Stock prices are primarily information. They tell investors where their capital can be most fruitfully employed. The important thing is not that prices be high or low, but that they be honest.
There's another little problem out there - if the Fed cuts as "per usual", and the BOJ stands pat, the carry trade isn't nearly as much fun anymore, and more money will be squeezed out of that play. The box the Fed's in is getting smaller.
We have a couple of months before the real 50% correction comes, and I’ve been waiting for a couple of years mostly out of the market. Have plenty of cash ready to get back in when the slaughterhouse opens, and even with the crypto following the market, still up mega with my buy in prices and the precious metals I’ve bought. Most of my decisions have been based on what Bill and you good people have been saying. The crypto buys were all on my own research, and I believe that now is an opportunity to get in for those who think they missed out. As I’ve been saying for years now here, Bitcoin, Ethereum, Solana and Avalanche are at very decent prices right now. So dip your toes in the pool and buy a few of these, and have a little support for the coming Stock Market crash 😊
Steve, thanks so much for your remarks and response.
I dabble in the stock market just enough to be scared and tentative. With cautious approach I maintain several small trading accounts but enjoy trading options…puts and calls.
I get in and out of these trades within several days…..make a couple $$$ and then move on.
But my concerns with the stock market are the P/E ratios that are one of the best measures of value. These ratios are in nosebleed territory now, so buying puts, which is a shorting strategy with defined risk, is a sleep well at night play I like to employ.
But, how can any of us really know what the true value of this market actually is with inflation destroying the value of our currency.
Japan, is largest holder of US debt. According to recent financial reports, Fed Chair Powell, recently begged the BOJ not to dump them .... supposedly offering BoJ some other unknown temp work-around .... As even Captain Obvious might now have concluded; It (unknown inducement) is not working !!
Won't a huge deflation of assets make investments underwater relative to high purchase prices or high LTV mortgages? Investors and bankers alike wont be happy. Many will be given back to the bank. Ouch.
Is the Bloomberg/Goldman Sachs chart on "Total Equity Market Capitalization per Economy" not a pictorial representation of Brent Johnson's Dollar Milkshake Theory? It would seem that there has always been a concentration of capital in the US (the diamonds from 20 years ago show this), but this has begun to grow in the last twenty years. I cannot see it in the chart, but is capital more concentrated in the US today than it was twenty years ago?
Little known Detail: the BIS in Basel here in Europe often referred to as the "Gnomes of Basel"
holds Meeting bimonthly with average 38/40 participants, mainly heads of important CB's
around the Globe.
One or two Outsiders are invited to join them, mostly envoys from TBTF-Institutions. During these sich Meetings annualy they form and adjust their monetary actions, discuss current issue aso.
So we might be assured that there's little room for accident.
There's another little problem out there - if the Fed cuts as "per usual", and the BOJ stands pat, the carry trade isn't nearly as much fun anymore, and more money will be squeezed out of that play. The box the Fed's in is getting smaller.
Good to read you again here on BPR Anne.
You bring good insights. Thanks.
Yesterday’s scary and precipitous sell off only brought the market back to where it was on about May 1st…..a healthy “correction”.
So, everybody, just relax, Armageddon is not fast approaching and Joe is still in control….I guess…..
We have a couple of months before the real 50% correction comes, and I’ve been waiting for a couple of years mostly out of the market. Have plenty of cash ready to get back in when the slaughterhouse opens, and even with the crypto following the market, still up mega with my buy in prices and the precious metals I’ve bought. Most of my decisions have been based on what Bill and you good people have been saying. The crypto buys were all on my own research, and I believe that now is an opportunity to get in for those who think they missed out. As I’ve been saying for years now here, Bitcoin, Ethereum, Solana and Avalanche are at very decent prices right now. So dip your toes in the pool and buy a few of these, and have a little support for the coming Stock Market crash 😊
Steve, thanks so much for your remarks and response.
I dabble in the stock market just enough to be scared and tentative. With cautious approach I maintain several small trading accounts but enjoy trading options…puts and calls.
I get in and out of these trades within several days…..make a couple $$$ and then move on.
But my concerns with the stock market are the P/E ratios that are one of the best measures of value. These ratios are in nosebleed territory now, so buying puts, which is a shorting strategy with defined risk, is a sleep well at night play I like to employ.
But, how can any of us really know what the true value of this market actually is with inflation destroying the value of our currency.
Anyway, thanks for you input.
Fiat lux,
John
Japan, is largest holder of US debt. According to recent financial reports, Fed Chair Powell, recently begged the BOJ not to dump them .... supposedly offering BoJ some other unknown temp work-around .... As even Captain Obvious might now have concluded; It (unknown inducement) is not working !!
"But that they be honest". Its a nice objective Bill .
Have to admit, had a big smile td when looking at the USD versus € and € versus SFR.
Even the artificial crap called € won signicficantly against USD and my lovely SFR's gained a lot more against €.
Safe harbors sometimes work....😊
PS.: totally agree to Anne. Carry trades are in shambles right now.
I noticed that UK isn’t included in the top 25,
does that have anything to do with the social disruptions going on in the UK.
Won't a huge deflation of assets make investments underwater relative to high purchase prices or high LTV mortgages? Investors and bankers alike wont be happy. Many will be given back to the bank. Ouch.
Is the Bloomberg/Goldman Sachs chart on "Total Equity Market Capitalization per Economy" not a pictorial representation of Brent Johnson's Dollar Milkshake Theory? It would seem that there has always been a concentration of capital in the US (the diamonds from 20 years ago show this), but this has begun to grow in the last twenty years. I cannot see it in the chart, but is capital more concentrated in the US today than it was twenty years ago?
Sich reads six. Sorry
@ C Eti
Little known Detail: the BIS in Basel here in Europe often referred to as the "Gnomes of Basel"
holds Meeting bimonthly with average 38/40 participants, mainly heads of important CB's
around the Globe.
One or two Outsiders are invited to join them, mostly envoys from TBTF-Institutions. During these sich Meetings annualy they form and adjust their monetary actions, discuss current issue aso.
So we might be assured that there's little room for accident.
Thank you for your insight Peter
Mug's game I think refers to the stock market. I'm a Speculator keep it up Bill.