The Historical Stock Bubble, Idiot Stocks And Gold

The Fed has blown the current stock bubble to an unprecedented magnitude. While the most outrageous overvaluations are concentrated in the tech sector, the valuation insanity has engulfed the entire stock market. Bubble chasers ran Hertz, a bankrupt company that will either liquidate or restructure, up to a valuation close to $1 billion after the Company filed for bankruptcy.

Perhaps the poster-child for this historic stock market Hindenburg is Tesla. Its valuation makes a mockery of our markets and shows what a complete farce the regulatory, legal and judicial systems have become in our country. It is the perfect reflection of the Banana Republic into which the U.S. has transformed over the last 10 years.

The precious metals sector is just getting warmed up. Since late March, when the Fed opened up the floodgates of its digital money printing press, gold is up 21%, the SPX is up 37%, silver is up 54% and the mining stocks are up 86%. Expect the large cap gold/silver producers to produce another round of big earnings beats for Q2 and Q3, which will drive the mining stocks even higher.

Lior Ganz invited me onto his Wealth Research Group podcast to discuss the current stock market insanity and what’s ahead for the precious metals sector:


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2 thoughts on “The Historical Stock Bubble, Idiot Stocks And Gold

  1. One of your most personal and cogent explanations yet Dave.
    The masses are not stupid and you speak to the collective Zeitgeist.
    If the markets and the 1% are perceived to be favored by Trump, then he has a problem.
    In the end – it all will revert to the economic natural mean, and we will have the reset.
    Thanks for the honest evaluation and options strategies to be ready for that moment in time, WHENEVER it occurs..

  2. The market has a seat for every ass. Don’t know when it will end
    but when it does it will be epic. Looking for a pull back in metals
    similar to March when the equity market tanks. I will be adding
    to the stack and believe it will be the last dip before metals go
    spectacularly higher. Watch Ag prices (Beans-Corn) this week.
    Under planted and a major heat wave hitting the Midwest.

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