Just How Dangerously Overvalued Are Today's Financial Markets?

Recently we presented a parade of indicators published by Grant Williams and Lance Roberts that warned of an approaching market correction as well as a coming economic recession.

The key message was: When smart analysts independently find the same patterns in the data, it's time to take notice.

Many prudent investors did exactly this by participating in our recent Dangerous Markets webinar, which featured Grant and Lance.

In it, both went much deeper into the structural fragility of today's financial markets and the many reasons why economic growth will remain constrained for years to come.

The excessive build-up of debt in the system -- and the absolute dependence on its continued expansion to keep the economy from imploding -- is, of course, seen as the prime risk to future growth.

As Lance demonstrates here with several of his excellent charts, so much leverage has been taken on that its servicing is increasingly stealing capital that would otherwise go to savings, consumption and productive investment. Going forward, the demands of the debt service will simply result in less and less capital available left over to grow the economy:

As financial assets are (supposed to be) valued on future growth prospects, lower forecasted growth demands lower valuations. Grant calculates that, should the US see another decade of 2% average annual GDP growth (and it has averaged less than that over the past decade), stock prices should be roughly half of what they are today to be considered fairly valued:

And Lance builds further on this, explaining how this moribund growth, coupled with America's aging demographic trend, will simply savage the nation's (already troublesomely underfunded) pension and entitlement systems:

But there are a number of other destabilizing risks to fear beyond our terminal debt addiction. One that Grant believes is not getting enough attention right now is the de-dollarization trend becoming notably apparent across a number of America's strategic trading partners:

Understanding These 'Dangerous Markets'

It's little surprise that, given this multitude of concerns and systemic risks, both Grant and Lance advise investors to prioritize caution. They see extremely few undervalued -- or even fairly valued -- asset classes at today's prices, perceiving nearly everything else at dangerously elevated levels.

Under market conditions like this, moving your capital to safety may be the best move available. The risks of remaining long are obvious. But betting against the market has been a losing proposition for years -- no one knows how many months/years the central planners may be able to hold reality at bay.

Grant and Lance wrestle every day with market allocation decisions on behalf of their clients (and they discuss a number of potential options in the webinar). But both agree that, since the math is clear a major-to-massive correction will happen at some point, positioning today to deploy dry powder at much lower prices in the future is a low-risk/high-reward strategy.

The short video clips above are merely several minute's worth of the excellent discussion and insights from the full one hour-and-a-half long Dangerous Markets webinar. If you have savings, retirement funds, or other financial assets to protect, watching the full webinar will give you a in-depth understanding of the risks in play and of strategies to consider for wealth preservation.

To purchase access to the replay video of the event for $25, click either this link or the blue button below:

Remember, the time to prepare for crisis is before it arrives. Don't be caught unprepared.

'The Handmaid's Tale' got it right, just with the wrong religion

Alberto E. Rodriguez/Getty Images

Just in case The Handmaid's Tale's heavy-handed message wasn't already heavy-handed enough, a recent episode made it clear there's always room for further hysteria. Particularly, in relation to depictions of a “patriarchal society" run by Christian doctrine and determined by men — oh those dastardly men.

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The show appropriates Margaret Atwood of the same name, depicting a totalitarian society led by Christian doctrine in which women's bodies are controlled, and they have no rights. The story sounds familiar, but not in the same way Atwood and the show's creators have so smugly assumed.

Just as tone-deaf as 4th wave feminism itself, and tone-deaf in all the exact same places. Most notably, the show's heavy-handed indignation toward Christianity. Toward the patriarchy. Toward conservatives and traditional values. And just like 4th wave feminism, the show completely overlooks the irony at play. Because there is a part of the world where women and children are being raped and mutilated. In fact, in this very real place, the women or girls are often imprisoned, even executed, for being raped, and they are mutilated in unspeakable ways.

Theirs is a cruel, bloody, colorless life.

There is a place, a very real place, where women are forced to cover their entire bodies with giant tarp-like blankets, which is all the more brutal given the endless heat of this place. There is a place where women literally have one-third of the rights of men, a place where women are legally, socially and culturally worth less than men.

They cannot drive cars. They cannot be outside alone. They cannot divorce, they cannot even choose who they marry and often, they are forcibly married at a young age.

They are raped. A lot. Theirs is a cruel, bloody, colorless life. This is the life of tens, perhaps hundreds of millions of women. And, I'll tell you, their religion isn't Christianity.

Science did it again. It only took 270 million years, but this week, scientists finally solved the mystery that has kept the world up at night. We finally know where octopuses come from: outer space. That explains why they look like the aliens in just about every alien movie ever made.

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It turns out octopuses were aliens that evolved on another planet. Scientists haven't determined which one yet, but they've definitely narrowed it down to one of the planets in one of the galaxies. Hundreds of millions of years ago (give or take a hundred), these evolved octopus aliens arrived on Earth in the form of cryopreserved eggs. Now, this part is just speculation, but it's possible their alien planet was on the verge of destruction, so Mom and Dad Octopus self-sacrificially placed Junior in one of these cryopreserved eggs and blasted him off the planet to save their kind.

This alien-octopus research, co-authored by a group of 33 scientists, was published in the Progress in Biophysics and Molecular Biology journal. I'm sure you keep that on your nightstand like I do.

Anyway, these scientists say octopuses evolved very rapidly over 270 million years. Which sounds slow, but in evolutionary terms, 270 million years is like light speed. And the only explanation for their breakneck evolution is that they're aliens. The report says, “The genome of the Octopus shows a staggering level of complexity with 33,000 protein-coding genes — more than is present in Homo sapiens."

Lucky for us, they landed in the water. Otherwise, we might be octopus pets.

They mention that the octopus' large brain, sophisticated nervous system, camera-like eyes, flexible bodies and ability to change color and shape all point to its alien nature. Octopuses developed those capabilities rather suddenly in evolution, whereas we're still trying to figure out the TV remote.

These biological enhancements are so far ahead of regular evolution that the octopuses must have either time-traveled from the future, or “more realistically" according to scientists, crash-landed on earth in those cryopreserved egg thingies. The report says the eggs arrived here in “icy bolides." I had to look up what a “bolide" is, and turns out it's a fancy word for a meteor.

So, to recap: a long time ago, in a galaxy far, far away, an alien race of octopuses packed their sperm-bank samples in some meteors and shot them toward Earth. Lucky for us, they landed in the water. Otherwise, we might be octopus pets.

President Trump's approval rating is rising, and Democrats — hilariously — can't seem to figure out what's going on. A few months ago Democrats enjoyed a sixteen point lead over Republicans, but now — according to CNN's recent national survey — that lead is down to just THREE points. National data from Reuters shows it as being even worse.

The Democratic advantage moving towards the halfway mark into 2018 shows that Republicans are only ONE point behind. The president's public approval rating is rising, and Democrats are nervously looking at each other like… “umm guys, what are we doing wrong here?"

I'm going to give Chuck Schumer and Nancy Pelosi a little hint. We know that the Left has enjoyed a “special relationship" with the media, but they might want to have a sit down with their propaganda machine. The mainstream media is completely out of control, and Americans are sick of it. We're DONE with the media.

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Look what has been going on just this week. The president called MS-13 gang members animals, but that's not the story the media jumped on. They thought it was more clickable to say that Trump was calling all immigrants animals instead. In the Middle East, the media rushed to vilify Israel instead of Hamas. They chose to defend a terror organization rather than one of our oldest allies.

Think about that. The media is so anti-Trump that they've chosen a violent street gang AND A GLOBAL TERROR ORGANIZATION as their torch-bearing heroes. Come on, Democrats. Are you seriously baffled why the American people are turning their backs on you?

Still not enough evidence? Here's the New York Times just yesterday. Charles Blow wrote a piece called "A Blue Wave of Moral Restoration" where he tried to make the case that the president and Republicans were the enemy, but — fear not — Democrat morality was here to save the day.

Here are some of these cases Blow tries to make for why Trump is unfit to be President:

No person who treats women the way Trump does and brags on tape about sexually assaulting them should be president.

Ok, fine. You can make that argument if you want to, but why weren't you making this same argument for Bill Clinton? Never mind, I actually know the reason. Because you were too busy trying to bury the Juanita Broaddrick story.

Let's move on:

No person who has demonstrated himself to be a pathological liar should be president.

Do the words, “You can keep your doctor" mean anything to the New York Times or Charles Blow? I might have saved the best for last:

No person enveloped by a cloud of corruption should be president.

I can only think of three words for a response to this: Hillary Frigging Clinton.

Try displaying a little consistency.

If the media really wants Donald Trump gone and the Democrats to take over, they might want to try displaying a little consistency. But hey, maybe that's just too much to ask.

How about starting with not glorifying terrorist organizations and murderous street gangs. Could we at least begin there?

If not… good luck in the midterms.

In the weeks following President Trump's decision to recognize Jerusalem as Israel's capital, the mainstream media was quick to criticize the president's pro-Israel stance and make dire predictions of violent backlash in the Middle East. Fast forward to this week's opening of the US Embassy in Jerusalem and the simultaneous Palestinian “protests" in Gaza.

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Predictably, the mainstream media chastised Israel for what they called “state-sanctioned terrorism" when the IDF stepped in to protect their country from so-called peaceful Palestinian protesters. Hamas leaders later admitted that at least 50 of the 62 Palestinians killed in the clashes were Hamas terrorists.

“In our post-modern media age, there is no truth and nobody even seems to be looking for it …. This is shamefully clear in the media especially this week with their coverage of the conflict between the border of Israel and the Gaza strip," said Glenn on today's show. He added, “The main media narrative this week is about how the IDF is just killing innocent protesters, while Hamas officials have confirmed on TV that 50 of the 62 people killed were working for Hamas."

The mainstream media views the Palestinians as the oppressed people who just want to share the land and peacefully coexist with the people of Israel. “They can't seem to comprehend that in the Israeli-Palestinian conflict, only one side is actively trying to destroy the other," surmised Glenn.

Watch the video above to hear Glenn debunk the “peaceful Palestinian protest" fallacy.