Do You Hear the Bells Ringing?
The comments below are an edited and abridged synopsis of an article by MN Gordon
There’s an old Wall Street adage, “No one rings a bell at the top (or bottom) of the market.” The bell, of course, is the signal to sell at the market top.
It seems that bells do ring at market tops, yet few hear them. Most people seem more concerned with the prospect of easy riches.
At this market top, few people are paying attention. These bells won’t be heard until after the market craters. In retrospect, it becomes obvious that, at the market top, bells had been ringing practically every day.
Many of today’s investors have never heard of Kreuger, the Swedish Match King, but knowing his story could help protect their lifesavings in the months ahead (Gordon tells it here).
Gordon is suspicious, and he asks the following questions:
Why is Tesla trading at over 200 times earnings? Why is total issuance of collateralized loan obligations projected to grow to $850 billion outstanding by the end of 2021? Why was JPMorgan’s Jamie Dimon paid $31.5 million in 2020? Why is the CAPE Ratio for the S&P 500 at 37.84, more than double its long-term mean of 16.82? Why did the Fed’s reverse repurchase operation hit a record $813.573 billion last Wednesday, up from $791.6 billion the day before? Why is the yield on the 10-year Treasury note just 1.5% when consumer price inflation is officially rising at a 5% annualized rate? Why did the NASDAQ and S&P 500 indexes just hit new record highs? Why is the US national debt now over $28.4 trillion? And why do statists despise gold?
Countless bells are ringing. Do you hear them?