Loading ...@Robert There are only three times when I have regularly woken in the middle of the night, worried about share prices: two of these were 1987 and 2008. On both occasions I sold out before the impending crash. It was an easy decision – PE ratios indicated grossly overpriced shares.
The third time I lost sleep over shares was a year ago because I foresee a collapse like you do, Robert. And yes, people stopped listening to me because it still hasn’t happened. Prices keep going up because of speculation, not fundamentals. When I look at corporate earnings, I cannot see where any growth is going to come from.That’s not a good sign.
Economic growth traditionally came from population increases and productivity. Both are now at snail’s pace. Now, growth is fuelled by debt. And debt on debt. Households, businesses and governments have been loading more and more debt to bring forward future demand and it’s unsustainable.
When this house of cards falls over the effect will be cataclysmic, making the GFC look like a picnic. It will devastate businesses, jobs and households. Retirees, and anybody near to retirement will be hurt hard. Then unemployment will hit. And like most financial crashes in history, most people will be surprised that it could happen. I have no idea what will trigger the next one, but it will most assuredly happen, and happen soon.
So hold firm on your prediction, Robert. I know that few people wish to listen to the hard logic of what we see, and they’re even more unlikely to take the necessary steps to protect themselves from what will happen. It will be a very different world that people will need to adjust to down the track.