A growing number of analysts are calling the stock market a bubble. That’s based on a number of factors, such as corporate earnings or sales relative to price. There’s also the Buffett Indicator, showing that the value of the total stock market is $49.2 trillion, but annualized GDP is $21.9 trillion. That gives a total stock valuation of 224 percent of the current economy, a level that, historically, is well into overvalued territory.
But the funny thing about bubbles is how much higher they can go. And with interest rates near zero, the real question is whether the bond market, which has $17 trillion of assets with zero percent or even negative yields, is in worse shape on a valuation basis than the stock market.
What’s the bigger bubble – stocks or bonds?
Hit “Reply” to this email and let us know what you think!
Now here’s the rest of the news:
The Fed Triggered an Insatiable Demand for the Riskiest Corporate Debt –Mike Shedlock
Not only are these purchases illegal, they’re leveraging their equity 7 to 1 for below-investment-grade corporate bonds. Result? Investors are buying junk bonds at low yields…
February 23, 2020
Price Alert! As this post is being finalized, gold & silver are making massive moves higher.
One analyst sees Bitcoin surging more than double in the next few months. The reason? For the first time in years, the cryptocurrency 50-day moving average has risen over the 200-day moving average.
That’s a bullish technical indicator called a golden cross. And if that trend is true (and with cryptocurrencies it is hard to tell), some see Bitcoin heading as high as $26,000. Why? Be-cause the last golden cross in Bitcoin led to 170% surge. The numbers may be optimistic, but Bitcoin is still in an uptrend.
Today is DarrenDaily Recap Sunday. A collection of the weeks videos from Darren Hardy. Enjoy!
…and two more fabulous pictures of Newfoundland … A place I soon will live forever!
February 23, 2019
Create a WordPress Membership Site with MemberPress
Look what I was taught to do in a manner of minutes with new-found-friend Robert Plank. Check Robert’s instructional video below … if interested!
I’ve got the biggest smile on my face, right now, ’cause I’m not very techie at all … so if I ever have to watch this again, I just have to come back here and watch it. I only see one hang-up however! Should YouTube decide to deny access, or Robert Plant deletes this tutorial, it is gone! 😉
February 23, 2017
Why Efficiency Sucks!
When it comes to efficiency, well, who doesn’t want that? Better gas milage, a washing machine that uses less water, light bulbs that use less electricity…
As investors, we are trained to love productivity and efficiency. On the productivity front, a company that gets more output from its employees is typically a more profitable company. If you have one person doing the job of two, well, costs are lower, which means profits will be higher, right?
Again, investors always value productivity and efficiency. But in the bigger picture, is there any way to factor the fate of the 9,500 employee that were fired into the value equation?
Do we really need a Heinz ketchup AND a Kraft Ketchup? I understand the free market argument here. Capitalism is all about ownership…
Would YOU have approved the Heinz and Kraft merger?