“Valuations are extremely high, in fact, unprecedented…higher than the Great Depression, market crash of 1987, dot com bubble, great financial crisis. We’re at levels exceeding any time in history…It’s not really a matter of if, but when, stocks are going to fall out”— Damian White, Scottsdale Bullion & Coin Precious Metals Advisor
Stocks are currently overvalued.
In fact, as Damian White shares in this week’s Gold Spot with Todd Graf, stocks are so overvalued that we are in a historically significant moment.
Right now, stock market valuation is higher than it was before the Great Depression, higher than the stock market crash of 1987, higher than the dot com bubble, and higher than the Great Financial Crisis.
The numbers are clear warning signs.
The bubble will eventually burst. When it does, we hope you are prepared to protect your wealth with a diversified portfolio of safe assets like gold and silver coins.
When Will the Overvalued Market Bubble Burst?
We may not know exactly when the market will correct, but we can anticipate that day on the horizon.
The Consumer Price Index (CPI), as we’ve mentioned before, sits around 6% on a month-over-month basis, which is astonishingly high. This tells us we have an extremely high level of inflation. Current stock market prices don’t reflect the true price of goods and services.
Take the brand-new electric vehicle company Rivian, for example. This company has been publicly traded for less than a week, and it has already reached its $130 billion market cap. They’ve barely made 200 cars and we can already see how overvalued their stock is.
Keep in mind, the federal government fuels the current inflation spike by pumping paper money into an artificially buoyed economy. Meanwhile, we see how the country struggles with supply chain issues and rapidly rising costs of rent, food, and other necessities.
From our corner, we are watching the stock market plump up with a false sense of security, knowing a day of reckoning is ahead. Where will your money be when the other shoe drops?
Protect Yourself from Stock Market Fallout with Precious Metals
How can you protect your wealth from inevitable market fallout? This is the question our clients have been asking. We are here to guide you toward a healthy and diversified portfolio, anchored by the tangible assets of gold and silver.
Precious metals have always been a safety net for wealth in tumultuous times. Experts believe that precious metals are, in fact, undervalued right now.
Start thinking about how to protect your assets from shock waves in the market. Investing in physical gold and silver can help you weather the storms of an inflated economy. Get our free precious metals guide to start learning how.