Updated: 4 days ago
There is a Massive Disconnect Between corporate profit and corporate equity value in the In Stock Market.
consider the attached graph after reading this:
Companies lost billions yet corporate equity value is so high simply because their loses are not being factored in. This indicate that there’s so much engineered liquidity in the market which has created lot of fair value gaps, which price needs to fill in .in an attempt to fill in these fair value gaps that are in the market, we might experience a major price decline in history [market crash].
The massive difference between corporate profit and corporate equity value in the stock clearly indicates that most companies are not making money instead their losing billions, yet their corporate equity value keeps on increasing in the stock market this clearly indicates that there’s so much engineered liquidity being pumped in the stock market and sooner or later this bubble will fade. Fortunes will be made or lost over the few months.
These is one of the reasons I've cashed out all my stocks in several companies except Gold companies cause XAUUSD[GOLD]will mostly likely be the safe heaven. This is my opinion not a financial advise to any one, i might be wrong /right.