Since late 2008 the world’s central banks have printed whatever amount of money they deemed necessary to stop the depression and deflation meltdown that started in the second half of that year but there is a limit to how much you can stimulate an economy pointing down… especially one already up to debt levels twice that of the last great bubble boom that peaked in 1929 – 4 times if you include unfunded entitlements. So, where do we go from here? Maybe up a little higher but, more likely, it’s all downhill from here though perhaps that statement is misleading. More like, down a cliff.
While we could only see a 15% to 20% correction this summer – as central banks fire all cylinders before they fail even more miserably – I expect a 70% drop in the Dow by early 2017 – down 80% or higher by early 2020 – and that means the curtains are coming down for the greatest bull market and bubble in history.
Read the original unedited article (with chart) HERE:
Have your say on the subject via:
We’d like to know what you have to say.
Related Articles from the munKNEE.com Vault:
What is unique about this rally is the excessive premium being placed on future earnings and economic growth. Unfortunately, the level and term structure of interest rates are not confirming the broad logic behind these equity market valuations. In fact, they damn that logic. In the past, when high valuation measures occurred and subsequent GDP was weak, the stock market has posted substantial losses. What can we expect this time? Read More »
Warren Buffett’s favorite macro valuation tool is screaming that U.S. stocks are nearing bubble territory. This is a time to stay tactical, focus on income, and look to buy pockets of value as you see them. Read More »
For months numerous articles have been posted on this site substantiating why a stock market collapse of epic proportions is in the cards to happen soon. The basis for such a conclusion are based on a diverse perspective that warrants your attention. With your money on the line – your future quality of life at risk – here is your opportunity to be forewarned and do something about it. Read More »