While the stock market is at all-time highs, there’s an increasing amount of yellow to orange flashing warning signs out there. Financial experts are calling for a market crash.
Are You Ignoring These Warning Signs?- Video Transcription
Again, David Stockman, former budget director under the Reagan administration, two days ago on Fox business news, is asking consumers to start exiting the market. Meaning exiting or getting out of the equities market. The question now becomes, why would the former budget director under the Reagan administration come on National News television show and tell American people start exiting the market? This is a gentleman that has studied the markets for years upon years upon years and understands that the fundamental things that we've talked about over the last year and a half to two years are starting to happen. They're starting to get into a position where things are at risk. Forbes magazine, also two to three days ago, stated that the central banks, including the Federal Reserve of the United States, we're now going on the longest gold purchase spree that we've ever seen since 1950. we know for a fact that Germany and many other countries around the world have repatriated their gold, meaning that they're recalling their gold. And we know that China and Russia and emerging nations around the world have been stockpiling gold for many months now.
The other thing that we now have to take a look at- and each week, I try to give you something new to take a picture or a glimpse of- is that the corporate cash to debt ratio is now at the highest level we've ever seen since 2008. it exceeds what it was in 2008. what that means is that the major companies and corporations inside the United States do not have enough cash on hand or have enough revenue coming in to suffice the debt that they've had borrowed against. This is a major issue. This is the same reason why Lehman Brothers got in trouble and now we're starting to see the housing market start to stumble and step back a little bit. All of this information is good information, but it's only as good if you take the information and you do something about it. By no means are we saying, ‘Hey, go get all your money out of the bank' or ‘go pull all your money out of the equities market'.
You have to ensure that your money is diversified and it's set in areas that is in position accordingly. The market is at an all time high. We all know that and people continue to use the stock market as the barometer or the telling tell tale sign to get out and it most cases it's too late. We're 10 years older than we were in 2008. We don't have another 10 years to be able for it to recover and get us where we are today. Get that money in a position where you can protect it and then re enter when you need to and start looking at the fundamental things that we've talked about over the course of the last six months to a year and a half now. As always, thank you for watching U.S. Money Reserve's Market Insights. If you call the number on your screen now, a U.S. Money Reserve representative will provide you with access to a physical copy of ‘why this bear market will be different and seven reasons why not to ride it out'. For instant access for this month's literature, you can use the link in the description below and get your own copy of your own e-book. As always, thank you for watching U.S. Money Reserve's Market Insights.