Here is something that should greatly concern you in the financial news that the perma-bulls of the financial media channels have somehow neglected to report amidst their cheer leading the stock markets ever higher and higher. It has not been two weeks since the so-called fear gauge, also known by its official moniker the VIX Volatility Index, closed at an all time low of 9.19.
This might not at first sound like a big deal, but wait, there’s more. The VIX has not simply made an all time low these past few weeks, but it has only closed at less than 10 fully nine separate times between the years 1990 through 2016. This works about to approximately once each three years. The CBOE Volatility Index chart below depicts this for you:
Yet this year, the revered fear gauge has managed to close for the day at under 10 on fully 33 individual days. This makes 2017 the least fearful and volatile year in the history of the American stock market. It amounts to a serious problem too.
The reason for this is that as stock markets grow this becalmed, the average investor lets down his or her guard and starts embarking on highly risky trades. In other words, they position themselves for eventually enormous losses.
This is only a real problem when the stock prices stop going up suddenly. Recall when the home prices stopped running higher in 2007/2008 of the Subprime Lending Housing Crisis, Global Financial Crisis, and Great Recession. In less than half a year, the market went into a full-scale panic.
When the knives had finally stopped falling, over a million Americans were foreclosed on and out of their homes. Unemployment rocketed to over 15 percent. The average major cap American stock had plummeted by a shocking 57 percent too.
Unbelievably, it’s like no one learned a thing from the last crisis (which was only a decade ago). Today’s investors pay absolutely ridiculous PE multiples for stocks, happy to chase them ever higher and higher. They are heavily invested in companies whose dreams have not made (and never will make) any profits.
It is absolutely insane to be long stocks today. Europe is splitting apart like a windshield after a rock crashes through it at high speeds (Catalonia in Spain represents only one of more than a dozen plus major secessionist movements riddling the EU today). The United States and China are not at all on the best of terms. North Korea recently declared that a nuclear war could break out with the U.S. and South Korea at any moment.
Is Your Retirement Portfolio Protected from the Danger Signals That the VIX is Flashing Now?
To call these uncertain times is the understatement of the year. Yet the VIX tells us that the majority of American investors simply don’t care. The calm before the storm which markets are navigating now will not hold on forever. The truth is that American stocks are far from cheap now. According to some measures, they are the most expensive that they have ever been in all American history!
Yet gold is nothing likes stocks, which are soaring high today before crashing and burning tomorrow. Gold has already survived each and every single financial and political storm throughout all of recorded human history. This is why you can sleep better at night by sheltering your retirement portfolio in gold as the world gets crazier and riskier (seemingly by the week). Click here right now to receive your completely no cost and no-obligation gold IRA rollover kit from the nation’s gold standard and most award-winning gold retirement company Regal Assets, which will provide you with all of the essential information that you need to protect your own precious retirement funds via a partial diversification of your IRA assets into tangible and physically held gold.