The stock market has entered the “melt-up” phase that characterizes the final stage of a rampant stock bubble – or any bubble for that matter. The stock market is more overvalued than at any point in history using just about any traditional valuation metric. At this point, the stock market has become a function of money managers chasing price momentum. They are doing nothing more than gambling with other people’s money in the hopes that they’ll be able to unload their stock purchases at an even higher level on other gamblers.
Pulling back the cloud of propaganda that surrounds economic news reported by official sources (Government, Fed, industry associations and the financial media) reveals an economy that has been heading into recession and a stunning deterioration in the financial condition of the average household.
A study of U.S. households released by Deutsche Bank showed that the median household net worth is lower than it was in 1989. Despite the rise in home values and stocks, over 30% of all households have a negative net worth. A greater share of Americans have more debt than money in the bank than at any point since 1962. Add on to this the fact that overall systemic debt – a record level of auto, student loan, mortgage, corporate and Treasury debt – has reached a record level outright and as a percentage of the GDP.
Silver Doctor’s Elijah Johnson invited me on to his podcast to discuss why the U.S. economic system is headed for a trainwreck and why gold will surprise to the upside in 2018:
The latest stock featured in the Mining Stock Journal has doubled in six weeks. It has potential to be a 10-bagger from here. Click on these links if want to learn more about the MINING STOCK JOURNAL or the SHORT SELLER’S JOURNAL