Motley Fool warns that US stocks are overvalued

Trading floor of the New York Stock Exchange

Motley Fool warns that US stocks are overvalued
Writer: Dr. Bob Thiel | Digital Narration

COGwriter

The US stock market has been roaring along. But one major financial consulting firm, Motley Fool, is sending out a warning:

The Stock Market Is Flashing a Warning Signal Seen Only Once Before. Here’s What History Says Comes Next.

July 6, 2026

This year has been an interesting one for the stock market, to put it mildly. Major indexes just ended their best quarter in years, with the S&P 500 (^GSPC+0.47%), Nasdaq Composite (^IXIC+0.78%), and Dow Jones Industrial Average (^DJI+0.28%) up by 14%, 19%, and 13%, respectively, since early April.

At the same time, though, investors are growing pessimistic about the market’s future. While around 31% of investors believe stock prices will rise in the next six months, according to a survey from the American Association of Individual Investors published on July 1, 42% believe the market will fall.

The market’s short-term future will always be uncertain, but there’s one indicator creeping into territory seen only during the dot-com bubble of the early 2000s. Here’s what history says might be coming. …

If history shows us anything, it’s that healthy companies are incredibly resilient over time. So the best thing investors can do now is invest in quality stocks and prepare to hold them for at least a few years — if not decades.

Plenty of stocks are overvalued right now, and these investments have the most to lose during a downturn. While some stocks may appear successful with soaring prices, if those prices aren’t justified by strong business fundamentals, they may face a severe pullback when the market turns. https://www.fool.com/investing/2026/07/06/the-stock-market-is-flashing-a-warning-signal-seen/

Stock prices rise and fall.

But we need to be careful about trusting things like the US stock market. It is based on the US economy and the US dollar, which will cease their dominant roles in the future.

Years back, Michael Snyder posted the following:

A Nightmare On Wall Street

This is bad.  This is really, really bad.  Investors loved the ride up, but now the Federal Reserve is helping to destroy the bubble that it once so eagerly created, and trillions of dollars in paper wealth is being wiped out in the process.  Unfortunately, our system is not really designed to handle this sort of carnage.  So many in the financial world live right on the edge, and when things go really, really bad the dominoes can start falling at a pace that is absolutely breathtaking.  We witnessed this back in 2008, and it could soon happen again. …

The U.S. economy is clearly heading into a very painful recession, and you don’t raise rates as a recession is starting.

Unfortunately, Fed officials feel like their hands are tied because inflation is completely out of control. …

So the Fed is going to bring down the hammer, and that is going to continue to roil financial markets.

It took years to get to the top of the rollercoaster, but the ride down will go much, much faster. 06/13/22 http://theeconomiccollapseblog.com/a-nightmare-on-wall-street/

One of the reasons I included the above is that the US Federal Reserve has indicated that because of persistent inflation, it will likely not drop, but increase interest rates. That tends to have a negative effect on stock prices. Plus, it will increase the debt of the US as it will have to pay a higher amount of interest on its staggering debt.

One issue, as I have said for years, is that the stock market, in the USA at least, has been partially phony for some time.

In the USA it has been propped up by both major political parties via unnaturally low interest rates, the Federal Reserve’s legal counterfeiting called “quantitative easing,” and the USA running trillion-plus dollar deficits for many years. Based on certain historical “fundamentals,” the market is grossly overpriced.

Of course, markets often rise and fall. But as I wrote in 2017, despite assertions from then Fed Chair Janet Yellen, we were not past the time of financial crises (see Janet Yellen does not believe that there will be another financial crisis ‘in our lifetimes’).

Do I think that it is time to panic and it is now all over?

No.

But as far as the advice of certain pundits to ‘keep calm’ goes, that will happen in the future when sudden destruction comes:

3 For when they say, “Peace and safety!” then sudden destruction comes upon them, as labor pains upon a pregnant woman. And they shall not escape. (1 Thessalonians 5:3)

Irrespective of what happens to the stock markets in the USA and around the world, the Bible warns that people should not think that things will continue to go on as they have:

1 Beloved, I now write to you this second epistle (in both of which I stir up your pure minds by way of reminder), 2 that you may be mindful of the words which were spoken before by the holy prophets, and of the commandment of us, the apostles of the Lord and Savior, 3 knowing this first: that scoffers will come in the last days, walking according to their own lusts, 4 and saying, “Where is the promise of His coming? For since the fathers fell asleep, all things continue as they were from the beginning of creation.” 5 For this they willfully forget: that by the word of God the heavens were of old, and the earth standing out of water and in the water, 6 by which the world that then existed perished, being flooded with water. 7 But the heavens and the earth which are now preserved by the same word, are reserved for fire until the day of judgment and perdition of ungodly men.

8 But, beloved, do not forget this one thing, that with the Lord one day is as a thousand years, and a thousand years as one day. 9 The Lord is not slack concerning His promise, as some count slackness, but is longsuffering toward us, not willing that any should perish but that all should come to repentance.

10 But the day of the Lord will come as a thief in the night, in which the heavens will pass away with a great noise, and the elements will melt with fervent heat; both the earth and the works that are in it will be burned up. 11 Therefore, since all these things will be dissolved, what manner of persons ought you to be in holy conduct and godliness, 12 looking for and hastening the coming of the day of God, because of which the heavens will be dissolved, being on fire, and the elements will melt with fervent heat? 13 Nevertheless we, according to His promise, look for new heavens and a new earth in which righteousness dwells.

Therefore, beloved, looking forward to these things, be diligent to be found by Him in peace, without spot and blameless; (2 Peter 3:1-14)

Jesus also warned about those who apparently did not believe things would get bad (cf. Matthew 24:36-44) as well as Christians who thought they did not need to change their lives (Revelation 3:14-19).

The reality is that the financial markets have NOT been normal, but have been manipulated by the US Federal Reserve and other government-related entities.

If it were NOT for the Federal Reserve counterfeiting money where it basically ‘creates’ money and then gets US Treasury pledges created, etc. the US stock market would have a much lower valuation.

Basically, because of manipulation of financial markets, many have invested in the stock market since banks, for example, are paying almost nothing in the way of interest (some banks in Europe still charge ‘negative interest,’ which gets people to invest in almost anything, since why put funds in a bank that will charge you more and more money the longer you keep your funds there).

What the US Federal Reserve, US government, and other entities have done in creating ‘money’ to keep interest rates down is wrong.

This diluting of the value of coinage/currency is condemned in the Bible, when it uses the old term ‘dross’ (money that has been debased):

4 Take away the dross from silver (Proverbs 25:4a).

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)

18 “Son of man, the house of Israel has become dross to Me; they are all bronze, tin, iron, and lead, in the midst of a furnace; they have become dross from silver. 19 Therefore thus says the Lord God: ‘Because you have all become dross, therefore behold, I will gather you into the midst of Jerusalem. 20 As men gather silver, bronze, iron, lead, and tin into the midst of a furnace, to blow fire on it, to melt it; so I will gather you in My anger and in My fury, and I will leave you there and melt you. 21 Yes, I will gather you and blow on you with the fire of My wrath, and you shall be melted in its midst. 22 As silver is melted in the midst of a furnace, so shall you be melted in its midst; then you shall know that I, the Lord, have poured out My fury on you.’” (Ezekiel 22:18-22)

Although the Bible warns against using dross and diluting the money supply, modern ‘experts’ have a different view. The wrong views on economics will lead to economic problems and ultimately the total crash of the dollar of the USA.

There are things that the Federal Reserve can do to prop up the market, but much of its ‘ammunition’ is more dangerous than most think (cf. Habakkuk 2:6-8).

Notice something that Jesus prophesied:

7 But when you hear of wars and rumors of wars, do not be troubled; for such things must happen, but the end is not yet. 8 For nation will rise against nation, and kingdom against kingdom. And there will be earthquakes in various places, and there will be famines and troubles. These are the beginnings of sorrows. (Mark 13:7-8)

We are having wars and rumors of wars and ‘troubles’ and the financial markets are being set up for even more severe troubles in the future. We are in the ‘beginning of sorrows.’

Financial troubles are expected to be a factor in the rise of the European Babylonian Beast power. However, expect more volatility in the future first.

Some items of possibly related interest may include:

The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is are links to related videos: European history and the Bible, Europe In Prophecy, The End of European Babylon, and Can You Prove that the Beast to Come is European? Here is a link to a related sermon in the Spanish language: El Fin de la Babilonia Europea.
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? Do you really know what will happen to Europe and the English-speaking peoples? What about the peoples of Africa, Asia, South America, and the islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon;  When Will the End of the Age Come?Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.

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