Read This Before Investing Another Cent

July 18, 2016

While CNBC and other perma-bulls claim that the stock market is a great investment today, the smart money is already prepping for a disaster.

Goldman Sachs has told its clients to “sell at the new high.”

Credit Suisse just told its clients stocks “haven’t looked this worrisome since the tech bubble.”

They’re correct. Stocks are in a bubble by virtually every reasonable metric.

According to CAPE, stocks have only been more expensive relative to earnings TWICE in history. Both of those situations were also massive bubbles.

The media Price to Sales (P/S) ratio for the S&P500 is at an all-time high. Stocks have NEVER been more expensive based on this metric.

h/t Ned Davis

And finally, stocks as priced in Enterprise Value to Earnings Before Interest Taxes Depreciation and Amortization (EV/EBITDA) are at levels not seen since 2000.

H/T the Euchre

A Crash is coming...and the time to prepare is NOW, before it hits.

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Graham Summers is Chief Market Strategist for Phoenix Capital Research, an independent investment research firm based in the Washington DC-metro area with clients in 56 countries around the world.

Graham’s clients include over 20,000 retail investors as well as strategists at some of the largest financial institutions in the world (Morgan Stanley, Merrill Lynch, Royal Bank of Scotland, UBS, and Raymond James to name a few). His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Glenn Beck Show and more.

The world’s gold supply increases by 2,600 tons per year versus the U.S. steel production of 11,000 tons per hour.

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