Only Thing Missing Was A Voice From The Heavens

I’ve been in and around the financial arena for a third of a “century”.

Not me but not far away-lol

I gained some “worldly” fame for predicting some serious market declines and rallies (and was living a “legend in my own mind” lifestyle, until I lost millions not once, but twice!) But never in all the previous declines, did certain key people “telegraph” the dangers ahead as just occurred this week.

Here are actual quotes from three key members of the Federal Reserve:

  • Fed Chairwoman Janet Yellen told an audience in London that asset valuations are “somewhat rich.” That’s about as far as she can go because if she said they were too rich, look out below (have we already forgotten “irrational exuberance “ warning?)
  • Fed Vice Chairman Stanley Fischer went even further when he told an International Monetary Fund event that “price-to-earnings ratios now stand in the top quintiles of their historical distributions.” Translation – this is where previous markets topped out!
  • But San Francisco Fed President John Williams, gave the bluntest assessment, telling an Australian television station that the stock market is running on “fumes.”  

Hello? Trust me, when it all comes to an end and the masses of investors will ask why did they stay so long at the punch bowl (and/or why their financial adviser didn’t see what these powerful folks were implying this week?), they will look back at this week and truly grasp that other than a voice from Heaven, could they have been better warned about the coming stock market fall?