I spoke with Bridgette Anderson (a relatively luxurious 10 full minutes) last weekend discussing the outlook for the global economy and various world markets. Here is a direct link to the video clip.
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Where’s the video ? I see a video with Jay Taylor.
The US consumer/worker is already feeling the pain now in january. They experienced three taxhikes:
– People earning more than $ 250.000 pay a higher tax.
– There’s the new “Obamacare” tax.
– Payroll tax has risen back to the 2009 level. The cut in the Social Security tax has expired.
Still the wrong video.
You posted the wrong video but the weblink points to the proper video.
must be your browser as it has been right throughout on Firefox.
Getting back to the issues of the economy, I agree with you Danielle about the global economies going/being in recession. But let’s follow the money for a bit. Huge amounts of money are sitting in cash and government bonds. Where is the money going to go??? Let’s assume that the “new normal” becomes the “normal” and interest rates are expected to stay low definitely. Governments can just continue to print money (my last paragraph argues this). So in a world of indefinite 2% bond yields what should stock P/E’s be? Well the answer is 50 and that is the inflationary bubble we may see in stocks in 2013 and until it crashes. There could actually be an equity melt-up in 2013.
Money printing… I was wrong by thinking that the US would go over the fiscal cliff. I thought that both sides would get restraint without having to take blame. But I was wrong, Congress has shown no restraint and we can probably assume that they will not exercise restraint any time soon. So it’s print money and print more. Interest rates will stay low (like Japan). Also, since governments now hold so much debt, why would they raise rates anyway? It would be like drunks voting to raise the price of liquor!
Cash on the sidelines is a myth. All securities must be held by someone until they are retired be it cash, bonds, stocks, etc. Cash on the sidelines is Wall Street marketing nonsense, period.