Stocks Set Up for Worst Disaster?

Warren Buffet is a super rich Democrat.  His name is one of the most well known in the stock market for the past 30 years.  He has made a fortune picking great companies.

With that being said....many would argue that he is also a globalist and is doing everything in his power to bring the world into a place where one government can oversee all the affairs of mankind.  This would be so we could tackle things like war, global warming, wealth distribution, hunger, ignorance, etc...  And of course he was a huge supporter of globalist-Pres. Obama.

When Warren speaks, the investment markets listen.  So check this out today from Wealth Adviser Magazine.

Buffett's argument could be setting stocks up for worst disaster

Billionaire investor Warren Buffett made a lot of people feel better about historically stretched stock prices earlier this month. 

Speaking in an interview with CNBC a few weeks ago, the chair man of Berkshire Hathaway said, "Valuations make sense with interest rates where they are." 

The investment community breathed a sigh of relief. After all, Buffett is arguably the most successful stock investor in world history. An all-clear from him surely gives a green light for adding more equity exposure, right? 

Wrong, says John Hussman, the president of the Hussman Investment Trust and a former economics professor. 

In his mind, Buffett only gets half of the equation right. While Hussman acknowledges that low lending rates do, by nature, improve future cash flows, he argues that they must also be accompanied by strong growth -something that he notes the US is not currently enjoying. 

To Hussman, the simple idea that "lower interest rates justify higher valuations" is one that gives people false confidence. "It's an incomplete sentence," Hussman wrote in a recent blog post. 

"Unfortunately, the convenience of investing-by-slogan, rather than carefully thinking about finance and examining evidence, is currently leading investors into what is likely to be one of the worst disasters in the history of the US stock market."

Hussman calculates that stock valuations are stretched 175 percent above their historic norms and predicts the S&P 500 will see negative total returns over the next 10 to 12 years.

Here;  https://www.thewealthadvisor.com/article/buffetts-argument-could-be-setting-stocks-worst-disaster?mkt_tok=eyJpIjoiTldVMlpXSTBOV00zWVdGaiIsInQiOiI3MjAzelVLbXhqaVpYR3ZkRlpMUlN5QjByeU1RNkFYUW9LYVpOZ1wvWDYwRjIwa2VNQUdYaGRMTVo0NlFZTmdvQ21sczR1amtqa0EzNVZIWjFhQjNxNDQ3V1h6OERJWnZ6OGRYNmdRVUhMcUpTUzRMQ1A5ZmcweTNJRDRNMXhwTVkifQ%3D%3D

Holy bubble!!  Valuations 175% above the historic norms???  That would be quite a collapse if stocks went back to historical valuations!!

Do you think that could cause America some serious problems if we see the stock market have negative returns over the next decade?

Confidence would collapse, our $20 trillion debt payments would be hard to make, retail stores at the malls around the country could implode, the car industry held together by people financing cars they can't afford with banks making NINJA loans (No income? No job? No problem!) could also come crashing down.  And what about the unrest that already happening in cities with Black Lives Matter and Antifa rioting and looting?  Do you think a decade of negative stock returns could put that whole situation in a pressure cooker?

"But Dennis, that could never happen in America!  Our stock market always goes up!  We always have unlimited amounts of money that we can borrow for anything we want!  We will always be blessed by the gods with unlimited resources, wealth and unity...because this is America!"

Please remember that America is nowhere to be found in Bible prophecy.  When Israel cries for help in the very last days America is either unwilling or incapable of responding.

We believe that America's new false god of Mammon will collapse like a house of cards one day...and all the rich folks who spent more time gathering for Mammon than they did gathering for Christ...will be eternally sorry for their choice.

Matthew 6:24
“No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money.