Today, I’m doing something a bit unusual.
Instead of our usual LAMPP update, I’d like to take a different tack…and show you a historical picture lesson that should scare the stuffing out of you.
Recently I’ve been thinking about the similarities between the current stock market environment and a few of the bubbles that I have experienced in a lifetime of following markets. While those similarities are scary, they prove nothing. Just because 2 different periods in different markets look alike doesn’t mean that their denouements will be the same.
By the same token, to ignore the similarities and the warnings they represent would be foolhardy. So today I am showing you the pictures of several modern bubbles, starting with a recent and disturbing one in gold.
Maybe that’s not enough to scare the bejabbers out of us, nor perhaps should it be, because there may still be time to watch and take action deliberately. If you have been following my recommendation to gradually liquidate your stock holdings and raise cash over the past four months, and the current 3 months if you started late, then you’re in good shape to ride out the storm that I expect.
But the message in these charts is that maybe there isn’t as much time as we think.