Are US Stock Markets Still in a Bull(shit) Run?
This post is opinion and should not be taken as advice. all information found herein is fake news.
When I call BS on the current US stock market, sometimes others fail to understand why I'm so negative. It's not that I am jealous or upset about missing out on something, but rather because I fear for the long term consequences of a market where gains are being made off the backs of the working class through insane money creation, and even worse a lot of people on the ground think this is just grand.
Many of the bloggers and vloggers who follow the stock market are self-described conservatives, and are also very much opposed to socialism, yet this massive bubble in the US Financial system is going to bring about socialism in America due to the wealth inequality it is creating. For every trillion dollars that the Federal Reserve and shadow banks around the world create to sustain this destructive bubble, how much is going into the real economy?
The answer is plain as day: very little (yet). It would be ok if newly created money was backed by something, anything, but there is no foundation holding it all up. The emperor has no clothes, and he's okay with this.
What is concerning is that many of these so-called conservatives are having a hay-day with all the free money in financial markets, while in the next breath getting upset about Bernie or Warren talking about bailouts for the people. You can't have your cake and eat it too. Opening up the floodgates on the one end is inevitably going to flood the consumer economy at the other end, it's not if but when this will occur.
For example, if you personally are making gains in the US Stock Market, and you realize those gains (cash out), are you going to to keep that money in financial markets, or maybe you want to start a business, or maybe buy a house or a boat, or maybe a new car?
My point is, most people making bank in the stonck markets are eventually going to spend it in the real economy, otherwise they're only gaining on paper and are fooling themselves. I hate to say it, but the gold bugs have the strongest case right now. I'm more of a silver bug given the risk involved with carrying and storing gold, but I just can't help but wonder how tens or even hundreds of millions of people can be fooled into thinking they are getting rich off a market that is going to end up devaluing their wealth tenfold or even a hundred fold in the next decade once the chickens really come home to roost.
But, it's different this time, right?
Here's some screenshots of some high cap US stocks right now, paradoxically fueled by fraudulent monetary policy and buybacks. Take a good look, because this kind of mania is not going to happen again in the US Stock market for a very long time once this run is over:
Apple
Microsoft
Amazon
Netflix
Google
Facebook
Tesla
Even if you don't understand charts at all, it should be apparent that there is a massive bubble. There are millions who have become wealthy on paper, and in order to keep this bubble inflated AND allow investors to cash out, the amount of liquidity needed is literally insane. Just like the titanic, there aren't enough lifeboats for everyone to escape, even if the Federal Reserve is currently crafting more lifeboats in the repo market.
You can't eat your cake and still have your cake. Very soon, we're about to find out who ate all their cake, and it's going to be a sad party that you probably don't want to attend. When is that going to happen? Let's just say the longer this goes on, the more trouble the world economy is in for later. The only way the US is going to rectify this is by implementing a wealth tax to soak up all this excess. there is no other way around it, other than hyper-inflation.
Cause and effect, it cannot be avoided.
Thanks for dropping by.
I used to own all of those stocks. Sold way way too early. Oh well.