Market Update: Flying Too Close to the Sun?




from Peak Prosperity

SCHEDULE YOUR FREE PORTFOLIO REVIEW with Mike, John and the New Harbor Financial team here: https://www.greylockpeak.com/

The disconnect between the accelerating economic damage caused by covid-19 and the reckless exuberance seen in the financial markets is crazy-making at this point.

Prices have been steadily marching upwards in defiance of the ugly data. And in Big Tech, companies are now more overvalued than they were before the pandemic hit.

How, pray tell, can you even pretend to justify these companies trading near the same prices as they did three months ago — after 30 million Americans have been laid off, GDP is contracting the largest rate in history, and household and corporate budgets are being slashed?

The short answer is: you simply can’t.

This is a classic asset-price bubble, being made worse by the recent $trillions being supplied by Congress and the Federal Reserve. Dumping liquidity into the system cannot make up for the tremendous demand destruction that has occurred. It’s not going to help the tens of millions laid off suddenly rush out to buy Teslas, or the millions of soon-to-be-bankrupt companies double their Facebook ad budgets.

The simple truth is these companies are flying too close to the sun. And that always ends with crispened wings and a plummet back to earth.

As we’ve been doing throughout the recent market volatility, we’ve once again asked the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, for their latest perspective.

In this week’s video update, we discuss the extreme distortion in today’s markets and how it presents an excellent opportunity for those who haven’t yet to rebalance their portfolios — though the window to do so may be short-lived. In fact, it may be closing right now as we watch today’s sudden market weakness build.

Anyone interested in scheduling a free consultation and portfolio review with Mike and John can do so by clicking here:

https://www.greylockpeak.com/

And if you’re one of the many readers brand new to Peak Prosperity over the past few weeks, we strongly urge you get your financial situation in order in parallel with your physical coronavirus preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.