It is our view the main risk to equity prices today is that they are over-valued relative to global growth and earnings prospects, and that is the case even before the US feels any government cuts slated for 2013. The following discussion explains the issues well. Richard Cookson, global CIO at Citi Private Bank, explains to CNBC the current bubble-like nature of U.S. equities. Here is a direct link.
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Ben’s got your back – buying $40,000,000,000+ treasuries per month forever.
Stocks are up.
The recession that was repeatedly predicted by gloom-and-doomers for 2011 and 2012 never occurred.
We’ve got a newly reelected Oblabbinator-in-Chief.
Osama is dead.
Oil prices are falling.
Unemployment is falling.
Inflation is flat.
There’s a cease fire in the middle east.
Nissan is producing affordable electric cars for the masses.
Europe is working feverishly to solve their debt problems.
The US has enough shale-oil to build and power a new sun for the world for 1 billion years; and the technology to do it.
The US debt is only 17T, with a GDP of 15T – no biggie. That’s like a guy making $150K per year with a $500K mortgage. It’s doable.
The congress is working feverishly to solve the budget problems.
There is no bad news anywhere.
Good times are here again.
🙂