Experts Are Warning That A U.S. Stock Market Crash Is Very Likely In The Months Ahead
Michael Snyder (Opinion) - Stock prices are not going to stay this high. Everyone can see that we are in a stock market bubble that does not have any parallel in all of U.S. history, and everyone can see that the end of that bubble is approaching. The only debate is about how fast and how far the eventual fall will be. For the first time ever, the ratio of U.S. stock prices to U.S. GDP has reached 200 percent. In other words, the total value of U.S. stocks is now twice as high as the value of all U.S. economic output for an entire year. To get an idea of how crazy this is, just check out this chart. Historically, the ratio of U.S. stock prices to U.S. GDP is normally under 100 percent, and so if all stock prices were cut in half U.S. stocks would still be overvalued. That is how extreme this bubble has become.
Other key valuation measures also indicate that stock prices have gotten wildly out of balance. The following example comes from a Motley Fool article entitled “Here’s Why You Should Expect a 20% Stock Market Crash in 2021”…
Looking back 150 years, the S&P 500 has averaged a Shiller P/E of 16.78. Admittedly, the Shiller P/E ratio has been a lot higher over the past 25 years. The advent of the internet has broken down information barriers for retail investors,.....READ MORE
Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of 5 books including his latest, Lost Prophecies Of The Future Of America” which is available on Amazon.com. He has four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. Michael allows others to republish his work on other websites because he feels people need hope more than ever before, and its his goal to share the gospel of Jesus Christ.