Anyone putting money in the stock market at this point should have their head examined. The fact that the stock market has reached a record high for the ninth day in a row should be enough for any rational person to see that we’re in a bubble of massive proportions. But there’s also the fact that all of the big players in the investment community are backing out of stocks like there’s no tomorrow.
Sovereign wealth funds are pulling their money out of stock markets in developed countries, corporate insiders are selling stocks in their own companies, and infamous investment companies like Goldman Sachs are admitting that there’s a 99% chance that the stock market won’t keep rising like this in the near future. Berkshire Hathaway, the 7th largest company in the S&P 500, is sitting on a $100 billion dollar pile of cash that grows year after year, because as the stock market climbs to new heights, there aren’t many attractive investments left. You can’t buy low and sell high when there are no lows, and that should say a lot about current state of the economy.
The latest damning report on the stock market comes from Barry James, the president of James Advantage Fund. In a recent interview with CNBC he compared the global market to Yellowstone National Park. “It’s beautiful, but it has a volcano underneath it.”
“Even though [the market] looks beautiful—setting new highs, good momentum, and earnings have been coming in strong, [there are] things to worry about,” explained the portfolio manager recently on CNBC’s “Futures Now.”
Aside from the rise of passive investing, which James says is creating a “herd mentality” among investors, he also believed that the earnings picture isn’t telling the whole story.
“In the 18 months ending in June, we saw companies that had no earnings, they were losing money, outperform those that were making money,” said James. He highlighted many stocks’ performances this year may not be reflective of their revenues.
And when you look at the data behind these stocks, you’ll find that we’ve been down this road before, and it’s not pretty. Much like Goldman Sachs’ prediction that the market simply cannot sustain itself at this rate, James sees evidence that we’re in for a crash sometime in the next year.
But the biggest threat to the market rally, according to James, is the current valuation levels of stocks.
“We went back to 1994 and researched team data that said [that if we look at cyclically adjusted P/E, one out of two times] the market was down in the next 12 months, and about one out of three times it was down more than 10 percent,” he said.
The stock market has defied all expectations for years. We’re in the one of the longest bull markets in history, which has also coincided with some of the worst economic growth numbers ever recorded, and that obviously isn’t sustainable. Every day that passes, the odds of our economy crashing go up a little more, and the investors who know this are getting out while they still can.
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If it happens like this it would be a massive deflationary spiral. There may be some fear motivation propping up PMs but pretty much cash would be king up until the next QE.
Cash? LoL. Another 4 letter word that will become worthless as the NWO Banksters forces everyone to crypto digital IOU’s. They will cancel your debit cards and issue crypto cards. And do it over a long weekend Bank Holiday. Remember the people in India carrying wheel barrows full of worthless Rupie money to the banks hoping to convert it. They only got a 4 hour notice their money would soon be null and void. Think your US cash is still something special? Bwhahahahaha
The stock market cheerleaders are selling you stuff they want to dump. Nothing new here.
A lot of smug 401(k) holders are about to get their asses handed to them (again). You would think people could remember farther back than the last few years, especially with that innernet thang and all.
Biscuits, bullion and bullets. The rest is worthless
Gold. It is a four letter word.
Do you have bee hives. Honey is natures gold. It is the oldest known sweetener. Buy or make bee hives. Insulate yourself from hard times. Good nutrition. Good preservative. Tradable. Honey is the food of the gods. Bee hives are the prep of the wise man.
If you have honey, you can get anything else you want. Honey will never go bad. It requires no preparation. It requires no refrigeration. It does not need to be canned. Just a teaspoon can give you energy on a long hike. Just a teaspoon can prevent starvation.
Look up Acid – Alkaline Food List on the web. Learn why it’s important to reduce the acidic levels of your blood.
Burdock, Dandelion, wheat grass and nettle leaves, to name a few. All free food in yards, ditches and woods that surrounds us. These plants, in fact, will help remove the chemicals from body, cleaning the liver and blood and remove bloating.
Most roots/tubers can be eaten if boiled.
Even pine tree needles, as a tea, will provide vitamin C in a pinch. It’s hard to starve when lost in the woods during growing season.
Several sources of wild edibles exists on the web and in the books stores. Read up, then go out and get your nature boy merit badge signed off.
B from CA… yeah but how do you know good store bought honey from lesser products? The price? Much of it is said to be filled with other additives. Not everyone can have the means to produce the real thing.
Both zerohedge and Reddit have articles that talk about even the VIX is totally manipulated.
How does a totally controlled and manipulated market crash? Especially when Democrat run cities and states have all their pension funds invested there?
I’m not prediciting a crash, but a correction over the next two months should be expected.
once congress and the president get back from vacation, they’ll be dealing with north korea, the budget, the debt ceiling, Russia investigation crap and the fed will actually be taking money out of the mkt starting in September; tell me that’s not going to make the market jittery.
I’m shorting all rallies in the next two weeks. sure, it may go up a little; but the odds are it goes down over the next two weeks.
“Crash/correct” is like the finish line for race that is already underway.
Yeah it(stockmarket) may have a volcano under it but its got a hellova lot more missed dates that were called for its eruption. It won’t happen till its supposed to happen.
Yellowstone? The market is more like a STD infested tranny
See how all that fake news on Yellowstone earthquakes last week skewed so perfectly into the stock market being a super volcano this week. Cute.
“She’s gonna blow, Jim!”
Hey suckers, let it ride. Put it all on Red.
The Stock Market is one big Shit Sandwich, you find this out when you take the first bite.
Mind ya’ll, I’m not particularly biased or have much intrinsic prejudice; however, I expect the same in reverse. To those who alienate me as a Caucasian Christian male – solely for possessing those traits, I have no mercy or caring for. This link exhibits the worst of economic sanctioning and lack of inclusiveness I’ve read in sometime:
Flat wrong. It is just the wrong move by any nation, culture or segment of humanity. And that is the real issue, isn’t it? Those who publish this notion are showing the real sense of self-convinced superiority over all the rest of the world. Big mistake. Big big mistake.
The stock market is like gambling at a casino, the house rakes in the most cash always. Can’t trust the banks, can’t trust the mattress, who and where can be trusted?
How man of you that are cussing the stock market have ever made any money in the stock market? just wondering.