One of the men that won the Nobel Prize for economics this year says that “bubbles look like this” and that he is “most worried about the boom in the U.S. stock market.” But you don’t have to be a Nobel Prize winner to see what is happening. It should be glaringly apparent to anyone with half a brain. The financial markets have been soaring while the overall economy has been stagnating. Reckless injections of liquidity into the financial system by the Federal Reserve have pumped up stock prices to ridiculous extremes, and people are becoming concerned. In fact, Google searches for the term “stock bubble” are now at the highest level that we have seen since November 2007. Despite assurances from the mainstream media and the Federal Reserve that everything is just fine, many Americans are beginning to realize that we have seen this movie before. We saw it during the dotcom bubble, and we saw it during the lead up to the horrible financial crisis of 2008. So precisely when will the bubble burst this time? Nobody knows for sure, but without a doubt this irrational financial bubble will burst at some point.
Remember, a bubble is always the biggest right before it bursts, and the following are 15 signs that we are near the peak of an absolutely massive stock market bubble: Continue reading »
I am a prepper and I LOVE the fact that the stock market is at an all-time high. In fact, I hope that it keeps going up for as long as possible. Why? Because it gives me more time to prepare for the inevitable collapse that is coming. As I will discuss extensively below, anyone with half a brain should be able to see that a great financial disaster is coming to this nation. If you still doubt this after reading this article, please go check out The Economic Collapse Blog where I have posted nearly 1000 articles that break this down in excruciating detail. Unfortunately, a lot of preppers out there are being really, really stupid right now. Over the past six months, I have noticed a tremendous amount of apathy among the prepper community. A lot of preppers were doing really well for a while, but now a lot of them have apparently decided that we are no longer in imminent danger of an economic collapse and that instead of preparing it is time to party. This is a critical mistake. We should be thankful that this stock market bubble has given us a few more months to prepare. Sadly, so many people out there are wasting this precious opportunity.
It is almost as if most people have forgotten what happened during the last financial crisis. 2008 may as well be ancient history for most Americans.
None of the underlying problems that plagued the U.S. economy back then have been fixed. Continue reading »
Nope, no bubble here… Having traded up to $50 (over 33x Price-to-Sales), it seems hitting every analyst profit target (aside from Topeka’s Anthony) within one hour of its release was enough for most… The ‘profit-taking” has started and now TWTR is trading back below its break price… But do not worry – everyone can rest assured as Cramer just said “we’re out of the woods here.” Of course, as everyone knows, it’s not where you start, it’s where you finish that counts…
“Since September 2011′s $1921 peak, gold has been in correction mode,” Mark Faber tells Barrons in this brief clip, but the overhwleminly bearish sentiment combined with the major accumulation (most notably by China) means “gold prices have probably bottomed,” and some gold mining stocks are well positioned. While Faber has recently expressed concern at the potential for a major correction in stocks, he notes that there are pockets of value worth investigating including European Telcos and Indo-China travel-related stocks. However, the Gloom, Boom & Doom report writer warns that “stocks could be dead money for a while.”
Despite Ron Insana’s insta-dismissal of all things “Austrian”, and Maria Bartiromo’s scoffing at his comments, Mark Spitznagel (who most recently discussed the problems we face here, here and here) ventured on to the unreality channel this afternoon and much eyebrow-raising ensued. Spitznagel, author of The Dao of Capital , explained why he believes “the market is setup for a major crash,” and expects a 40% decline in stocks. The current market “entirely artificial” environment driven by zero-interest-rates and central bank asset purchases, along with valuations and sentiment, has distorted the ‘markets’ in the same way as “in all other major tops in history.” His investing advice is simple, “step aside!” But doesn’t expect many to heed his proven advice, because, “it is the hardest thing to do right now, “and makes you look like a fool.”
“this notion of a ‘catalyst’ for the decline is false”…
If you prefer your business media with a sense of reality – the following 210 seconds is must watch!