General Stock Ideas

[bigworld]

ombow: The Stock Market long ago decoupled from the state of the actual economy. Stock market performance is now based on how much money the Fed is pumping and how much Fiscal stimulus the Market thinks the politicians will provide. I just listened to an interview with Michael Pento. He says the current cumulative Stock market valuation is now at a record 185% of GDP. The previous record was in March of 2000 when the dot.com bubble had us up to 148% of GDP. The mean valuation over a century is close to 70% of GDP. And the Pento interview was from last Thursday. After today's rally we might be closer to 190 % of GDP. So we are in uncharted territory valuation wise. Which is why I own almost no equities except precious metal miners, which are still under or fairly valued. When the crash happens, and it will, it is going to be epic. The Fed would probably love to see the crash happen during the upcoming election crisis. Then they can blame that event and deflect the blame away from their own mismanagement. One thing I can predict is that whatever the high we see in the Markets up until the day the crash starts will be the high water mark that you or I will see in the remainder of our lifetimes. Top to bottom it will be worse than 1929.