“This Looks Like The Market Peak”

Stocks, houses, commodities, Bitcoin – the price of nearly everything is up double digits vs last years pre-coronavirus highs.

Have the trillions in stimulus ushered in a new bull market in, well, everything? Or have they helped blow the biggest asset price bubble in history?

Macro analyst Wolf Richter suspects the latter. And he doesn’t think we have much time left before it bursts.

In an interview with our friend Adam Taggart, Wolf concludes we’re seeing a mania that will likely pop in the same manner as all that have preceded it, he has another reason for expecting lower asset prices ahead.

We are clearly heading down the path towards much higher inflation. And in Wolf’s eyes, that will eventually force the Federal Reserve to start tightening at this point — something that seems unimaginable to many today’s market participants, who have come to see the Fed’s 10+ years of easing as an eternal constant.

But regardless of whatever laughably low number is reported by the government’s CPI (the usefulness of which was thoroughly debunked in our recent interview on the Chapwood Index), inflation and its impact on prices is starting to run rampant.

We are primarily funded by readers. Please subscribe and donate to support us!

You’d have to be blind not to see it looking at the housing market.

Wolf reminds us that inflation is bad for banks and ultimately bad for the fortunes of the top 1% (the twin powers running the current system), and once they start feeling enough pain, they will apply tremendous political pressure for the Fed to tighten — something he sees could potentially happen within the next year.

And that, along with the accompanying higher interest rates, would wreak havoc with today’s highly-stretched valuation multiples, over-leveraged zombie corporations, and the ballooning federal debt.

If you’re looking for ways to protect your portfolio, and agree that now, more than ever, is the time to partner with a financial advisor who understands the nature of the risks and opportunities of today’s economy and can craft an appropriate portfolio strategy for you given your needs.

Consider scheduling a free portfolio review. To get started, answer these easy questions.

Even if you already have a financial advisor you trust, take this free opportunity to learn about a surprising alternative for safeguarding your wealth.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.