Stocks Peaked 20 Years Ago. US Perma-Bulls are Chasing a Bubble
Updated
In nominal terms, US stocks have gone higher and higher over the last 20 and 30 years. This is priced in US Dollars.
Priced in terms of real money, stable money, the US stock markets and the US real economic growth peaked 20 years ago.
Over the last 20 years we've printed a crap-ton of money to paper over the losses and make ourselves feel richer, but it's all been an illusion. A money printing fueled bubble.
And the most recent cycle peaked in September of 2018, when the Russell first entered into a bear market and when the gold bull left the train station. In terms of what's happening right now: The Russell is sitting at the top end of its range right underneath major resistance. Without big stock buybacks driving the market there won't be enough buying power to send it to new highs.
The Fed can print as much money as it wants but it can't stop a massive global shock. Money velocity is at ZERO. Doesn't matter how much money you print, you can't fix a solvency problem with more liquidity. You can only buy yourself short slivers of time.
Its only a matter of time before economy gravity is respected and the global markets, including the US equities, get absolutely cratered.
Priced in terms of real money, stable money, the US stock markets and the US real economic growth peaked 20 years ago.
Over the last 20 years we've printed a crap-ton of money to paper over the losses and make ourselves feel richer, but it's all been an illusion. A money printing fueled bubble.
And the most recent cycle peaked in September of 2018, when the Russell first entered into a bear market and when the gold bull left the train station. In terms of what's happening right now: The Russell is sitting at the top end of its range right underneath major resistance. Without big stock buybacks driving the market there won't be enough buying power to send it to new highs.
The Fed can print as much money as it wants but it can't stop a massive global shock. Money velocity is at ZERO. Doesn't matter how much money you print, you can't fix a solvency problem with more liquidity. You can only buy yourself short slivers of time.
Its only a matter of time before economy gravity is respected and the global markets, including the US equities, get absolutely cratered.
Note
Man just look at the charts since 2000. It's striking.In paper terms: higher high, higher high, higher high
In gold terms: lower high, lower high, lower high
Stocks have been in a 20-year bear market priced in gold.
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