If you feel anxiety and trepidation looking at the record debt level financial system during the last few years, you are likely part of the engaged majority.
Readers and listeners here understand that our economy no longer functions as advertised.
Financialization of the US economy over the past near 50-year fiat currency regime timeframe has skewed the relationship of value in favor of price, specifically in favor of higher prices for financial assets vs. commodities and real-world goods.
Unprecedented support government central banks have provided financial intermediaries and asset holders during and in years following the last 2008 bear market have created noticeable price distortions. This phenomenon has forced investors to ask serious questions about the usefulness of traditional indicators in assessing asset values.
It remains unclear how meaningful traditional economic data like GDP and unemployment are in the face of record global debt levels and aging populations most specifically here in the USA with our baby boomers.
There have been three intermediate price corrections during this secular bull market in US stock prices. Most notably, the periods between the summers of 2011 and 2012, followed by 2015 into 2016. They both proved out to be head-fakes for investors who were expecting the stock market to enter a new bear market territory.
With the S&P 500 and Nasdaq Composite climbing above their all-time closing highs last week, will this last year’s declines prove similarly inconsequential, leading us ever higher in an unusually prolonged bull-market? If not, when will this stock market bubble pop?
In the following embedded episode of the Hidden Forces podcast, host Demetri Kofinas speaks with Kevin Smith and Otavio Costa of Crescat Capital.
The focus of this podcast is on specific indicators that could validate an upcoming bear market hypothesis, and Crescat Capital is actively placing bets on gold rising and US stocks falling in value ahead.
Below is just over 40 minutes of them explaining their market view at the moment:
Crescat Capital’s Kevin Smith and Otavio Costa make their case for why this stock market rally is different and how they are positioning themselves and their investors for the stock bear market to come.
The Hidden Secrets podcast gets produced and hosted by Demetri Kofinas (the former producer of RT’s once highly followed Capital Account TV show).