07:54

With the Dow Jones hitting new all-time highs and tech stocks skyrocketing this past year “Mom and pop need to shake the couch cushions to buy more shares. Spare cash held by retail investors has fallen to one of the lowest levels ever relative to the value of the U.S. stock market…


....continue reading HERE

...also from King World News:

Reflation Trade Creates Historic Breakouts – What This Means For The Gold & Silver Markets


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Notes From Michael - June 28th The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety)...

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