Is Stock Market Bubble about to Explode?
Mike Maloney of Rich Dad fame is the author of Guide To Investing in Gold & Silver: Protect Your Financial Future
In this video presentation Mike Maloney presents some convincing graphs that illustrate the extreme stock market bubble that he believes is setting us up for an extreme crash.
These historical graphs show the cyclical bubbles and subsequent crashes over the past 50 years.
He also presents some graphs from Dr. Schiller who illustrates the same point.
We have never seen these extremely low interest rates and wide swings in the financial health like this until central banks and the FED started manipulating the financial markets with various programs such as quantitative easing.
Dr. Schiller shows the trailing stock P/E is over 26 which in extreme bubble territory
The demographics in the United States, the Middle age to old age ratio shows a significant correlation with the P/E ratio. In the study 40-49 was defined as middle age and 60-69 was defined as old age. They just took those two numbers and made a ratio. In their paper written in 2011 there was an extremely high correlation between this ration and P/E ratio.
He uses the FED’s own data to show the financialization of the US government. The Federal government’s income is indicated by the tax receipts. The government’s income crashes when the stock market crashes. Since the government is desperate for money they pass a lot of new laws whose goal is designed to bring more money in, not benefit the US citizen.
Mike has long been an analyst of the precious metals markets. He was the precious metals adviser to Robert T. Kiyosaki of Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
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