The markets are supposed to be a reflection of our state of the economy. If the markets are booming, then politicians point to this as a fact that everything is hunky dory and A-OK. Forget the fact that millions are without jobs and stagflation continues to eat away at the core of our financial systems.
Which is exactly where we stand at the moment. Stock markets continue to remain at artificially high levels and a change in leadership in the United States has renewed business confidence, despite the incredible uncertainty now erupting within and outside their borders.
Adding fuel to the fire is Bloombergs recent "Consumer Comfort Index", which has surged higher and now rests at its highest level since April 2015. In addition to this, and more importantly is their "State of the Economy" survey which has reached unexplainable heights.
Sitting at a nine year high, this survey rests at 42.8, the highest level since July 2007!
This number should be ringing the alarm bells in any contrarian investors head out there and is most certainly flashing a bright red light for myself.
As we know, the previous high marked one of the greatest collapses in the markets since the great depression and almost brought the entire system to its knees.
What I am fearful of now, is what I was fearful of back in 2007 and that is the fact that people are completely and utterly unaware of just how precarious these markets are.
A market collapse could be brought on at any moment, and as we are seeing, global uncertainty and geopolitical relations are now incredibly unstable. This is going to once again wipe out the savings of countless people, of which many may never recover.
Will the markets be able to survive another collapse like we seen in the 2008 crisis? Unlikely, as the system is more rotten than ever, and the problems experienced in the past have never been resolved, simply papered over with copious amounts of fiat money.
Prepare yourself, take action and ignore the MOPE. Don't be the one left holding the bag, be on your toes and ready to act, at the slightest whiff of trouble.
