
There is no buying opportunity right now because we don’t know where the bottom is when these things happen under Republicans everything usually go haywireToo many people have expected this move for it to be anything more than a correction. The backdrop is one of a sustained and synchronized US and global recovery at a time when corporate balance sheets are probably the healthiest they have been since the 1990s.
With few market practitioners remembering those times, and most inured to secular low growth and rolling crises, few people are ready for a long-lasting virtuous circle of investment (inc. capex), employment, consumption, and confidence. Yes valuations look stretched but if growth continues to surprise to the upside then so do earnings and then valuations start to look reasonable again.
In fact, this is exactly what happened last year. In the meantime, bond yields are still very low, even if they continue to rise, and the inflation debate of only 2 months ago – whether Phillips curves are structurally flatter – is far from being settled.
For me, this is a clear buying opportunity, and particularly in European stocks which have huge upside but are close to last year’s lows.
interestingToo many people have expected this move for it to be anything more than a correction. The backdrop is one of a sustained and synchronized US and global recovery at a time when corporate balance sheets are probably the healthiest they have been since the 1990s.
With few market practitioners remembering those times, and most inured to secular low growth and rolling crises, few people are ready for a long-lasting virtuous circle of investment (inc. capex), employment, consumption, and confidence. Yes valuations look stretched but if growth continues to surprise to the upside then so do earnings and then valuations start to look reasonable again.
In fact, this is exactly what happened last year. In the meantime, bond yields are still very low, even if they continue to rise, and the inflation debate of only 2 months ago – whether Phillips curves are structurally flatter – is far from being settled.
For me, this is a clear buying opportunity, and particularly in European stocks which have huge upside but are close to last year’s lows.
Some interesting looking opportunities around in the US. eg Ford's yield is higher than it's P/E right now.There is no buying opportunity right now because we don’t know where the bottom is when these things happen under Republicans everything usually go haywire
Don’t forget the dollar is very very weak alsoSome interesting looking opportunities around in the US. eg Ford's yield is higher than it's P/E right now.
When his wife get's pregnant..... he blames it on Obama too !!!!These honkies will blame us for everything bad that has ever happened to this country.![]()