oh you've waited long enough let's talk about the things that are going to spike oil prices all of these are terrible I hope they don't happen you hope they don't happen everyone hopes they don't happen but Israel is very likely to invade Southern Lebanon that will be going against Hezbollah and dramatically expanding the war things in the Red Sea are getting way more active now too Germany is even bringing warships there to help out even with the hu Rebels there's all these Supply
disruptions Russia's even bragging about their new space weapon it's basically a nuclear satellite they just throw up there and goes around and they can blow it up whenever they want take get a bunch of satellites but the point is if a war breaks like like a real war like World War III level kind of stuff satellites are going to be getting taken at North Korea knows how to do this Russia China America few other countries too if you take out a satellite that changes everything including missile
defense systems coordination of militaries everything goes down and the only other way you get internet is through cables in the bottom of the ocean which are so long such a soft target that it's absolutely asinine to try and have any kind of Defense to protect them
you guys know that I watch a lot of interviews I read a lot of Articles see a lot of videos and I'm pulling out a few of my favorite things I've seen over the last few days and they're all telling one single story they're all talking about this bizarrely overvalued stock market speaking of this bizarrely overvalued stock market the first article I want to mention is from Yahoo finance the bizarrely overvalued stock market is poised for a big correction and the smart money is moving into Cash
indicators are pointing to a major correction coming for stocks Market strategist Paul dietrix says says the market is bizarrely overvalued and the smart money is moving into cash when he's talking about smart money he's talking about Elon Musk Warren Buffett some of the big investors who are considered smart money maybe because they have the most of it but there's plenty of red flags that he get to in this article I want to bring up red flags are rising in the price to earnings ratio for the S&P
500 and multiples mirror levels that were seen prior to the dot bubble crash and we'll get into the.com crash a bit later in this video because we're talking about the Q ratio and how the market came down so quickly from that overvalued position but let's get back into this bizarrely overvalued stock market article every single indicator seems to tell us that we're in a historic historic bubble dietr said it's hard to look at that and then see that we're not going to see a major major
correction coming now is not the time to be putting new money in the market the biggest indicator of a coming correction of smart money investors who are moving out of the stock market and into safer cash Investments and besides ones I mentioned earlier he also mentions here the Walton family they're the ones who are The Heirs to the Walmart Fortune Empire speaking of Warren Buffett that leads us right into the next article I want to bring to your attention this is from CNN before the Bell Warren Buffett's favorite Market
indicator is flashing red widely known as the Buffett indicator measures the size of the US Stock Market against the size of the economy by taking the total value of all publicly traded companies and dividing that by the quarterly estimate for gross domestic product I can tell you that this is a very effective indicator for anticipating stock market bubbles that are about to pop Buffett Brookshire hathway says that reading of 100% is fair if it's closer to 70% stocks are at bargain prices and
if it's anywhere near the 200% Mark investors are playing with fire the indicator is currently sitting near a 2-year high at nearly 190% the last time the indicator was this high was in 2022 where it hit 211% and the S&P 500 dropped by 19% over the year and this next one comes from Barons which holds a place in my heart because my very first first first interview ever was with Barons I went to the bookstore and went bought a copy of the Barons newspaper and then my coordinate I thought I had made
it so this is from Barons three signs a bull market is about to Tumble number one overvaluation such as price earnings price to sales price to dividends ratios but they go on to say that those are notoriously poor for actually spotting the market breakdowns they go on to say wide divergences are another sign think of the Magnificent 7 how they've made an out proportionate size of gains in their stock price compared to what most stocks are doing the markets seem to be going up those seven stocks are doing fine but
there's underneath the surface a lot of stocks are not performing as well as you would think that all stocks are actually performing but most importantly the third thing they go on to talk about a sign of a coming Financial tumble is a struggling financial sector there's been problems with the banking sector you can learn more about it I put even in some of the YouTube short videos I made a new playlist of economic Brilliance and I just put certain sections from things that noi Prince said Frank gusta added
one from Gareth Solway today these are just brilliant things and one of the things that noi Prince talks about is the banking problems that we've been seeing last year in Europe this year so far and the banking crisis that is to come so that is the third sign of a potentially tumbling stock market from this baren article this is the Schiller Cape ratio which usually explains or points out overvaluation there's being a change of 2.25% from last month and it's up 21.54% from one year ago here if you look at
the all-time chart you can see here it's 1929 people are talking about permanent Prosperity anybody who thought the market was going to go down would be pillarization Incorrect and why the market can keep on going sort of like now permanent Prosperity right now we're talking about well we've got all this AI it's different this time because of AI but here's the big one the granddaddy the dotom bubble the cape ratio got to an all-time high at that point got to an alltime high of 44.1 n with the
exception of the dotom bubble and the stimulative spending in this period of time with the exception of those two this cape ratio has never been higher the higher it goes the more likely we are to experience a stock market recalibration the coming weeks months quarters now we get into one of my favorites and you guys might have heard me talking about this exact same thing 10 years ago this is the Q ratio you basically I'm going to tell you simply super simply they basically take the value of all the stocks and divided by
the cost to replace all of the assets of those stocks this one is from advisor perspectives the Q ratio you can see the chart here there it was in 1929 it hit 1.06 hit it 1.08 right before the beginning of World War II and then you can see it dropped a lot you can assume from that that the stocks at that time declined of course but let's skip way ahead here Doom bubble recent highs stimulus spending and now we're approaching those levels again every time the Q ratio in history gets above
1.0 it always overcorrects and sometimes that overcorrection can be quite extreme when you're hearing things like most stocks going down 85% and I'm not saying that's going to happen I'm just telling you I'm showing you some things I saw that I agree with that you can decide for yourself if you agree with them the Q ratio right now is at 1.59 that is a mass massive warning sign if people tend to take the warning now for this one I had to go pretty deep this is from the financial accounts of
the United States from the Federal Reserve this particular table I'm showing you is a household net worth and growth of domestic nonfinancial debt so said another way you can look here and see what the households net worth is on average on certain years when I was looking at this information the other night I saw something very interesting house prices you follow them here along with me they increased a little bit measurable maintainable not too much at once but it was right here that all of a sudden host prices jumped
up on a percentage basis more quickly up to $150,000 and I said what happened there and then you look back and go well I don't know what happened around that time oh yeah there's all the stimulus measures and all of a sudden your host price is a lot higher all prices are a lot higher your groceries precious metals diamonds and these numbers here are all about how much the debts have grown federal government debt grew by 5.4% in 2014 but in 20120 federal debt grew by 24.1% that is a problem between down
here to last year quarter 2 3 and four federal debt grew 12.7% 10.6% 10 % that is absolutely wholly unsustainable in any possible way the Deb bomb is going to hit us in the face no one has made any solutions how to get out of this and when the unemployment rate declines or the GDP Rises a lot of times that's because the federal government created a bunch of new jobs but let me ask you after seeing all this and I don't have a horse in this race I'm just trying to find out what's going to happen ahead of time so
I can benefit from it or help you benefit from it what do you think about this bizarrely overvalued stock market just think about some of the things we talked about in this video the cape ratio sign said the stock market is about to Tumble Buffett's indicator flashing a red warning signal how are you going to act how are you taking this information in are you agreeing with it what are you want to do how are you going to better your position help the people you care about and be in a better place a couple years from now than you
are right now seriously there's a value in knowing what's going to happen ahead of time because there's different options you can take to enrich yourself build your wealth when that happens if everything we're talking about here plays out is there any way that you could imagine that you could have landed on a good place or made a few dollars here or there but just remember that there's never a certainty all we're talking about here or all we're talking about ever is just based on
probabilities what is most likely to happen not what is going to happen I've never told anyone what is going to happen you're going to want to keep an eye on all of these things we talked about today other things like this as well you want to keep an eye on what's going on in the macroeconomic environment in the focused stock market environment here at home you want to keep an eye on the right headlines and understand what they mean the good news is that you can make all of that happen right now stay connected
with us by subscribing to the channel thank you so much if you want some of our free learning tools or you want to see why the Peter Lees newsletter is one of the most popular Financial newsletters of all time swing over to Peter leads.com and you can learn all about it
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