The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label 1929 stock market crash. Show all posts
Showing posts with label 1929 stock market crash. Show all posts

Saturday, March 4, 2017

Stock markets now overvalued to levels greater than the 2008 financial crisis and the 1929 crash

Over the past 20 years, and especially since 2009, the Federal Reserve has been using the stock markets as a way to mask the underlying insolvency of the general economy.  It is why every business media outlet and segment pushes what the Dow, S&P, and Nasdaq did on a given day, while minimizing the fact that corporate earnings have declined en masse over the past decade.

Since the election of Donald Trump last November, the Dow has not only crossed the unprecedented level of 20,000, but in a very short time it also soared to over 21,000 in little more than a month.  But what has really happened is that the P/E ratios (Price to Earnings) for companies on these respective exchanges have nearly doubled their historic averages, and are now above the bubble levels seen just prior to the Dot Com crash, the 2008 financial crisis, and even the greatest market event in the nation's history, that of October 1929.

Image result for stock market bubble 2017
So, in the name of history, let us briefly examine some of its most important economic factors and how they apply to current market conditions. The present S&P 500 price to earnings (P/E) ratio is 26.52, as opposed to the historical median average which is 14.65. Perhaps more importantly the Schiller P/E is presently 29.27, when the median average is only 16.09. Ironically, 29 is the level the market hit on black Tuesday 1929, right before the great depression of the 1930s. Furthermore, the Schiller benchmark is now well above the 25 level the Shiller PE hit before the great recession in 2007. 
Possibly, most troubling is the S&P's price to sales ratio which is 2.08 a level not seen since the dotcom boom and subsequent bust of course. On average companies that make up the S&P 500 are being valued at more than 2 times sales. This is extremely ambitious and clearly indicates that share prices are appreciating much faster than companies are growing their revenues. The phenomenon we are observing now is somewhat reminiscent of the late 1990s. However, unlike in the late 90s when the U.S.'s GDP was growing at approximately 4.5% now the U.S. economy is barely averaging 2%, huge difference indeed. So, a logical question would be why are we seeing such a drastic appreciation in risk asset prices if the growth is simply not there to support it. - FX Street

Saturday, June 1, 2013

Hindenburg Omen Sighting: Market looks to party like it's 1929

While the famous Hindenburg dirigible crash took place in 1937, its financial namesake, the Hindenburg Omen, points to a time eight years earlier when the stock market crash ushered in the global depression.

This omen, which has foreseen stock market crashes on two separate occasions in the 21st century, made its appearance once again on May 31, and the Dow responded with a 207 point plunge over the course of three hours.



Hindenburg Omen:

The Hindenburg Omen is a combination of technical factors that attempt to measure the health of the NYSE, and by extension, the stock market as a whole. The goal of the indicator is to signal increased probability of a stock market crash.
The rationale is that under "normal conditions" a substantial number of stocks may set either new annual highs or new annual lows, but not both at the same time. As a healthy market possesses a degree of uniformity, whether up or down, the simultaneous presence of many new highs and lows may signal trouble. - Wikipedia

...there appear to be three reasons being discussed for this drop in stocks.

Third, and perhaps more important to some, based on intraday data so far, the much-discussed Hindenburg Omen has been spotted (as it also was before QE2 was announced to save the world). The last time we were this high in stocks and the Hindenburg was spotted was October 2007... - Zerohedge

As the markets reached new all-time highs on a 7 month rally, only to fall to their worst two week drop in 2013, the omen known as Hindenburg is an ominous sign that the party of 1929, 1987, and 2007 may be over, and over quickly if the forecast holds true to historical trends.