CNBC: Greenspan Warns of ‘Irrational Exuberance’ Once Again
Former Fed Chairman Alan Greenspan has sounded the alarm bells once again on national news.
According to the longtime central bank chief, “current interest rates are abnormally low and there is only one way they can go” now. Up. And potentially bring the bond market down very fast.
The resulting crash could quickly extend over to pulverize other markets like the S&P 500.
Greenspan says this could be the end of a bull market in bonds that has lasted more than 30 years. It could be a crippling blow to stocks for a long while too.
Quoted on CNBC, the famed market experts said “it is perfectly fair to say there is ‘irrational exuberance’ right now in the bond market.” His historical perspective put the current level of risk in a long context. “I have a chart which goes back to 1800 and this particular period sticks out,” he warns.
With all the current financial news covering the markets like a football game, cheering as stocks hit record highs, it is important to remember a first principle of investing:
Harvest and diversify!
If you’ve done well in the last six months in stocks, physical precious metals could be a powerful diversifier and recognized safe haven asset for your family’s future.
When Greenspan helmed the Fed from 1987 – 2006, the benchmark rate was near zero and this easy money lasted all during the financial crisis. Here we are, 30 years later, with rates still at remarkable lows and money as easy as ever.
Greenspan predicts the low interest rate environment cannot last forever and it will have severe consequences when it ends.
Will you be ready?
GOLD COUNCIL: DEMAND TRENDS ARE HEALTHIER
Demand for physical gold is looking robust. World Gold Council head of market intelligence Alistair Hewitt says U.S. jewelry demand is up. He also sees excellent growth in demand in India. Retail investment and technology demand trends for gold are up too.
Legendary investor Jim Rogers has been a constant commentator about the potential for gold prices ahead. He echoes Greenspan’s concerns and warns of a coming stock market crash that is only a matter of time. He believes the global financial system is highly unstable, over-leveraged and non-transparent, pushing current risk levels sky-high. Rogers believes gold prices could move higher fast in the coming years.
Goldman analysts recently named three factors that could propel gold much higher, much faster:
Lower returns from U.S. stocks
Emerging markets increasing purchasing power and consuming more gold
Gold mine supply peaking this year
LONDON: A STAGGERING FORTUNE IN GOLD IN VAULTS
A well-kept secret has finally been revealed.
The London Bullion Market Association disclosed last week, for the first time ever, exactly how much gold in hoarded away in the vaults in London. The answer: an estimated 596,000 gold bars!
These gold bars weigh a massive 7,449 tons and are worth an estimated $300 billion. This hoard isn’t just about gold, either. Physical silver stored in London accounts for an additional $19 billion.
This puts the power of the city in perspective: it as a financial center literally built upon a bedrock of gold. In fact, the U.S. government is the only entity known to have more physical precious metals stored in its vaults.
DIVERSIFY YOUR RETIREMENT VAULT WITH GOLD
When the former head of the Fed says the markets are destined to crash, investors should take heed while they still can.
When the world’s top billionaires recommend investing at least 10% of your portfolio in gold, now is the time to take action and diversify your paper-based wealth from the coming corrections.
By owning physical gold and silver, you can help hedge your future with tangible assets that are not correlated closely with traditional markets. Gold is highly liquid, transferable and recognized everywhere throughout the world.