Watch your wallets!

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
Robert Reich , Former United States Secretary of Labor and economist said the following today in his blog post:

"I’m not predicting an imminent collapse of the stock market but I am sounding an alarm. Consider: Retail sale are flat, median real wages are flat, nearly half the revenues of large U.S. companies come from foreign sales but markets abroad are going nowhere, and the ratio of stock prices to company earnings is higher than it's been since before the 2008 crash.

The only reason stock prices continue to advance is they’re being pumped up temporarily by (1) corporate stock buy-backs and mergers, (2) anticipated tax reductions through “inversions” (companies planning to desert the U.S.), (3) low bond yields that continue to drive pension funds and other institutions into stocks, and (4) capital flows from the rest of the world, for which the U.S. stock market is a safe haven compared to tumult and uncertainty abroad. But this can’t go on much longer. Watch your wallets."
Reply
#2
Actually that's what I am observing too. Econs from China to EU to US is slowing down significantly, while asset prices in UK and Aussie which are reserve ccy countries, are in worrisome state.

The twisted logic now is that central banks and governments around the world will again save the economy. However they forgot there are differences now vs 2008. G7 sovereign debt is high and interest rate is already unprecedentedly low. Defibrillator can only be used that many times before nature have to take its course for a supported decline.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
#3
When companies cut costs and get cheaper workers to replace mid level managers, can't expect more spending. The jobs created are lower income jobs than before.

Without spending, how to grow sales? What a paradox...
Reply
#4
what i am seeing now is more n more ppl getting higher pay...
Reply
#5
i just accompanied a foreign just turned citizen bought one 3-bedder at panaroma last weekend, full cash, no laksa, cool
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)