The divergence between the stock market and the real economy has never been more obvious.
This week, the S&P 500 hit another all-time high, while the Michigan Consumer Sentiment Index fell another 1.7 points to a new all-time low. The last times we saw year-on-year declines in sentiment this severe were 2020, 2008, and 2000.
In other words, Wall Street is celebrating while the real economy is flashing red. Something doesn’t quite add up, does it?
Wall Street banks are posting record profits, trading desks are collecting record payouts, and Donald Trump’s wealth has reportedly risen by $4.5 billion in two years. Meanwhile, the everyday American is left counting the cost.
This is the K-shaped economy in plain sight: one class levitating on asset prices, speculation, and financial fraud, while everyone else absorbs the pain through high inflation, debt, and a rising cost of living.
Gas prices are high, but they’re only the first blow. The early warning sign of the coming Great Depression 2.0, which is still working its way through the system.
So in tonight’s episode, I’m going behind the curtain to ask a very simple question: how real are these new all-time highs?
Are they being driven by genuine fundamentals, real growth, and a healthy economy? Or are we watching the final stage of a debt-fuelled Ponzi scheme, where asset prices are being pushed higher while the real economy underneath is already cracking?
To answer that, I’ll be looking at several indicators that have helped signal previous recessions and market crashes, alongside some striking anecdotal evidence from Google Trends that suggests something substantial is approaching — and fast.
So consider this me ringing the bell.
This year is the year I believe we see a major market crash. The warning signs are everywhere, the historical parallels are lining up, and before long, we will see the reality underpinning the new ‘market highs’.
Have a great weekend,
Mike
CONSULTATION WITH MIKE
For more than four years I’ve been guiding clients towards positioning themselves and their families to protect their wealth during the high-risk environment we are now in.
From managing the Great Taking and asset confiscation, to protecting pensions and 401(k)’s — this is where I specialize. I also support people with creating a Plan B, analyzing risk, and preparing to become more self-sufficient.
As such, if you would like personal, one-to-one support to secure your wealth, now is a great time to book. The consultation can be booked via the link below.
