Tuesday , 19 March 2024

Bubble Alert! Prepare NOW Before the Carnage Hits (+2K Views)

The market is now officially in the largest bubble relative to thebubble prick economy in history according to the stock market capitalization to GDP ratio, which, incidentally, is Warren Buffett’s favorite means of valuing stock.

The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read.

Bill King of The King Report notes that based on this metric, stocks are now valued at 144.15% of US GDP, surpassing their previous peak set at the absolute top of the Tech Bubble in March 2000.

GPC1818

While some pundits may point to the economy or the Trump economic agenda for this move, the reality is that everything the markets have done since 2008 has been driven by the Fed creating a bubble in US sovereign bonds, also called Treasuries, and because these yields represent “the risk-free rate of return” for the entire financial system ALL risk, including stocks, adjusted accordingly.

…I am growing increasingly concerned about…what’s coming…We’re currently in “late 2007” for the coming crisis. The time to prepare for this is NOW before the carnage hits.

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