This Is, Officially, the 3rd Priciest Stock Market in Over 150 Years -- and There's No Mistaking What Comes Next for Stocks, Based on History

Tue, July 29, 2025

Key Points

With the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average staging one of their strongest intra-year reversals in history, stock valuations have moved to nosebleed territory. The previous two instances where the S&P 500's Shiller price-to-earnings (P/E) Ratio hit 39 didn't end well for investors.

There are only two previous instances where the Shiller P/E has been higher than 38.97 -- and the end result wasn't pretty for investors either time:

In December 1999, just months prior to the popping of the dot-com bubble, the S&P 500's Shiller P/E hit an all-time high of 44.19. On a peak-to-trough basis, the S&P 500 lost 49% of its value during the bursting of the dot-com bubble, while the Nasdaq Composite plummeted 78%. During the first week of January 2022, with fiscal stimulus fueling the U.S. economy and stock market, the Shiller P/E crept ever-so-slightly above 40. During the 2022 bear market, the benchmark index shed 25% of its value, with the Nasdaq peaking at a 36% decline. In fact, all five prior occurrences (not including the present) where the Shiller P/E Ratio has surpassed 30 and held this level for at least two months were eventually followed by declines in one or more of the major stock indexes ranging from 20% to as much as 89% (during the Great Depression).

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

It's Not Too Late To Take Advantage Of Our Exclusive 'Recession Protection' Gold And Silver IRA Offer.

Billionaire Investor Ray Dalio Urges 15% Allocation In gold or Bitcoin, Says World On The Verge Of An Economic Heart Attack

07/28/2025

Billionaire investor Ray Dalio continues to sound the alarm over the health of the global economy, citing unsustainable government deficit spending. He is advising investors to allocate around 15% of their portfolios to alternative currencies such as gold or Bitcoin.

The founder of Bridgewater Associates shared his dire economic outlook during an appearance on CNBC’s Master Investor Podcast on Sunday. Focusing on the U.S., he pointed out that while the government collects approximately $5 trillion in income, it spends $7 trillion.

“It’s spending 40% more than it takes in, and it can’t really cut spending because so much of it is fixed. It’s accumulated a debt that’s six times its income…,” he said. “The credit system is like a circulatory system that brings nutrients—buying power—to different parts of the economy. If that buying power is used to generate income, then the income services the debt, and it’s a healthy system. But when debts, debt service payments, and interest rates rise, they begin to crowd out other spending—like plaque in the circulatory system—creating a problem akin to an economic heart attack.”

His comments come as U.S. government debt has surpassed $37 trillion.

Dalio noted that due to its persistent deficit spending, the U.S. government will likely need to issue nearly $12 trillion in Treasuries next year to service its debt.

“We are at the point of no return,” Dalio warned, adding that the only remaining option is for the government to borrow more and rely on central banks to print money. He also cautioned investors that indicators such as the emergence of capital controls are beginning to flash warning signs.

Although Dalio focused on the U.S., he emphasized that all Western-led economies face similar challenges.

“Just like in the ’70s or the ’30s, they will all tend to go down together. We’ll pay attention to their relative movements, but they will all decline in value—relative not to fiat currencies, but to hard currencies. And that hard currency is gold,” he said.

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

About Patriot Gold Group CEO Jack Hanney

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.