Fed’s Misguided View on Inflation Drives Stock Bubble

By Rob Williams – Re-Blogged From Newsmax

David Rosenberg, the widely cited chief economist and strategist at Gluskin Sheff & Associates Inc., said the Federal Reserve may be fueling another speculative stock bubble with loose monetary policies.

The central bank, which is undergoing a significant leadership change, may err on the side of caution by keeping interest rates too low for too long, he said in a Jan. 11 report obtained by Newsmax Finance. That would continue to give investors greater incentive to seek bigger gains in riskier assets like stocks and junk bonds.

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Bubble Stock Investing

  By Bob Shapiro
I invest in Gold & Silver, mostly miners.
Most people, I expect, are unwilling or don’t have the temperament to put all their eggs in one basket. The most familiar of the highly liquid investments is stocks – shares of most of the companies you know and love plus many that you’ve never heard of.
But, by pretty much any objective measure, stocks are in Bubble territory today, and the FED has started a tightening cycle – and has promised major tightening leading up to the mid-term elections this November.
I suggest that you still can make money in stocks today, using a strategy that Hedge Funds originally were designed to use – buy stocks that you think have the brightest prospects and sell short stocks that likely will be dogs (by comparison). If your ‘good’ stocks indeed do better than your ‘bad’ stocks, then you’ll make money. It matters not whether they both go up, both go down, or the ‘good’ is up and the ‘bad’ down, so long as the ‘good’ does better than the ‘bad.’
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Stock Markets Hyper-Risky 2

By Adam Hamilton – Re-Blogged From http://www.Zealllc.com

The US stock markets enjoyed an extraordinary surge in 2017, shattering all kinds of records. This was fueled by hopes for big tax cuts soon since Republicans regained control of the US government. But such relentless rallying has catapulted complacency, euphoria, and valuations to dangerous bull-slaying extremes. This has left today’s beloved and lofty stock markets hyper-risky, with serious selloffs looming large.

History proves that stock markets are forever cyclical, no trend lasts forever. Great bulls and bears alike eventually run their courses and give up their ghosts. Sooner or later every secular trend yields to extreme sentiment peaking, then the markets inevitably reverse. Popular greed late in bulls, and fear late in bears, ultimately hits unsustainable climaxes. All near-term buyers or sellers are sucked in, killing the trend.

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98,750,067,000,000 Reasons To Buy Gold In 2018

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

World equity index market capitalization touching distance of $100 trillion dollars at beginning of December
– Key indicators across global financial markets are looking decidedly bubble-like
– Little indication that we are through the worst of the financial crisis that started in 2007

– Apparent lack of concern regarding the over-heated and overpriced markets
– Since financial crisis gold has climbed nearly 124% in EUR, 190% in GBP and 98% in USD
– Goldcore’s latest podcast covers gold’s role in 2018 in the land of bubbles

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2007 All Over Again, Part 7: Borrowers Start Scamming Desperate Lenders

By John Rubino – Re-Blogged From Dollar Collapse

One of the hallmarks of late-stage bubbles is a shift of power from lenders to borrowers. As asset prices soar and interest rates plunge it becomes harder to generate a decent yield on bonds and other fixed income securities, so people with money to lend (like pension funds and bond mutual funds) are forced to accept ever-less-favorable and therefore far-more-risky terms.

Recall the liar loans that were popular towards the end of the 2000s housing bubble and you get the idea. Lenders were so desperate for paper to feed the securitization machine that they literally stopped asking mortgage borrowers to prove that they could cover the interest.

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The Dumbest Dumb Money Finally Gets Suckered In

By John Rubino – Re-Blogged From Dollar Collapse

Corporate share repurchases have turned out to be a great mechanism for converting Federal Reserve easing into higher consumer spending. Just allow public companies to borrow really cheaply and one of the things they do with the resulting found money is repurchase their stock. This pushes up equity prices, making investors feel richer and more willing to splurge on the kinds of frivolous stuff (new cars, big houses, extravagant vacations) that produce rising GDP numbers.

For politicians and their bureaucrats this is a win-win. But for the rest of us it’s not, since the debts corporations take on to buy their own stock at market peaks tend to hobble them going forward, leading eventually to bigger share price declines than would otherwise be the case.

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