Officially the Biggest Bubble of All Time
By Graham Summers / GoldSeek
The market is now officially in the largest bubble relative to the economy in history.
Warren Buffett once famously stated that his favorite means of valuing stock was the stock market capitalization to GDP ratio. This was the very metric he used when he decided to avoid investing during the Tech Bubble.
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.
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.
As I detail in my bestselling book The Everything Bubble: the Endgame For Central Bank Policy, when the Fed did this, it forced Treasury yields to record lows.
And because these yields represent “the risk-free rate of return” for the entire financial system ALL risk, including stocks adjusted accordingly.
This is why I coined the term The Everything Bubble in 2014. And it’s why I am growing increasingly concerned about the recent moves in Treasury Bond Yields, as they broke above their 20-year downtrend,
What’s coming will take time for this to unfold, but as I recently told clients, we’re currently in “late 2007″ for the coming crisis. The time to prepare for this is NOW before the carnage hits.
Best Regards
Graham Summers
Chief Market Strategist
http://news.goldseek.com/GoldSeek/1515421498.php
Read more great articles here: http://goldseek.com
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).