As we noted yesterday, stocks are bubbling up.
The meme stock craze of 2021 is back with unprofitable, financially unstable companies soaring in value. First it was Opendoor Technologies (OPEN). But now Krispy Kreme (DNUT), Kohl’s (KSS) and GoPro (GPRO) are joining in. These stocks are all up near triple digits this week on massive short-squeezes.
Moreover, the overall indices are getting VERY richly valued. The S&P 500 has a P/E of 30, which is nearly TWO TIMES the average P/E of 16. The only time the index has sported a higher P/E was during the Tech Bubble, the bottom of the Great Financial Crisis (because profits evaporated) and during the Pandemic Bubble (ditto).
Meme mania back with excessive speculation? Check.
Stock market extremely overvalued? Check.
Yep, this is a bubble.
With this in mind, investors should ride the current bull market in stocks while keeping one eye on the exits. We are urging our clients to do precisely this with a tool we’ve developed that has accurately predicted every major market collapse in the last 40 years.
We detail it, how it works and what it’s saying about the markets today in How to Predict a Crash. Normally we’d sell this report for $499, but in light of what’s happening in markets today, we’re making just 99 copies available to the investing public.
To pick one up…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
