(Video) The Last Time THIS Happened, It Was 1929 and 2000! Have You Followed This?

in #money7 years ago (edited)

The stock market is in a constant state of economic acceleration and hardship in recovery. These are cyclical events. With central planning and state intervention, the intention is to create a more predictable, ever expanding market. Sort of like having 1 season in the weather. The issue is that central planning always fails, distorts the markets, and favours one group over another.

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In This Episode:
The stock market is in a constant state of economic acceleration and hardship in recovery. These are cyclical events. With central planning and state intervention, the intention is to create a more predictable, ever expanding market. Sort of like having 1 season in the weather. The issue is that central planning always fails, distorts the markets, and favours one group over another.

Transcript:

the stock market is in a constant state of economic acceleration and hardship in recovery these are cyclical events with central planning and state intervention the intention is to create a more predictable ever-expanding market sort of like having one season in the weather the issue is that central planning always fails distorts the markets and favors one group over another you came here for the truth so let me unveil that for you today we are going to look at this one particular indicator and then I want to connect that in with a few other points let's begin with this Robert Shiller most people know him by now the Nobel prize-winning economist Robert Shiller believes investors should continue to own stocks because the bull market may continue for years this article is from May of 2017 alright and essentially what his reasoning behind that was that it can still go higher and higher look at what happened in the year 2000 where the valuations were all off yet it just continued all right so that's May 2017 fast-forwarding the present time as of this recording Robert Shiller urges caution on the market we're at a high level and it's concerning so he's finally starting to come around perhaps we'll see market valuations are on you and unusual highs and the only times that they've been higher is 1929 and the year 2000 and what we're talking about here is the cape or the cyclically adjusted price earnings ratio so this is one of the more famous indicators that are out there to determine our stocks overvalued or undervalued historically the number is about 17 and right now we are at about let's check it out in this chart 30 so this number continues to get higher and higher and higher and you can see for yourself that essentially the only time has really been higher is the tech boom and bust and even in 1929 look we're basically at the same point right now if it continues on this trajectory it's not going to take long what we need to understand is that yes it's only one indicator and we could form permanently new heights but just take a look at this I mean we're talking about over a hundred years of data and we can see that things have really changed now surely with enough money printing and everything else you can get these to be pumped up but it doesn't last forever it really doesn't the further you push it up the harder it will fall back down that is a fact the way it is the CBO the Congressional Budget Office income taxes are up nine point five percent next year but that climbs more than one trillion dollars the amount of debt that is out there on every single level is absolutely astonishing its record-breaking and there's no way no way that it is sustainable it can be paid back and many people would argue that who exactly are you paying back well you don't understand that governments do not do anything with the monetary system or at least to some degree we're looking at the central banks and the central bank's loan money to the government at interest so when you say that we owe it to ourselves you don't understand these are essentially private banks loaning it to the government that's the way it works we don't owe it to ourselves that's really a false claim let's move on right here one more note one of the main reasons Congress is getting so little done is because they will have 218 days off in 2017 look at this right here practically the whole year through on vacation I'm sure everybody working a nine-to-five job is hoping that their schedule looks a lot like this I mean it's crazy to say the least you have those in Congress always have to vote on these particular laws which are thousands of pages in length they have to read through it a lot of times in a 24-hour period or less they're not reading it and ultimately they sign it anyway that's just the way it is it's really just the way it is and it is truly sad to see that because these are the people that are making the laws they had the power of the purse they are able to decide what happens I mean truly they have more power than governments and it doesn't I should say presidents or prime ministers but it seems like the Congress or Parliament's are taking sort of a a backseat to laws that are being made these days and it is something that really is that terrible for liberties there's no doubt about that if you found this video informative please give me a thumbs up and if you found the video informative I know you'll find my books the money GPS and my latest release global economic collapse even more informative you can flip through these books at Amazon they have a look inside feature so you can actually flip through the pages of the book to see if you'd like them if you want to know what the first book is about it's the for asset classes and how to profit from them whereas the new book takes on familiar concepts but then I get into the money GPS strategy of tax incentives reducing your debt becoming self-sufficient solar panels all that good stuff so you can check that out at the money GPS comm or Amazon take care

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What's going on with the PE ratio? Seems pretty obvious to me.

I've just seen, I think it's interesting to see :)

It's one of many indicators and it truly shows that stocks are building up froth

I guess what you say a lot of truth :)

We have one season since 2008, winter. Central banks and governments made it!

Agreed. Permanently bad.

gave a few upvotes been watching you on youtube thought id come here n share a tiny bit of Steem love also besides the google ad sense