Top 8 Reasons to Find the Emergency Exit Before this Fall
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The stock market was trading at an all-time high valuation of 150% of GDP this January. That was indeed the bell rung at the very top. Stocks have since started to roll over, but valuations are still at 140% of the underlying economy. And that is, historically speaking, way off the chart. The average of this metric was around 45% throughout the decades of the 70’s thru the mid-1990’s. Therefore, the market is screaming for investors to hit the sell button now while there are still ample bids left. But, if your complacency and procrastination prevent you from realizing the truly dangerous bubble in equities right now, here are eight of the most salient reasons why you’ll definitely need to find the nearest emergency exit before this fall.
Given the confluence of the above events occurring between now and this fall, it is imperative to watch yield curve dynamics and credit spreads as some of the indicators to get the timing right for when you should be completely and safely out of the door. Pento Portfolio Strategies has several other components to monitor inside the Inflation/Deflation model to help clients not only find a chair but maybe even a luxury coach once the music stops. And even better yet, to help our investors get properly positioned to capitalize on the third massive equity market crash since the year 2000.
Michael Pento is the President and Founder of Pento Portfolio Strategies, produces the weekly podcast called, “The Mid-week Reality Check”, is Host of The Pentonomics Program and Author of the book “The Coming Bond Market Collapse.”