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Real Investment Advice/Lance Roberts
“The ‘secular bull market’ of the 1920s is probably the best example of the cycle we are likely ending, not beginning. In 1920, banks were lending money to individuals to invest in the securities they were bringing to market. Interest rates were falling, economic growth was rising, and valuations grew faster than underlying earnings and profits. There was no perceived danger in the markets and little concern of financial risk as ‘stocks had reached a permanently high plateau.”’ It all ended rather abruptly.”
USAGOLD note: And conclusively, we might add, in a matter of a few months. Lance Roberts shoots Ed Yardeni’s bullish views full of holes: “While the idea of a ‘roaring 20s market’ is undoubtedly optimistic, it is also a dangerous concept for investors to ‘buy’ into.”
Repost from 12-9-2020
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