Is The Economic Melt-Up About To Melt-Down?
“STOCKS AROUND THE WORLD CONTINUE TO ADVANCE. The trend remains upward and although nearly every method we know of for measuring market sentiment is preposterously over-extended to the upside, and although nearly every method we know of to measure relative value is equally over-extended to the upside, the great game of investment musical chairs continues.”
“As happened in the dot.com Bubble of near the turn of this century, prices were egregiously, preposterously, stupendously, stupidly over-extended to the upside and then continued to become even more egregiously, preposterously, stupendously and stupidly over-extended for months and months and months.”
“The “Melt Up” has begun in earnest and it will stop when it stops and not a moment before.”
Usually, when people start bandying about phrases like ‘paradigm shift’ and ‘nothing can beat this market’, is about the time it crumbles.
The more it goes up without reason, means the more likely it is to crash without reason.
The stock market run-up since 2008 has been enormous (20,600! as of this writing) and I personally have not played it while having ‘missed out’ on potential massive gains. Do I regret it? Not for a second! Why? Because the risks (at least as they seemed to me) were too high.
The ONLY reason we’ve seen this run-up is because of the Fed’s digital printing press. “The Fed, along with its foreign central bank counterparts ARE THE MARKET now” (I read that quote in a ZH comment thread and couldn’t have said it better myself…).
It’s ALL propped up. Phony valuations. There’s hardly anything ‘real’ about it. Will the exuberance continue to DOW 30,000?? Or will a ‘reality glitch’ begin the rush for the door…
It’s just crazy.
You might be saying to yourself, “What does it matter? I don’t have any stock investments so who cares?” Well, you should care in that all of our lives will be affected when this thing collapses.
Many of you who are reading this are likely ‘preparedness-minded’ and you won’t be hurt as much as others. However ‘if’ (when) this thing crashes to the ground you will be impacted as we enter unknown territory – especially with the historical political unrest going on throughout the world and our nation right now.
I write this short article because of my ongoing amazement how ‘the system’ remains propped up. DOW crossing 20,000 and going higher is just incredulous. I have no idea how long this charade will continue, but instead of jumping on the bandwagon I continue to convert fiat currency to tangible practical assets here on the homestead. Continuing to do my best to separate myself from the system as much as can be done. That to me has been the best investment…
-Eliminate all debt
-Move to rural location
-Property that enables food production, privacy, security
-Alternative energy to power the house
-A bigger garden for food production
-More food preservation equipment and ‘know-how’
-Multiple sources for home heating
-Practical home improvements
I could go on with examples, however in other words my best investments are those which are TANGIBLY focused on self-preservation, self-sufficiency, and self-sustainability. The heck with the stock market… I’m getting ready for the meltdown…