Juggling Dynamite

Danielle was a guest today on Talk Digital Network talking with Jim Goddard about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.

For all the hype and hyperbole, the S&P 500 has gained .8% a year over the past 13.5 years since this secular bear began and today once more boasts the distinction of being one of the most hideously over-valued markets in history.

Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.

And as we look at the gains made in US economic leading indicators over the last 4 years compared with US stocks (that other supposedly leading indicator)…it all adds up…to a nightmare of risk for capital.

While media offers ’round the clock coverage of Washington dysfunction, in the real world…corporate revenue and profits (which present stock prices have forecast to infinity and beyond) are weak and getting weaker in the second half.

Meanwhile the most recent OECD report ranks Canada as having the second most over-valued housing market on the planet (note the trend among commodity producers here, too bad that commodity super-cycle is moving the other way now), just as Canadian household debt hit a fresh record in the second quarter at 163.4% debt to disposable income. (more Canadian bank shares anyone??)