The markets are waiting on President Biden who will announce his nominee for the new Fed Chair in three days’ time (over the weekend).
Will current Fed Chair Jerome Powell land a second term… or will the President hand the reins to Lael Brainard or some other Beltway insider?
Or… more importantly… does it even matter?!?!
The Fed has created the largest bubble in financial history… a situation so out of control that:
- Crypto currencies that were created as jokes are worth tens of billions of dollars.
- People are selling NFTs of farts.
- Tesla (TSLA), a $1 trillion company, is trading like a penny stock.
- SPACs with NO ACTUAL BUSINESS OPERATIONS being valued at billions of dollars.
- Clean energy automobile companies with ZERO REVENUE are valued as being worth more than Volkswagen.
The bubble is massive even using normal metrics.
Warren Buffett’s favorite indicator (stock market capitalization vs. GDP) is at an all-time high, indicating this bubble is even larger than the Tech Bubble.
Options trading volume (a sign of speculation) also dwarfs that of the Tech Bubble. As Bill King noted, this is truly biblical in scope.
And then there’s the fact that the market is stretched a full 40% above its 50-month moving average (MMA). The only times in the last 35 years that it’s been stretched higher than this was right before the 1987 Crash and during the Tech Bubble’s final run to its peak before bursting.
So, whoever President Biden chooses as the next Fed Chair doesn’t really matter. Whoever it is, the bubble is still there, and is still going to burst, triggering the next major crisis.
So forget about the next Fed Chair. What you should be asking yourself is, “how can I avoid THIS?”
To figure this out, I rely on certain key signals that flash before every market crash.
I detail them, along with what they’re currently saying about the market today in a Special Investment Report How to Predict a Crash.
To pick up a free copy, swing by