11/26/2014 – An up day with the Dow Jones up 12 points (+0.07%) and the Nasdaq up 29 points (+0.61%).
Over the last year or so I have been whining that there is nothing to invest in. Not to speculate in, but to invest in over the long-term. That everything is extremely speculative and that most stocks are selling at exuberant valuation levels. It’s nice to see that Warren Buffett’s tends to agree.
If you are serious about investing I highly encourage you to read the article above in full. Here is the bottom line. Today’s valuation metrics are extreme and as the chart above suggests we are now approaching 2000 bubble levels. Not a good sign as we all know what happened thereafter.
Yet, there is one primary difference between today’s valuation levels and the year 2000. The blow off top in 2000 was, more or less, driven by sound underlying economics, credit policies and wild speculation. Today’s valuation levels are driven by the same wild speculative factors plus massive credit infusion and no sound economic principals.
Yes, the corporate earnings are fairly good, but it goes without saying that most of such earnings have been driven by massive credit infusion, QE and buybacks. That is to say, take the FED stimulus away and we might find ourselves in the most expensive/speculative market EVER.
Make no mistake, this is not going to end well.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. November 26th, 2014 InvestWithAlex.com
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Warren Buffett: Valuations Are Now At 2000/2007 Blow Off Levels Google