Economists are bad at seeing bubbles, but politicians are even worse!
If the economy does well, they want to take credit for it. If it doesn’t, it’s probably the last party’s fault! They attribute everything to government and give consumers a back seat. It’s laughable!
The markets on crack are still in denial about the bubble and its ultimate collapse. The typical stock bubble crashes between 70% to 90%. In other words, they don’t correct… they don’t have a soft landing… they BURST. No exceptions in history.
In the rounded top scenario above, we’re getting close to the point where the markets are very likely to fail for the second time to make a new high since the peak in mid-May.
When that happens and the S&P 500 falls to new lows below the 1,810 threshold, reality might finally kick in. The markets will then see a more serious wave down, likely into around early July or so. And eventually, it’ll carry the Dow to around 5,500 to 6,000 likely by late 2017. The greatest crash of your life is just ahead.
This article is brought to you courtesy of Harry Dent.