Investor Gordon Long says the stock market hitting one all-time high after another, despite all the economic headwinds, shows the public is in a “delusional phase.”
The latest nuclear war threat from North Korea shows the extreme delusion going on, and Long contends, “This is about as clear of an example as you are going to get. This is more serious than the Cuban Missile Crisis, and the fact the market has not even blinked during this tells you we no longer know how to price risk. It’s not being priced correctly...
It’s almost pure speculation at this point, and maybe straight out gambling.” When is it all going to come crashing down? Long predicts, “I think there is a scare coming this fall. That scare will allow central banks to start more quantitative easing and other programs.
They will be guaranteeing the markets and guaranteeing assets because they can’t have this pension system collapse, and it’s all in the stock market. I think we are talking about the spring of next year.” (When it all totally implodes.)
- Source, USA Watchdog
