Below is a bubble alert plus an update on the gold market.

February 5 (King World News) – Peter Boockvar:  With the Democrats seemingly wanting to go at it alone on spending almost another $2 Trillion after the $900b bill passed a bit more than a month ago and the $3 Trillion spent last year, interest rates continue higher with the 10 yr now at 1.15-.16% and the 30 yr at 1.95%. As no lunch is free when spending this extraordinary amount of money, it seems hard to avoid higher inflation and interest rates. 

As for the stock market and again to the question of when higher rates matter, it’s impossible to know but here is a chart of the valuation of the S&P 500 from which it would matter at some point. It’s a chart of the Enterprise Value to Sales as it includes debt and avoids the games played with earnings.

BUBBLE ALERT: S&P 500 Business Enterprise
Value vs Sales Hits All-Time High!

While Fed members stated their comfort with market valuations and market stability this week, when looking at this chart (and the margin debt one yesterday) one has to wonder how the Federal Reserve can EVER taper and raise rates again without causing a market hissy fit. Also a frame of reference, with the dividend yield on the S&P 500 at 1.5%, the 10 yr is now not that far behind.

The dollar is also weaker after yesterday’s strength on the spending blowout while commodities are benefiting, particular oil which is up another 1%. The CRB raw industrials index yesterday closed at the highest level since June 2014 and is approaching levels last seen in early 2012.

Commodities Continue Rally From Most
Undervalued Level In History

About the gold market…

King World News note:  The gold and silver markets are rallying after yesterday’s takedown. Keep in mind that the gold market always looks horrendous technically at or near major bottoms. The chart below is a look at how the bullion banks are drawing the (50) WEEKLY chart of the gold market, attempting to make it look like it is breaking down in order to generate additional selling. It will be very interesting to see if they succeed or not.

To listen to Gerald Celente discuss why gold and silver will surge strongly and what surprises to expect in 2021 CLICK HERE OR ON THE IMAGE BELOW.

KWN has now released an audio interview with Alasdair Macleod discussing the shortages in the London metals market and you can listen by CLICKING HERE OR ON THE IMAGE BELOW.

Also released! This Is How We Will Know Gold Has Bottomed CLICK HERE TO READ.

Also released! Gold Plunges $50 But Greyerz Says There Are Major Shortages In The LBMA And Futures Markets CLICK HERE TO READ.

Also released! Truly Mind-Boggling Chart, Sprott Says They Have 100+ Million Ounces Of Physical Silver, Plus Unleashing Reserves CLICK HERE TO READ.

Also released! Sprott Asset Management: Silver Headed To $35, Above That Expect Price Spikes To $47-$119 CLICK HERE TO READ.

Also released! JP Morgan And Silver, The Great Rotation Into Gold & Silver, And Look At These Remarkable Charts CLICK HERE TO READ.

Also released! After Today’s Pullback It Is Important To Look At The Big Picture For Gold & Silver CLICK HERE TO READ.

Also released! WHAT TIMING: Curiously JP Morgan Downgrades Silver Stocks, But This Is Even More Stunning CLICK HERE TO READ.

Also released! Reddit WallStreetBets Group Unleashing Silver Price, But This Will Trigger Real Panic Into Gold & Silver CLICK HERE TO READ.

Also released! SILVER: WHAT A DAY! Look At Who Just Predicted We Will See $2,500-$4,000 GOLD And $57-$131 Silver CLICK HERE TO READ.

Also released! SILVER PRICE SOARING ON SQUEEZE: $50 Price Target Just Issued But Look At This Surprise CLICK HERE TO READ.

Also released! Greyerz – Macleod Is Right, There Is NO LIQUIDITY IN LONDON And Bullion Banks Are Short 100 Million Ounces Of Silver CLICK HERE TO READ.

Also released! Robinhood Silver Traders May Break The Comex And Serious Hurt Bullion Banks CLICK HERE TO READ.

Also released! Central Banks Created Niagara Falls Of Printed Money And Debt, Gushing Chaotically All Over The World CLICK HERE TO READ.

Also released! NO SILVER LIQUIDITY IN LONDON: This “Could Destabilize All Gold & Silver Contracts” As Reddit Silver Short Squeeze Continues CLICK HERE TO READ.

Also released! REDDIT TRADERS TARGET SILVER: Man Who Oversees Nearly $160 Billion Says Silver May Be Poised To Skyrocket CLICK HERE TO READ.

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