The stock market is now seeing parallels of the year 2000 internet bust.
July 30 (King World News) – Gerald Celente: U.S. equity markets have climbed from record high to record high this year, with the Standard & Poor’s 500 index setting nine new records this month and the NASDAQ 13.
The meme stock rage has returned with a frenzy. The interest-rate premium above government bond rates that corporations pay to borrow is “nearing the lowest level in decades,” the Financial Times reported. Bitcoin broke upward through $120,000 earlier this month.
Markets have become “euphoric,” economists told the FT, and may be entering a bubble.
“You’re beginning to see some very early parallels to what you saw with the Internet boom in the late ’90s, early 2000s,” Dan Ivascyn, chief investment officer at PIMCO, a $2.1-trillion private equity firm, told the FT. “There’s this lottery-ticket mentality. It’s a dangerous set-up.”
S&P stocks are now pricing at 33 times their annual sales, a height never seen before, Bloomberg data shows.
Barclays’ “equities euphoria” Indicator — a combination of derivative action, volatility, and sentiment — has doubled its normal level and entered into bubble territory, “clearly showing that the market is euphoric,” strategist Stefano Pascale said to the FT.
Also, markets are relieved by the initial trade agreements between the U.S. and key partners. “The deals are bad but investors are happy with anything but a full trade war,” Luca Laolini, Pictet Asset Management’s chief strategist, wrote in a note.
TREND FORECAST:
The equity markets will keep riding high now that President Trump has ended most of his trade wars. However, with the current PE ratio at 25.91, stocks are considered very expensive. When the PE ratio is below 20 stocks are considered a good investment.
Wild Card For 2025, Gold And More
To listen Gerald Celente discuss the Wild Card for 2025, what to expect for gold, and much more CLICK HERE OR ON THE IMAGE BELOW.
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To listen to Alasdair Macleod discuss the coming $1,000 surge in the gold market as well as what to expect from silver and the mining stocks CLICK HERE OR ON THE IMAGE BELOW.
