THE U.S. STOCK MARKET: Highly Inflated Bubble To Super-Charged Tulip Mania

by Steve St. Angelo, SRSrocco:

Investors need to be concerned that the U.S. Stock Market is well beyond bubble territory as it has now entered into the final stage of a Super-Charged Tulip Mania.  Not only are stock prices inflated well above anything we have ever seen before, but valuations are also reaching heights that are totally unsustainable.  Unfortunately, these highly inflated share prices and insane valuations seem normal to investors who are suffering from brain damage as years of mainstream propaganda have turned the soft tissue in their skulls to mush.

Also, we are way beyond “Boiling Frogs” now.  Yes, we passed that stage a while back.  Today, the typical U.S. investor has been fried to death.   Investors now resemble a super-crisp chicken-wing with very little meat on it but at least will offer, one hell of a crunch.  Please realize I don’t mean to be harsh about my fellow investor.  However, when I look around and see what 99% of the market is doing, it reminds me of a famous line from the movie Aliens.  The star of the movie, after being found lost in deep space for many years, said the following in a meeting, “Did IQ’s drop sharply while I was away?”

We find out in the rest of the movie that the so-called Mainstream experts were totally wrong about their assessment of the situation.  However, billions of dollars were still spent and many lives lost because Brain-Damaged high-level individuals (in the Aliens Movie) even controlled the shots.  No different than today… LOL.

Regardless, the U.S. Stock Market has entered into the last stage, which I call the Super-Charged Nose-Bleed Tulip Mania.  In this stage, it wouldn’t matter if the North Koreans launched a nuclear missile and declared war on the rest of the world, the universe and all Aliens floating around in space.  By God, the Dow Jones Index would look at this as a motivation to reach the next important psychological level of 25,000 points.  Reaching that new level wouldn’t really be that hard as the Fed would just have to hire a few dozen more trading geeks and provide an endless supply of Hot Pockets and Starbucks.  Easy-peasy.

Okay… it’s time to get serious.  Here are a group of charts that show just how insane the markets and valuations have become today.

JP MORGAN & CATERPILLAR:  Exponential Share Price Increase & Insane Valuation

Let’s take a look at two of the companies listed in the Dow Jones Index.  JP Morgan Chase has benefited immensely from the U.S. Government bailout of the garbage assets such as Mortgaged Back Securities after the housing and banking collapse in 2008.  JP Morgan has seen its share price surge four times from $25 in 2012 to over $100 currently:

JP-Morgan-34-Yr-Chart.png

Furthermore, if an investor was lucky enough to buy a bunch of JP Morgan stock back in 1983 at $2.50 a share, he or she wouldn’t be complaining a bit today.  JP Morgan’s stock price is up a stunning 3,933% over the past 34 years.  If we look this chart, we can see that the share price moving is now moving up in an exponential trend.  All exponential trends never last.  While they may continue higher a bit longer, all will collapse sooner or later.

Read More @ SRSrocco.com