Sunday, November 28, 2021

Seven Charts and the Coming Crash

November 28, 2021

Stocks Command

From time to time, we come across offers that you may find interesting:

Dear Reader,

The market is at an epic top.

The S&P 500 is at an all-time high…

S&P 500

More "unicorns" — billion-dollar startups — are being created than ever before…

There Are More Unicorns Being Created Than Ever Before

And, of course, as we know, more money is being pumped into our economy than ever before…

M1 Money Stock

But just how overvalued is this current market?

Below are a few charts that help illustrate this. I won't go into detail explaining how these metrics work. (You can Google that if interested). What's more important is comparing today to the past.

First up is an average of four different valuation indicators.

All-time high. Worse than even 1929…

Average of Four Valuation Indicators

Next is legendary investor Peter Lynch's "Rule of 20" valuation.

Another top…

Peter Lynch's "Rule of 20" Valuation

Next comes data from Goldman Sachs.

U.S. equity issuance as a percentage of U.S. GDP.

According to GMO, run by legendary investor Jeremy Grantham, this is supposed to be a good predictor of future busts.

Again, record highs…

Goldman Sachs: U.S. Equity Percentage

And, finally the master of all masters. Warren Buffett.

His indicator has never been higher…

Buffet Indicator: Value vs. Historical Trend

One has to wonder:

Could all these investing legends be wrong?

It seems unlikely.

However, what is uncertain is how the next correction will take place.

That's where tech visionary Jeff Brown comes in.

Jeff's firm called the exact top of the dot-com bubble. And Jeff predicted the "corona" crash 45 days in advance.

But this next correction won't be the same as all the others, argues Jeff.

There will be something very unique about the next big market shift. And you can see Jeff's full analysis and prediction right here for free.

5 stocks he believes could actually zoom ahead

Sincerely,

Van Bryan

Van Bryan
Editorial Director, Brownstone Research

P.S. It's not all doom and gloom. (Thankfully!) Jeff has also singled out 5 stocks he believes could actually zoom ahead in the coming months. See for yourself by clicking the image

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