The traditional financial media will tell you that this time is different. They’ll promote the notion that ultra-low interest rates justify any price for that electric carmaker or that cannabis cultivator. We aim to explain why they’re wrong.
Right now, you’re participating in the broadest-based stock bubble in U.S. history. Not so sure? That’s why we’re chronicling the effervescent details.
All the facts, data and descriptions fit to reveal. That’s what you’re going to get at TheStockBubble.com.
What you won’t get are bearish predictions or “big shorts.” You will need to make your own decisions on how to profit and/or how to protect yourself in a frothy marketplace.
Granted, we have an insurance plan for portfolios. (Read more about sidestepping stock disasters here.) For this web log, however, our purpose is to relay information that you’re not getting elsewhere.
For example, the traditional financial media insist that stocks are always a great investment, regardless of price. The truth? Acquiring stock at valuation extremes is detrimental to long-term investment returns.
The stock market did not need to become unhinged from economic reality. Yet, the Federal Reserve committee members focused on engineering a stock price wealth effect.
Want proof? Here are specific quotes from our central bankers:
- Jerome Powell in 2012. “I think we are actually at a point of encouraging risk-taking, and that should give us pause.”
- Richard Fisher in 2016. “What the Fed did, and I was part of it, was front-loaded an enormous market rally in order to create a wealth effect.”
- Eric Rosengren in 2019. “If you look at the last two recessions, they were not situations where inflation got out of control. They were situations where asset prices went way up and then came way down. So if your goal is to avoid recessions, I think we need to be pretty focused on asset prices, not just inflation.”
Easy money with rate cuts. Easy money with electronic money creation. Easy money with asset purchases. A decade’s worth of “emergency” stimulus.
And what do we have to show for it? The largest stock bubble in the history of humankind!
At this moment, central bank planners at the Federal Reserve are intervening DAILY. Without intervention, the modern-day stock bubble would burst. With ongoing intervention? Only time will tell.
Maybe you’d like to explore ways to diversify more effectively. Or perhaps you’re intrigued by hedging. Or you might even wish to ride the hyper-inflated balloon as high as it will fly.
Whatever floats your kayak, you can get straightforward specifics at TheStockBubble.com. Plenty of essentials. Only a dash of doom-n-gloom.
Special Note: If you’d like to minimize bear market risk (e.g., 2000-2002’s tech wreck, 2008-2009’s financial crisis, etc.), click here to learn how we protect portfolios.)