Sick Labor Market To Pop Biggest Stock Bubble Ever Seen? | George Gammon

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**George Gammon** (0:56)
I just did a video, price to sales or using the price to sales ratio. And currently that's right around 3.2 ish. And the peak of the.com bubble, it was 2.87. So there's a lot of metrics that you can use that would say that not only are we in a bubble in the stock market, but it's one of the biggest bubbles we've ever seen. So I don't think that's really debatable as far as the valuations being at nosebleed levels. But that doesn't mean that it can't triple from here. Like, for me, it's a little bit easier to determine what's happening with the economy. And I think it's slowing down. And my main reason for saying that is the labor market.

**Adam Taggart** (1:46)
Welcome to Thoughtful Money. I'm its founder and your host, Adam Taggart. The stock market's back in party mode since zooming back to all-time highs in the wake of the April Liberation Day lows. Now, the Fed just cut its policy rate for the first time this year, and it's guided that more rate cuts likely lie ahead. So, can the bulls remain in charge and keep powering asset prices higher into 2026? Or are the many potential risks, not the least of which, is a slowing economy, more likely to bring an end to the party? To discuss, we've got the good fortune to welcome George Gammon back to the program. George is best known for his financial education media endeavors, most notably his George Gammon and Rebel Capitalist YouTube channels. George, thanks so much for joining us today.

**George Gammon** (2:33)
Thanks for having me. I'm super excited to dive in. We got a lot to talk about.

**Adam Taggart** (2:37)
We do. It's a real pleasure. Looking forward to seeing you in person, and I think just a little bit over a month.

**George Gammon** (2:43)
Yeah, New Orleans.

**Adam Taggart** (2:44)
New Orleans Conference. If anybody watching is going there in person, George and I look forward to meeting you guys in the halls there. But George, it's actually been embarrassingly long since I've had you on the program. I'm sure many viewers are familiar with you, but for those who aren't, let's just kick it off with a question that I used to ask a lot. I ask less these days, but I think it's important here just to introduce your way of thinking to people. What's your current assessment of the economy and the financial markets?

**George Gammon** (3:13)
Well, I think those are two different questions, right? Unfortunately, I mean, I wish they were the same question, but they're not. The stock market should be a reflection of what's happening in the economy, but I think often there's an inverse correlation, which is what I think we're seeing right now. As far as the economy, because the stock market predicting whether it's going to go up or down, I mean, who knows, right? The only thing that we know is it's in a bubble.
I just did a video price to sales or using the price to sales ratio, and currently that's right around 3.2-ish, and the peak of the.com bubble, it was 2.87. So there's a lot of metrics that you can use that would say that not only are we in a bubble in the stock market, but it's one of the biggest bubbles we've ever seen. So I don't think that's really debatable as far as the valuations being at nosebleed levels, but that doesn't mean that it can't triple from here.

**Adam Taggart** (4:11)
The big question is when will it matter if ever?

**George Gammon** (4:13)
Right. Exactly. So for me, it's a little bit easier to determine what's happening with the economy. And I think it's slowing down. And my main reason for saying that is the labor market and these, I know you've talked about this on your channel, these huge revisions. I mean, it's not just the monthly revisions where June, we start off at 147, which headline, okay, everyone's celebrating it. But then you fast forward a few months later and, oh, sorry, it's at negative 13