Wednesday , 12 August 2020

Stock Indices

Are You Really Making Money In the Current Bull Market? REALLY ?!

Earnings may be a consideration when investing in the stock market, but whether you make money or not depends on the extent of monetary inflation. The rate of inflation has been twice that of the gains seen in the Dow Jones since 1920 but currently, while Wall Street may be seeing a “bull market”, the inflation adjusted returns investors receive from rising share prices aren’t compensating them for the decline in purchasing power the dollars their profits are denominated in. [Let me explain further.]

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China’s Equity Markets Going Absolutely Ballistic!

The speculative fervor in China's equity markets is spreading. The Shanghai Composite has cleared the 5000 mark after hovering just above 2000 around six months ago. This rally has been nothing short of spectacular. HERE are some key trends that point to just how heated the market has become.

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What Does the Forward PE Ratio Tell Us – REALLY?

The forward price/earnings (PE) ratio is probably the most popular way to measure value in the stock market - when the forward PE is above average, the market is expensive and future returns will be low and, when the PE ratio is below average, the market is cheap and future returns will be high. Putting such popular rules of thumb aside, what does the forward PE really tell us?

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Current Equity Market Valuations Defy Logic – Here’s Why

What is unique about this rally is the excessive premium being placed on future earnings and economic growth. Unfortunately, the level and term structure of interest rates are not confirming the broad logic behind these equity market valuations. In fact, they damn that logic. In the past, when high valuation measures occurred and subsequent GDP was weak, the stock market has posted substantial losses. What can we expect this time?

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Is This the Beginning of the Expected Stock Market Crash?

For months numerous articles have been posted on this site substantiating why a stock market collapse of epic proportions is in the cards to happen soon. The basis for such a conclusion are based on a diverse perspective that warrants your attention. With your money on the line - your future quality of life at risk - here is your opportunity to be forewarned and do something about it.

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Here’s the REAL Reason Behind Current Stock Market Volatility

The current stock market volatility is really not about interest rate ticks in the federal funds market. It's actually about the fact that the entire post-crisis bull market is a monumental house of cards built on a historically aberrant monetary regime that is unsustainable and eventually heading for a crash landing. Let me explain.

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