‘This is a very dangerous market’

themarketNZZ/Christoph Gisiger/7-18-2021

Ramirez cartoon on the speculative trading bubble

Cartoon courtesy of MichaelPRamirez.com

“This market is insanely overpriced. The price-to-sales ratio for the S&P 500 is at 3x. That’s 30% above the peak of 2000 which was crazy. Market cap-to-GDP is at record highs, too. Basically, every indicator other than the P/E ratio is at a record high. The only reason the P/E ratio is slightly below the 2000 record is because of all the financial engineering that’s done to try to pump up the earnings. As insane as the 2000 bubble was, this is more insane – and it’s broader. It’s a direct result of the Federal Reserve and the other central banks pumping enormous amounts of money into the system.”

USAGOLD note: High Tech Analyst’s Fred Hickey and Christoph Gisiger cover a lot of ground in this wide-ranging interview from the stock market and economy in general, to individual stocks and a short section on gold.

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