Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Almost 1% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 6 22 2018
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - June 22, 2018
By: GoldSeek.com

Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan...
By: Mike Gleason

A Trade War Won't Be Good for the Dollar
By: Peter Schiff

Cheap Gold Stocks Basing 2
By: Adam Hamilton, CPA

3 Amigos (SPX/Gold, Long-term Yields and Yield Curve) Updated
By: Gary Tanashian

Sane People Absolutely Know Better!
By: Gary Christenson

How Long Can This Last?
By: Arkadiusz Sieron

Housing Bubble Pathologies, Part 2: Fewer Babies And More Stressed-Out Renters
By: John Rubino

 
Search

GoldSeek Web

 
It's Officially The Biggest Bubble of All Time


 -- Published: Monday, 8 January 2018 | Print  | Disqus 

By Graham Summers

 

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.

 

http://www.goldseek.com/news/2018/1-8gs.png

 

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

Phoenix Capital Research

 


| Digg This Article
 -- Published: Monday, 8 January 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.