Another Leg

Is it the money or the macro driving the stock market?  Business Insider

Stanley Druckenmiller interview.  Then note Barron’s cover story More Stocks; Fewer Bonds.  Yea…

Rick Rule interview.  “Under sequestration, government spending increases by $2.4 trillion over the next 10 years rather than $2.5 trillion without it.”  Ron Paul

Yes, the stock market is priced richly says Doug Short here and here.  Especially if today’s profit margins are a function of the credit bubble (Mebane Faber).

What a disaster:

And so are the fundamentals in this week’s missive by Grant Williams.

4 thoughts on “Another Leg

  1. JJ-Does ISA have any palladium or platinum pics? I dont remember any in the past…just curious.

    • No, I’ve never found a quality producer. FNV, however, has meaningful platinum royalty revenue.

  2. Doug Short, is correct as most stocks are fully priced, in my view.

    I also concur with, Mr Drunkenmiller (love that name), regarding the federal debt and future governmental obligations… America, will have a financial crisis within a decade which may reveal the Great Depression…We are without any brilliant leadership and a ruling political class.

    This rally from 2009 until now, has seen only two corrections of barely legal, corrections of 10%…This massive rally, has been spawn by the action of the Central Bank and the deficit spending by the Central government…

    In my opinion, the chart with the NYSE margin debt speaks volume of what may happen later this year…All we need is a quarter of declining GNP and the markets implode…

    This economy is marginal at best and has been propelled by government spending…

    • Well said, Hans. As Drunkenmiller noted the party can continue for a while. Bernake is printing a $trillion a year…

      Ironically, the shale boom is facilitating much stronger footing for the U.S. when a Federal fiscal reckoning occurs.

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