Today’s bull market is not going to slowly die of old age. Rather, it is destined to end with a massive coronary. As bull markets conclude, many investors who have grown accustomed to regular growth frequently throw caution to the wind and jump into more speculative stocks. This buying spurt is commonly referred to as an M Wave. The last M Wave was seen in 2008 and hopefully we all remember what happened then. Over the past 85 years, the average bull market has lasted for almost four years. Our current bull market is already the 2nd longest in that span of market history, at more than seven and a half years.
The current M Wave spree, Fed interest rate threats and corporate buybacks of company stock with today’s cheap money have combined to bring this bull market to a head. It’s difficult to say what economic event will trigger the collapse, but the heart is old, damaged and Fed life support is failing. Regardless of its utter vacillation, by maintaining the high range, the stock market is giving investors a reason for hope. But the reality remains; the market has run its course, investor enthusiasm is waning, market momentum has peaked, corporate profits have peaked and for all the wrong reasons, stock valuations are very high.
The dollar has been gaining strength over the past few months, which seems to be a good thing, but the reality is that it’s gaining strength against other world currencies, all of which are in varying degrees of ruin. Investors from other countries are treating the dollar as safe haven, but that too is far from reality. During the past seven years, the yield on 5 and 10-year U.S. Treasury Inflation Protected Securities has dropped to zero or less than zero as investors, especially foreign, scurry from the pitfalls of their own currency. Unfortunately, it’s like being the smartest kid in a class full of idiots. It doesn’t make you smart or safe.
Why try to reinvent the wheel? Precious metals have been a universally accepted world currency for millennia. Every investor should realize the value precious metals as a financial anchor, an instrument that keeps you in place while an economic maelstrom churns and destroys everything around you. The selection of a new President will have no effect on the coming collapse. Take the necessary steps to prepare and be sure to include physical precious metals in your plan, to protect your assets, your family and your legacy.