Signaling Collapse is THIS CLOSE (Uncut) 01-28-2025

MARKET WARNING Issued as Valuations Explode Signaling Collapse is THIS CLOSE

The stock market right now is doing something we’ve only seen twice in the last 70 years. Market valuations have exploded and the S&P 500 is trading far above historical norms. But if history is any guide here, the fallout from the upcoming collapse is going to be catastrophic.

So what’s driving this overvaluation? How long do we have before the collapse happens and what can you do to prepare now? It’s no secret that the market has been on a tear with the S&P 500 gaining 25% this last year, marking back to back years of over 20% returns. But the last time we saw this for context was in the 1990s, right before everything came crashing down. But if you look at headlines today, everyone is thrilled, analysts are cheering.

But if you look a little bit deeper and use common sense, the warning signs are everywhere. One of the most popular tools for measuring stock market valuations is the CAPE, C-A-P-E, CAPE ratio, popularized by Robert Shiller during the dot-com bubble. And we are going to take a look at this together in just a second.

The reason it’s so popular is it doesn’t just look at last year’s profits, like most P-E ratios do, it looks at an average of the last 10 years, giving a more balanced picture of anything. You could say that what we’re about to look at is even on the conservative side, which makes what we’re seeing that much more alarming. In a lot of ways, it’s just a fancy way of understanding are stocks expensive or cheap? Which is important to know, right? Because right now we have a ton of people piling their life savings into the market because someone at the grocery store told them to.

And they have FOMO. But that is not a smart way to do business. I think we all can agree on that.

Let’s look at this chart together so we can see exactly what’s happening today and therefore what we anticipate to happen tomorrow in the stock market. Now, again, what we are seeing here is whether stocks are expensive or cheap as a whole. Anytime this ratio is higher when we see these peaks, that means that stocks are more expensive, meaning that the companies that you’re investing in, their profits are less, right? Which common sense tells us that’s not where you wanna be.

You wanna be spending less when you invest for a company that’s more profitable, not the other way around, because these peaks are historically unsustainable. Now, today where we are is 38.37. For context, 96% of the history of this chart has never been that high. If we look at the most recent two peaks that even came close, there was one right here, right, following COVID.

So we had that kind of peak and then it corrected 25%. So there’s a drop off and that’s exactly where we are today, level, level. And then the big one going back here was the dot-com bubble.

And we know how that one burst. That one was higher, that one was in the 40s. That one dropped by 50%, 50%.

I mean, if there was a market collapse right now today, or if we lost 50% of the stock market’s value, we are talking about retirements, savings. These are serious numbers that are going to wipe people out. But what’s driving this massive overvaluation? Because it’s not real growth.

It’s not economic stability, that’s for sure. No, I mean, we know that a lot of this is just debt-fueled speculation, that as the government has continued to pump cash into the system, that it’s ending up here. But what we’re also seeing is human behavior changing.

People are willing to pay more per dollar of profit than ever before. Again, they are willing to buy things that are in layman’s terms, expensive, right? Expensive, and that is not sustainable. That can’t go on forever because eventually someone’s gonna realize, oh, this is expensive.

This doesn’t make sense for the quality of what I’m buying because the underlying real tangible growth is not there. And that’s when that drop is going to happen, that collapse is going to happen. But right now they’re in a false sense of security.

They’ve been lulled into one because there’s so much speculation going on that they feel like they’re not alone. Everyone is doing this, everyone. And this mentality is evident with another problem we’re seeing, one that no one is really talking about.

There used to be a lot of chatter about this, but not today as these numbers continue to soar. I am talking about margin debt. Now, margin debt is when investors borrow funds to buy stocks, and right now it’s acting like rocket fuel.

But if things were to go south, it’s a ticking time bomb. But here’s why, when stock prices fall, it forces investors to sell, driving prices even lower and creates a vicious cycle. And where are we today? If we look right here, and this actually is November, is the most recent data that we have on here, but you can see a serious jump from October to November.

Let me just go ahead and zoom in on that so you can really see that. Boom, jumping up here. And again, over here, that what we’re looking at, I know it’s zoomed in so you can’t see the dates, but what we’re looking at right there is, again, that 2001, right before everything kind of dropped off.

We are climbing, and my guess is, if we were to look at current data, we’re even higher than then. We probably are at the largest levels we’ve ever seen. That means that people are willing to be riskier with their funds.

They are betting it all on this market. And again, that just means the fallout is going to be that much worse because nothing that’s going in is built on real, tangible growth. It’s all speculation.

This market right now is like a credit card addict living beyond their means. Right now, it’s all fun and games. It’s a party, it’s trips, it’s fancy dinners, new clothes.

But when you run out of funds and that card is declined, what happens next? It all goes away. We know that the higher you climb, the harder you fall. And right now, this everything bubble that we are living in is on borrowed time.

I don’t know how many other ways I can prove that this market is overvalued, but that is exactly what it is. And let’s not forget what happened the last time that we saw something like this, the dot-com bubble. And today is worse compared to the dot-com bubble.

And what happened then? Everything was slashed by 50%, 50%. And if today it’s worse, how much worse is that crash going to be? What if it was 75%? What if you lost 75% of everything? What my advice to anyone out there who’s like, I’m not a financial planner, so take it with a grain of salt. But ultimately, when I look at this, all I see are warning signs screaming at me.

And I just want to make sure that everyone does not have all of their eggs in one basket. Because when this happens, it’s not just the stock market that I’m concerned about, right? This everything bubble is so intertwined. All of the pieces come together.

They’re all meshed and they all impact one another. So if this were to happen, what’s going to happen to banks? What’s going to happen to real estate? What’s going to happen to everything, right? We could see a serious crash across the board. This is something that people have been talking about coming for a long time.

And it feels like we are speeding up and getting closer and closer. So it’s not a question of if, it is a question of when. And my advice, again, to anyone who’s watching is to make sure you’re prepared before it happens.

Outside of the system, if you look at all of the assets that are vulnerable, then you want to ask yourself, okay, what can I do to minimize that vulnerability? Do I have my insurance policy in place? Now, for me, that insurance policy absolutely involves precious metals, physical gold and silver that I hold, I own that’s not in the system, that they can’t touch, that they can’t manipulate my personal insurance policy. Now, if you don’t have a plan in place yet, or you want to get a strategy so that you are ready for what is coming next, because we all can see it, we all can see the writing on the wall, then you should talk to a member of our team. You can call us at the number below or click the County link in the description.

And if you want to just learn more about gold and silver, right? If you’re new to all of this, we have an incredible gold and silver guide that you can also download by clicking the link in the description. You can scan the QR code on the screen and get your instant free download today. It’s just a resource that we want to provide so that you can learn a little bit more on how to protect yourself.

Because I know there’s a lot of information to absorb here. It’s a lot to take in, and not all gold and silver is the same. So it’s important to make sure that you understand what you are preparing for, what your goals are, and therefore make sure that you have the best strategy in place for you.

And as always, let me know if you have any questions, leave them in the comments below. I love to read all of them. I’m Taylor Kenney with ITM Trading, your trusted source for gold, silver, and lifelong wealth protection.

Until next time.